U.S. sports media rights value to reach $30B by 2025
The total value of sports media rights in the U.S. across TV and streaming will surpass $30 billion by 2025, according to data from S&P Global Market Intelligence.
Why it matters: The inclusion of deep-pocketed tech giants like Apple and Amazon bidding for sports rights has driven the price sky-high.
- A slew of key deals up for renewal in the next few years, including the NBA and NASCAR, will only drive the price up further.
By the numbers: The NFL's new TV deals with Fox, Paramount and Disney kick in this fall. Including its "Thursday Night Football" deal with Amazon, the 11-year contracts are worth more than $110 billion.
- Also starting this fall is the league's seven-year deal with YouTube for Sunday Ticket, for which the online video giant is paying $2 billion a year.
What's next: Now that the NBA has agreed on a new collective bargaining agreement with its players, negotiations with Disney and Warner Bros. Discovery on new TV deals are expected to begin in earnest.
- Disney and WBD have an exclusive negotiating window until early next year.
- The new CBA includes the implementation of an in-season tournament, which gives the NBA a chance to sell as a separate TV or streaming package.
💭 Tim's thought bubble: It's getting harder for media companies, especially those tied to the fading cable TV bundle, to justify these high prices. This threatens to push sports into a subscription-based environment.
- Sports leagues will be faced with a choice: Reach the biggest audience, or get the most money. They may no longer be able to get both.