Sports rights: Titans chipping away major live sports from broadcast the harbinger of a new streaming era?

By Shaun Lim

We all love a good story, or two. For many people, the emotions-stirring stories online video content tells is the perfect distraction from the rigours and grind of their daily lives. According to data collected by Statista, there were over three billion internet users watching streaming or downloaded video at least once per month in 2023. OnlyAccounts.io went further to present data showing that viewers, on average, watched 17 hours of online video content per week in 2023.

While myriad sources make up the content consumers devour — including popular, free, short-form platforms such as YouTube and TikTok — it is hard to ignore to view the video industry as anything but a lucrative enterprise with the potential to get even bigger.

Predicting ample growth opportunities for the video industry in 2025, Michael Lantz, CEO, Accedo, wrote recently in a blog post, “Most of the larger streaming services have now managed to break even; a huge milestone after many years of investment. Even more impressively, many have done so by both increasing revenues as well as lowering costs.

“It’s encouraging to see that consumers seem more resilient than previously thought and despite significant price increases, most choose to keep their subscription services.

“At the same time, we’re seeing that new advertising-funded business models for subscription video-on-demand (SVoD) services resonate with budget-conscious consumers and offer a good stepping stone into becoming full premium subscribers.”

He went on to identify key trends that have the potential to shape the streaming industry in 2025, including the stabilisation of advertising revenue. 

According to Lantz, while the advertising growth for video-on-demand (VoD) services has registered healthy double-digit growth over the past decade, this has not been sufficient to compensate for the decline in the traditional linear TV advertising business for many broadcasters and networks.

However, a healthy overall streaming business trend is providing grounds for optimism, as he predicted, “I believe that many companies will see their advertising revenues start growing again. While the overall revenue growth won’t be material and likely to be in low single digits, it is a clear indication that the worst is behind.

“Ad-funded broadcasters will have better opportunities for increasing investments and focus on growth rather than the cost-cutting we’ve seen over the last two years.”

While Lantz believes that the TV industry is “far away” from having video advertising as a significant growth driver, the ad-supported business model may be worth keeping tabs on in 2025. 

Many eyes then, will turn to Netflix, and what the streaming titan does in the coming months. 

When announcing that it had exceeded the staggering 300-million mark in terms of global subscribers at the start of 2025, it is worth noting that of these, Netflix’s ad-supported tier contributed 70 million subscribers.

For context, Netflix’s ad-supported tier was launched in November 2022 and is currently available in only 12 countries around the world. Australia, Japan, and South Korea are the only three countries in APAC who have access to this service.

It would appear a significantly lower subscription fee is more than enough compensation for the ‘inconvenience’ of watching ads. In the US, the ad-supported plan costs US$6.99 monthly, which is less than half the US$15.44 cost for the Standard plan.

The continued success of Netflix’s ad-supported tier is likely to have far-reaching repercussions, and could open the door to more opportunities for free advertising-supported streaming television (FAST), advertising-based video-on-demand (AVoD) and other ad tier services.

Sports and streaming – A match made in heaven?

Where once sports was the exclusive domain of pay-TV, it has arguably been transformed into a game changer for video streaming in recent years.

Apple TV has exclusive rights to stream Major League Soccer (the professional football league in the US), while Amazon has invested in the National Football League (NFL), cricket, selected matches from the English Premier League, and has acquired National Basketball Association (NBA) rights from the 2025 to 2026 onward.

According to Ampere Analysis, the combined spending of all streamers on sports rights in 2025 will reach US$12.5 million, one fifth of the global annual TV spend, largely driven by the expanding sports budgets of Amazon and Netflix.

While considered frivolous by some, the boxing match on November 15, 2024, between Jake Paul and Mike Tyson, streamed live on Netflix, garnered 65 million streams. 

The World Wrestling Entertainment (WWE), ushering in a new streaming era, signed a 10-year contract to the tune of US$5 billion with Netflix, granting the latter exclusive rights to WWE shows. 

No matter what you think about WWE, and whether the “sports entertainment” company’s brand of wrestling can legitimately be classified as sports, it would appear that Netflix’s investment is paying immediate dividends. 

Since debuting on Netflix this January, Raw, one of WWE’s flagship events, has averaged 3.29 million views per week for new episodes. A quick look at the Top 10 watched shows in Singapore found Raw comfortably ensconced in the list.

Netflix is not done, apparently. The company is reportedly considering a bid for the US rights to Formula One racing when the current deal with ESPN finishes at the end of this season. Is it only a matter of time before a major sports league moves completely onto a streaming platform?

In Asia, where the English Premier League enjoys fanatical support, such a move could prove to be seismic and forever change the landscape of sports streaming.

Accedo’s Lantz believes this is a sustainable, long-term strategy. “It is, of course, clear that live sports will increasingly be streamed rather than broadcast. It’s also clear that much of this content is extremely valuable, and rights for it will continue to be very expensive.

“We’re also seeing clear user attraction, where subscriber update from new sports rights is substantially driving revenue growth in a seemingly attractive way.

“However, while this will certainly add value for some viewers, it is an incredibly expensive way to add consumer value. Super fans generally move with the content, and it doesn’t necessarily lead to a long-term improvement in the subscriber base.”

Unlike more traditional VoD assets, which generate value for a long time as part of a library strategy, he sees sports assets losing their value once a season concludes, leading to potential churn. 

With no long-term benefit to justify the substantial financial layout, Lantz sees some VoD providers who have experimented with sports rights abandoning this strategy. Or, at least, evaluating a better way of structuring the content to maximise its value, including introducing separate ‘sports subscription tiers’.

“Such special subscriber tiers have historically been the norm when pay-TV controlled most of the premium sports rights,” he explained.

Positioning the video streaming industry for further growth 

Other trends Lantz identified include smarter content packaging and a focus on user experience (UX) and personalisation.

According to Lantz, all video services depend on “hero content”, or high-impact, attention-grabbing content designed to make a lasting impression and drive engagement. High-value content with slower refresh rates, like movies and sports, leverages promotional efforts and clear communication, he explained.

Services offering lower-value, higher-volume content, such as kids’ shows or documentaries, meanwhile, should focus on personalised discovery tools and search functionality. “Packaging content and tailoring UX are key to maximising value,” Lantz added.

He recommended strategies such as including early access for fans willing to pay a premium for next episodes or seasons; or offering staggered release schedules, where premium-tier subscribers access new content earlier than lower-tier users, which enhances pricing power while catering to cost-conscious consumers.

Thematic packaging is also an increasingly appealing option, particularly for mature services with extensive libraries. This includes creating lower-cost subscription tiers for kids’ programming, documentaries, or specific language content, which can attract consumers hesitant to commit to full-scale services.

Such innovation in content packaging and pricing, Lantz said, will be essential to deliver value, sustain engagement, and drive growth for long-term success.

The future of the video streaming industry appears to be bright, provided its key stakeholders are prepared to invest in the future. 

“As the industry has pulled itself into overall profitability, it’s time to start an experimentation to deliver more value for the right price to keep consumers engaged while continuing to grow,” Lantz concluded.