The State Of Streaming In 2024 & Forecasts For The Next Two Years
Advancements in technology and evolving consumer habits have sparked a seismic shift in the way sports content is consumed in the 21st century.
Cable and satellite television platforms are no longer the dominant platforms they once were, with live streaming services now the medium of choice for millions of people worldwide.
Improved Wi-Fi connectivity and developments in smartphone technology are among the primary drivers for this exciting new world order. As per research from Football Today, recent developments in the United States highlight how the landscape is changing in sports broadcasting.
Diamond Sports Group had built a successful regional sports network across the US, with estimates valuing the organisation at around $11 billion in 2019.
However, Diamond filed for bankruptcy at the end of last year before Amazon stepped in with an offer to pump $115 million into the firm.
The proposal, which is still subject to approval, includes a significant change in the way live basketball, ice hockey and baseball would be aired in the US.
Amazon’s offer is viewed as the latest step along the road to a world where sport is primarily broadcast on streaming platforms rather than traditional television outlets.
The number of pay-television subscribers in the US has almost halved in the past ten years, highlighting why Diamond ended up in a financial pickle.
The ongoing shift to digital streaming delivered a devastating blow to Diamond’s business, which has had an impact on numerous US sports teams.
With Diamond unable to meet its contractual obligations, clubs and leagues have been desperately trying to secure alternative arrangements.
Amazon’s proposed rescue act would not only be a lifesaver, but may also provide them with the foothold in major US sports they have been craving.
Their opportunism is based on Diamond’s projections that streaming revenue was on track to increase from $50m to $700m between 2023 and 2026.
Those figures would undoubtedly be revised if Amazon’s offer is accepted, with some experts predicting that more than $1bn would be closer to the mark.
The bid to add major US sports to its portfolio is an unsurprising move by Amazon given the aggressive strategy they have employed in recent years.
Their acquisition of the rights to air English Premier League matches in 2018 was a statement of intent and one which has helped to drive changes in the way people watch live sport.
That point was hammered home at the 2022 World Cup in Qatar, which produced some eye-watering viewing numbers on live streaming platforms. Analysis conducted by data experts Conviva discovered that the final between Argentina and France generated a record-breaking 21.9 million Peak Concurrent Plays on the platforms they monitored.
This made it the highest streamed event of the four World Cup contests the firm has measured since 2010 and was a 537% increase in total minutes streamed compared to the 2018 final.
This trend will likely be replicated at the 2024 European Championship in Germany as fans worldwide increasingly gravitate towards live streaming platforms.
An estimated 52% of fans in the United Kingdom will reportedly stream Euro 2024 – a 14% increase from the 2020 edition of the prestigious tournament.
That trend is guaranteed to continue apace at the 2026 World Cup in the US, Mexico and Canada, with streaming platforms set to play a key role in airing the tournament.
A recent deal announced by French media company Groupe M6 demonstrates this point, with the firm set to broadcast more than half the games on its live streaming service.
M6 has reportedly paid more than the $141 million that TF1 and BeIN SPORT shelled out for the rights to the 2018 and 2022 editions of the World Cups to secure the rights.
The growing prevalence of live streaming services in sport is further evidenced by a recent study conducted by Muvi.
They discovered that 56% of global internet users engage in online sports coverage each month and employ a multi-device approach to their activities.
Intriguingly, the same percentage of people regularly use a smart television to engage with sport, while 46% of the people surveyed admitted to using a personal computer.
By contrast, just 23% of fans engage with sports on traditional TV platforms – the same figure generated on cable and satellite services.
Given the huge growth in popularity of streaming platforms, it is not unreasonable to imagine that they will replace most other mediums in the not-too-distant future.
Viewing figures at the next two major international football tournaments will unquestionably paint a useful picture of just how quickly this will happen.
Image: Glenn Carstens-Peters on Unsplash
