If you are reading this article, you’re likely planning to watch the Super Bowl this Sunday along with an expected record-breaking number of people.
But unless you’re among the lucky fans inside the stadium in New Orleans, you’ll be watching the game courtesy of a traditional broadcaster or through streaming.
The NFL has long been a TV staple on major U.S. networks like ABC, CBS, NBC and Fox — the host broadcaster of this year’s big game. However, the rise of cord-cutting is accelerating at an annual rate of 7.5 per cent in both the U.S. and Canada, according to Bloomberg, as more viewers shift to streaming services such as YouTube TV, Netflix, Amazon Prime and Fubo.
Live sports remain one of the main reasons consumers hold onto traditional broadcast packages — but this rationale could become outdated soon. Increasingly, major streaming companies are winning sports media rights contracts, gradually luring audiences toward digital platforms.
It’s a cross-border phenomenon too. While NFL fans in Canada can access Amazon Prime’s weekly NFL game through domestic broadcasters, Canadian hockey fans need a Prime subscription this season to watch marquee NHL games on Monday nights.
The shift to streaming isn’t a new concept, but adding live sports into the equation is increasing momentum away from linear television as more people embrace connected TV. Even as the parent companies of traditional broadcasters launch their own streaming services or purchase existing ones, advertising revenue is playing a major role in shaping the future of these businesses.
Following the money
As consumers migrate to major streaming platforms, advertisers are following suit. Ad revenue on connected TV in Canada and the U.S. has seen significant year-over-year growth, driven in part by the rising popularity of live sports on streaming services.
As more games are shown on digital platforms, advertisers are ramping up their investments to reach engaged audiences in real time.
The shift away from linear television allows streaming companies to be more creative in how they charge for subscriptions, whether through ad-supported options or premium prices for ad-free streaming.
Even as streaming prices increase, in part due to rising content costs, there does not appear to be a drop-off in subscribers. Netflix, which now streams professional wrestling and hosted the lucrative Mike Tyson vs. Jake Paul boxing match, gained 19 million new subscribers during the last fiscal quarter of 2024 — the company’s largest-ever jump for a three-month period.
The aphorism that “content is king” may be cliché at this point, but the logic still holds for movies and series — and could become more prescient as more leagues make deals with streamers.
Conversely, traditional broadcasters are struggling because consumers are leaving alongside advertisers. Since traditional broadcasters largely depend on ad revenue to operate, this poses an existential threat to their business model.
And advertisers are leaving for a much better deal. In 2024, brands spent $30 billion US on streaming ads in the U.S., compared to $60.5 billion US for traditional broadcast ads according to NPAW. Streaming services also offer more sophisticated insights that allow advertisers to target their desired customers.
Streaming’s global reach, along with the data that can be mined and the precision with which advertisers can target consumers, are key drivers behind its investment in sports media rights.
So, as you settle in to watch the Super Bowl, the prospect of it being streaming-exclusive in the future is more viable than a standard prop bet on the big game.
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