{"id":551946,"date":"2022-08-01T13:45:46","date_gmt":"2022-08-01T13:45:46","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/01\/the-titans-of-big-tech-are-getting-into-live-sports\/"},"modified":"2022-08-01T13:45:46","modified_gmt":"2022-08-01T13:45:46","slug":"the-titans-of-big-tech-are-getting-into-live-sports","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/01\/the-titans-of-big-tech-are-getting-into-live-sports\/","title":{"rendered":"The titans of big tech are getting into live sports"},"content":{"rendered":"

<\/a> T<\/strong>he titans of big tech are getting into live sports: <\/strong>Tech giants like Apple and Amazon, who already have a hand in the streaming game, have been busy planning their entry into live sports broadcasting, and are now going toe-to-toe with traditional broadcasters to get the rights to screen major sports competitions like the National Football League, Major League Baseball, and Formula One racing, the New York Times<\/a> reports.<\/p>\n

It hasn\u2019t been a great year for streaming<\/strong> as increasing competition and the rising cost of living put pressure on providers. Netflix, the biggest streamer in the world, lost more than 1 mn subscribers q-o-q in 2Q 2022 and announced job cuts as rivals gain ground. It's not just Netflix that has been losing subscribers, though: Consumer data from the UK<\/a> shows that users canceled 1.66 mn streaming services in the second quarter alone due to an inflation-fueled squeeze on household budgets.<\/p>\n

But streaming services are pivoting to the sports market: <\/strong>Tech companies are now looking to overtake US cable companies like DirecTV for the rights to broadcast major sporting events and overcome some of the challenges in the industry by adding sports entertainment to their offerings. Right now, sports comprise 95 of the 100 most viewed programs on US TV and are considered one of the safest ways to expand a base of paying subscribers.<\/p>\n

And they\u2019re going all in: <\/strong>Apple has already agreed to double the figure US Major League Soccer (MLS) typically charges for annual rights in the form of a 10 year USD 2.5 bn transaction that would give Apple the global rights to some 1k games. Amazon, meanwhile, signed off on a USD 1 bn agreement to broadcast weekly NFL games in addition to placing a USD 100 mn bid for the annual rights to show Formula One races in the US \u2014 which it ultimately lost to ESPN who renewed their rights for the agreement at a staggering 15 times the value of its previous contract, according to Sport<\/a>s Business Journal<\/a>.<\/p>\n

This isn\u2019t totally a new thing:<\/strong> Amazon Prime has been screening a limited number of Premier League games in the UK since 2019 and will start screening Champions League games<\/a> from 2024.<\/p>\n

The live sports market is super hot right now:<\/strong> Media companies are expected to dish out about double what they spent on live sports a decade ago, according to the NYT. Major media players like Disney, Comcast, Paramount, and Fox are projected to spend some USD 24.2 bn on rights to broadcast sports in 2024.<\/p>\n

Tech\u2019s entry into sports broadcasting is spooking traditional entertainment companies <\/strong>who worry that they won\u2019t be able to compete against companies that \u201caren\u2019t playing by the same financial rules,\u201d former CEO and chairman of the Walt Disney Company, Bob Iger, told the Gray Lady.<\/p>\n

Cable television in the US has been steadily losing out to streaming services:<\/strong> Cable television has lost some 25 mn paying customers, or a quarter of their subscribers, since 2015, according to MoffettNathanson, an investment firm that tracks the industry.<\/p>\n

This all comes despite traditional wisdom in the streaming industry that once shunned sport: <\/strong>Netflix CEO Reed Hastings had famously<\/a> dismissed sports and news because they were never watched more than once \u2014 a view shared by others in the industry until recent challenges prompted a re-think.<\/p>\n

But some believe cable isn\u2019t over just yet:<\/strong> Cable television typically offers the largest audiences (some 100 mn at their peak) which is a significant factor in many of these sports leagues\u2019 calculations who find reach to be essential to maintaining long term interest in their sport. \u201cMost sports and media executives predict that the league will stick with traditional broadcasters for most of its games,\u201d according to the New York Times.<\/p>\n

Cable companies are ready to fight back:<\/strong> US cable companies are facing off with tech giants by spinning out their own in-house streaming services that might potentially keep tech-owned streaming services away from their market. Over the past few years companies like Comcast and ESPN attempted to build out their own streaming platforms but have struggled to attract a decent number of their cable viewers over to streaming.<\/p>\n

Tech companies might be better off looking elsewhere for new subscribers: <\/strong>As long as US sports leagues look to stay put with their traditional broadcasting infrastructure Amazon and Apple might find better luck looking to Europe, where football leagues sell rights in more frequent intervals every two to three years.<\/p>\n","protected":false},"excerpt":{"rendered":"

The titans of big tech are getting into live sports: Tech giants like Apple and Amazon, who already have a hand in the streaming game, have been busy planning their entry into live sports broadcasting, and are now going toe-to-toe with traditional broadcasters to get the rights to screen major sports competitions like the National […]<\/p>\n","protected":false},"author":1,"featured_media":551947,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9595],"tags":[633,162,639,9242],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-551946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whats-next-2","tag-enterprisepm","tag-sports","tag-technology","tag-whats-next","wpautop","entry"],"acf":{"mongo_id":"16ff8dab-ce2f-4c89-9de0-ef3b6d9083b4","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/8\/477.jpg","photo_position":"above","related_issue":[551936],"teaser":"","voice_url":""},"yoast_head":"\nThe 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A single-stock ETF tracks the performance of one particular stock as opposed to following the highs and lows of an index with traditional ETFs, and delivers the factor of each stock\u2019s\u2026","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/499.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":587050,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/21\/netflix-is-slowly-growing-its-ad-supported-subscriber-base-g7-sets-up-govt-level-discussions-on-ai-developments-and-regulation\/","url_meta":{"origin":551946,"position":4},"title":"Netflix is slowly growing its ad-supported subscriber base + G7 sets up gov\u2019t-level discussions on AI developments and regulation","author":"enterpriseam admin","date":"21 May 2023","format":false,"excerpt":"Netflix is happy with its \u201ccrawl, walk, run\u201d approach, but advertisers want more","rel":"","context":"In "FOR YOUR COMMUTE"","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1139.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":582575,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/10\/which-streaming-platform-is-right-for-you\/","url_meta":{"origin":551946,"position":5},"title":"Which streaming platform is right for you?","author":"enterpriseam admin","date":"10 March 2023","format":false,"excerpt":"We live in the age of the streaming platform: Long gone are the days of waiting all week for the next episode of your favorite show: Binge-watching is now the norm. That prompted a massive pivot away from paid satellite TV in MENA (or \u201cdirect to home,\u201d in industry-speak) and\u2026","rel":"","context":"In "THE ENTERPRISE GUIDE"","block_context":{"text":"THE ENTERPRISE GUIDE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-enterprise-guide\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/Streaming-Platforms-x1600.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/551946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=551946"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/551946\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/551936"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/551947"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=551946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=551946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=551946"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=551946"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=551946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}