Sports television rights in the digital age

News out of the UK today is that Amazon has reached a five-year exclusive rights deal to show the US Open tennis tournament in Britain:

https://www.theguardian.com/technology/2018/apr/19/amazon-prime-100-m-subscribers-video-music-streaming-netflix

This seems like a significant landmark in the sports television world, and one with very interesting ramifications going forward. The company for which I do most of my sports commentary work at the moment, DAZN, fancies itself as "the Netflix of sport" and has acquired a huge array of rights packages - mostly across non-primary sports in its respective countries - across its current territories of Canada, Germany, Austria, Switzerland and Japan. And I understand DAZN has plans to begin operating in the US as well, although I struggle to envision how DAZN might work in the US given the abundance of competition among network and cable television stations. (I have zero inside knowledge about DAZN's plans, although one model that I think might work would involve packaging various League Pass-type properties for the various major sports under a single banner and at a discount price.) Elsewhere, the NFL has experimented with offering Thursday night games online, albeit always with a network TV alternative, and in the UK Amazon is apparently bidding for at least one tranche of English Premiership soccer rights, so it's not just the lesser sports potentially moving online.

What do we think about all of this, both in the US and elsewhere? The sports television rights bubble is bound to burst eventually - network contracts can't keep increasing year after year after year (can they?), unless non-traditional and super-rich competitors like Amazon enter the fray. At the same time, the example of English cricket might be worth noting: in recent history, cricket arguably never more popular in Britain than it was in 2005, when England defeated Australia in arguably the best series ever to regain the coveted Ashes trophy, but that Ashes series was the last cricket to be shown on English terrestrial television, and when the rights reverted to Sky and satellite companies (satellite TV being far less ubiquitous in the UK than cable is in the US), the extra money paid by Sky was readily received, but cricket itself was dealt a significant blow and has really fallen down the pecking order of sports popularity in the UK, both in terms of people watching it on TV and regarding the number of young people taking up the game.

Where do you think all of this is going?
 

Infield Infidel

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Jul 15, 2005
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College football conferences seem petrified about the next swing of rights deals. They went up pretty fast but ESPN has obviously slashed costs, and no one knows how much NBCSN is interested. If Amazon, Netflix, et al don't get into the bidding, the money will probably go down. They have hedged a bit by creating their own networks, but those usually don't have first-tier rights
 

ifmanis5

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Sep 29, 2007
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Here's an ad for the new ESPN+ streaming service.

It lists MLB, for which ESPN is a rights holder. But also NHL which it does not. NBA not listed even though ESPN is a rights holder. I'm confused. It's a whole new world.
 

OCST

Sunny von Bulow
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Jan 10, 2004
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College football conferences seem petrified about the next swing of rights deals. They went up pretty fast but ESPN has obviously slashed costs, and no one knows how much NBCSN is interested. If Amazon, Netflix, et al don't get into the bidding, the money will probably go down. They have hedged a bit by creating their own networks, but those usually don't have first-tier rights
they should be worried, since player salaries keep escalating, as the news keeps telling us.
 

Couperin47

Member
SoSH Member
The utter balkanization of media is driving people to insanity: it seems unlikely there will ever be true ala carte availability and if it did arrive many if not most channels would get greedy and ask too much (thanks to inflation we'll get $8-$12erd instead of nickle and dimed. Already we have a thread here where folks try and figure out what magical combo of OverAir, Internet and Amazon/Netflix type services can give them everything they want. Then there are folks like me where OverAir was never a possibility so it all via the Net or Cable.

Pretty much anyone with even a bit of savvy, if not offered one or two aggregator options and reasonable prices will either give up and give their cable company the $200/mo most demand or are going to pirate everything they can...and that's most of this stuff.
 

mauidano

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Aug 21, 2006
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Here's an ad for the new ESPN+ streaming service.

It lists MLB, for which ESPN is a rights holder. But also NHL which it does not. NBA not listed even though ESPN is a rights holder. I'm confused. It's a whole new world.
Relative to MLB, how will this apply to "blackout games" in your market? ESPN does not "blackout" MLB games but MLB TV network does. How does YouTube with their live sports figure in?
 

scottyno

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Dec 7, 2008
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Relative to MLB, how will this apply to "blackout games" in your market? ESPN does not "blackout" MLB games but MLB TV network does. How does YouTube with their live sports figure in?
With MLB and NHL you're really just buying MLB TV or NHL Center Ice through them, so you'll be blacked out of any local market games. I'm not sure what the point is since it's not any cheaper through espn instead of just buying through mlb or nhl.