Forecast: US sports OTT revenues to double by 2027
January 12, 2023
By Colin Mann
According to Parks Associates’ research, annual sports OTT subscription revenue in the US was $13.1 billion (€12.2bn) in 2022 and will almost double to approximately $22.6 billion in 2027, a 73 per cent increase over the next five years. The new industry report, OTT & Sports: Services and Strategies for Growth, 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 has agreed 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,” notes Jennifer Kent, VP, Research, Parks Associates. “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.”
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 US, 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,” suggests Kent.