COVID-19 and the Vulnerability of Pure Play Sports Streaming Services
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The postponement of annual competitions and major quadrennial events has highlighted just how heavily pay-TV and sport-centric streaming services’ value propositions rely on live sports. Filling schedules with re-runs, docuseries, interviews and archived footage are stopgaps unlikely to increase engagement. Justifying a sports video streaming subscription is now tougher for consumers than ever. In the saturated attention economy, sports streaming services now face increased competition for audience attention and the coronavirus global pandemic leaves them particularly susceptible to subscriber churn. Streaming insurgents that overextended in securing now-dormant rights will have an even harder time recouping these investments in the face of an impending economic downturn.
Companies and brands mentioned in this report: 2020 Tokyo Olympics, Amazon, Amazon Prime Video, Apple, Bundesliga, Comcast, COVID, Crave TV, DAZN, Discovery, Disney, Disney+, Ditto TV, Eleven Sports, EPL, ESPN, ESPN+, Eurosport Player, Facebook, FIFA, FloSports, Foxtel, GolfTV, illico.TV, Intsagram, iRacing, Kayo Sports, La Liga, Madden, MediaPro, MLB, MLS, MLS, MOTD, Nascar, NBA, NBCUniversal, Netflix, NHL, Peacock, Serie A, Six Nations, UEFA Euro 2020, UFC, US Masters, WWE