Annual US sports OTT subs revs rocket as 87% of homes stream | Media Analysis | Business | News | Rapid TV News
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Sports will be a key arena for US OTT providers to gain subscriptions and according to research from Parks Associates, annual OTT sports subscription revenue will almost double to approximately $22.6 billion in 2027, a 73% increase over the next five years.
Parks ott sports 13Jan2023
The OTT & Sports: Services and Strategies for Growth report examined key trends in sports content and the pay-TV sports media landscape, OTT sports services, direct-to-consumer trends, and the sports fan viewing experience. It found that traditional pay-TV is losing its stronghold on sports media rights while streaming providers, in search of original and exclusive content, are looking to live sports to attract and maintain their user bases.

A prime example of the latter is Amazon gaining rights to the NFL’s Thursday Night Football on Prime Video and Apple’s 10-year deal with Major League Soccer (MLS).

“Sport media rights holders want to get games in front of as many eyes as possible,” commented Parks research VP Jennifer Kent. “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.” “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.”

As it was making its analysis on the OTT sports market, Parks also released data showing shows 63% of US internet households now own a smart TV, up from 38% in 2015, while 87% of these homes have at least one streaming service.

The OTT Video Market Tracker study also noted that when consumers are considering a smart TV purchase, they value interoperability, compatibility, and ease of use within an ecosystem more than they value single-point functionality. Connected device owners now have an average of 16 connected devices in the home, and the desire for a single access control point is at the top of their wants.