The 2024 Summer Olympics has provided summer entertainment we didn’t know we needed. Peacock is probably having similar sentiments. The Paris Olympics will provide a litmus test for the future of Olympic broadcasting as the first "normal" Summer Games since Rio 2016, unencumbered by pandemic-related restrictions, to gauge how the shift to streaming will impact one of the world's premier sporting events. My bet is that Peacock will be reporting a significant increase in viewers, not to mention subscribers. 

In recent years, the landscape of live sports viewership has undergone a seismic shift. As traditional cable subscriptions continue to decline, streaming platforms have emerged as the new frontier for sports fans, offering unprecedented access and flexibility. This digital revolution is not just changing how we watch sports, but it's also expanding the audience and transforming the business model of sports broadcasting.

The Rise of Streaming in Sports

A 2023 survey revealed that 39% of U.S. sports fans now primarily watch live sports through streaming services, a significant increase from 30% just two years earlier. This trend is particularly pronounced among younger viewers, with a staggering 80% of sports fans aged 18-34 using streaming services to watch live sports at least once a month.

This shift hasn't gone unnoticed by major players in the streaming industry. Amazon and Apple have made bold moves to secure their place in the sports streaming arena. Amazon Prime Video's acquisition of exclusive rights to NFL Thursday Night Football games, in a deal worth about $1 billion per year starting in 2022, not to be outdone, Apple TV+ secured a 10-year deal with Major League Soccer (MLS) worth $2.5 billion, commencing in 2023. Meanwhile, NBA secured an 11-year contract deal with Disney/NBCU and Amazon and Roku announced the launch of its new premium 24/7 sports channel.

Perhaps all this sports spending is cutting into the streamers’ budget for other forms of entertainment where we’ve seen pullbacks. In the long run, the financial implications should pay off. The global sports streaming market, valued at approximately $18.1 billion in 2020, is projected to skyrocket to $87.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 21.3%. This explosive growth reflects not just the increasing popularity of streaming services, but also their ability to monetize sports content effectively.

Diversification of Niche Sports Content

One key strategy employed by streaming platforms is the diversification of sports content. While securing rights to major leagues remains a priority, platforms are increasingly looking beyond traditional powerhouse sports. They're acquiring rights to niche sports, college athletics, and international competitions, catering to a broader range of interests and potentially cultivating new fan bases. 

Moreover, streaming services are not content with merely broadcasting live events. They're investing heavily in original sports-related content, producing documentaries, behind-the-scenes shows, and analysis programs. This approach not only complements their live offerings but also keeps viewers engaged between games, creating a more immersive sports ecosystem.

An Answer to AI

In addition to sports moving over to streaming platforms, I expect an organic increase in live sports as a paradoxical response to the increasing use of AI in not only entertainment, but in our everyday life. Live sports uses real people, real emotions, with an uncertain outcome. This is why we tune into gymnastics sitting on the edge of our couch. Will he choke? Who will cry on the podium? These are real moments experienced by real people in real time.

As they say, I laughed, I cried, it was better than Cats.

As we look to the future, it's clear that the growth of streaming in sports is more than just a trend – it's a fundamental shift in how sports content is consumed and monetized. Traditional broadcasters are adapting, often launching their own streaming services, while tech giants and startups alike vie for a piece of the lucrative sports streaming pie. For sports fans, this revolution promises greater access, more diverse content, and innovative viewing experiences.