Sports Streaming: How the Netflix Model Is Winning Cable TV

Sports Streaming: How the Netflix Model Is Winning Cable TV

By 2017, the Super Bowl has proven a trend: more and more people are failing to follow sporting events on traditional TVs and moving on via Smart TVs, computers and smartphones. The audience of the 51st edition of the world’s largest sports event via streaming reached 1.72 million viewers per minute, 23% higher than 2016 (1.42 million), and 115% higher than in 2015 (800 thousand).

The numbers show that the economy of recurrence is definitely winning over sports fans. And there’s more. According to a survey by the Center for the Digital Future of the University of Southern California’s communications and journalism school, 63% of people would pay to have sports streaming channels. Of these, 56% are willing to shell out a larger amount for streaming channels compared to what they spend on cable TV channels.

Cable TV has been facing a great deal of rejection from consumers. According to a survey conducted in April 2016 by the MeSeems Institute, in partnership with Exame, 55% of pay-TV subscribers consider the monthly fee very expensive for the content offered. Package values range from $ 50 to $ 150, while the cheapest Netflix package costs $ 19.90.

Based on this, 26% of cable TV customers wanted to cancel it over the next six months and 33% were in doubt whether they did so or not. In the case of Netflix, that number was only 3%.
Market giants are eyeing recurring sports streaming. For consumers, any choice taken correlates with more monthly expenses. But along with the expansion of the Internet to various aspects of life, online loan options can be taken to overcome related financial problems. If you don’t have enough money to pay for your cable TV bill, you can apply here to get fast loan. Finding personal loans online is one of the modern lifestyles and the Internet is certainly the best source for every emergency loan.

Big companies are eyeing the streaming sports market. Even, Disney CEO Bob Iger has announced an ESPN application for broadcasting sporting events. ESPN +, as it’s called, is slated for release in the second and third quarters of 2018. ESPN has been part of Disney since 1995. It was not announced what the prices and forms of payment will be. But Bob Iger has ensured that since it will have less content, it will be cheaper than Netflix’s subscription and other services.

One of the big reasons for ESPN to bet on new markets is the loss of subscribers and consequently income. Between 2013 and 2015 the US broadcaster lost about 7 million customers in the United States, which represented $ 1.3 billion in revenue. If we go back a little more, until 2011, the number scares even more. That year was 100 million subscribers. In 2017 it’s 87 million.

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The situation is not exclusive to ESPN or the United States. The decrease in the number of subscribers in all cable TV services in the world is high. For example, by 2014, Indonesia had 19.6 million service subscribers. In May 2017, that number was 18.6 million.

Amazon has invested a lot of money in football and tennis

This was not the first move of a major global company to settle in the world of sports streaming. Amazon, by the end of September 2017, had begun broadcasting NFL games through Prime Video to its subscribers in over 200 countries reaching an audience of 370,000. In all, the online retail giant has negotiated with the United States Football League to broadcast 10 games of Thursday of the regular season. The values of the agreements, however, were not disclosed. From the facts above we can conclude that the cable TV business remained attractive in the eyes of giants despite the fact that it experienced a large decline in several countries.