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Parks: U.S. Sports Subscription Streaming Revenue to Top $22.6 Billion by 2027 — Up 73% From 2022
January 11, 2023
As live sports migrate toward over-the-top video distribution, so too will viewers and their discretionary spending.
According to Parks Associates’ latest research, annual sports streaming subscription revenue in the United States was $13.1 billion in 2022 and will almost double to approximately $22.6 billion in 2027, a 73% 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.
Indeed, the report contends the average streaming sports fan will spend $20 monthly accessing live sports via over-the-top video distribution.
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 TV+ recently announced a 10-year deal with Major League Soccer.
“Sport media rights holders want to get games in front of as many eyes as possible,” Jennifer Kent, VP of research at Parks, said in a statement.
Kent contends that the audience reach of online-only and streaming services is enormous. To compete with the streaming titans such as Prime Video, Netflix, HBO Max, Peacock and Paramount+, 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,” Kent said.