Annual sports OTT subscription revenue in the United States was US$13.1 billion in 2022 and will almost double to approximately US$22.6 billion in 2027, a 73% increase over the next five years, according to Parks Associates’ latest research. The new industry “OTT & Sports: Services and Strategies for Growth” report examines key trends in sports content and provides an overview of the pay TV sports media landscape, OTT sports services, direct-to-consumer trends, and the sports fan viewing experience.
The report notes traditional pay TV is losing its stronghold on sports media rights. Streaming providers, in search of original and exclusive content, are looking to live sports to attract and maintain their user bases. For example, Amazon now has the NFL’s Thursday Night Football on Prime Video, and Apple recently announced a 10-year deal with Major League Soccer (MLS).
“Sport media rights holders want to get games in front of as many eyes as possible. The audience reach of online-only and streaming services is enormous. To compete with the digital titans, media conglomerates with conventional and online services are shifting finances and resources to launch, improve, and develop streaming services targeted at sports fans,” said Jennifer Kent, VP of Research at Parks Associates.
“OTT & Sports: Services and Strategies for Growth” follows the sports consumer’s experience as it moves online and away from traditional pay TV, driving yet another sector of the pay TV demographic to cut the cord. According to the research, there are more than 50 specific sports OTT services in the United States, creating market fragmentation and competition to attract sports fans.
“There has always been intense competition for sports-related content, but the disaggregation of content delivery with the growth of streaming services is pouring fuel on the fire,” Kent concluded.