Hey Sports Tech fans,
A bumper week in the world of sports tech.
The bidding wars we have seen for sports rights has seen the total value globally almost double to $38 billion in 2018 compared to 2012.
This shows the importance of live sports in the content wars we have seen happening between traditional players and the new kids on the block in terms of technology companies.
On the back of last week’s main piece of the sports rights market nearing its peak it will be interesting to see how these figures trend over the next few years. With the major US sports up for new negotiations in the early 2020’s you would expect those rights to go up, but there is pressure on the figures paid as companies are beginning to be fearful of over paying. You can see this play out in a slight decline in the price paid by Sky and BT Sports for UK rights for Premier League rights in 2018 for rights covering 2019-2022.
This has been coupled with the two parties agreeing distribution deals with each other for each others service on their TV networks. This likely as a result of then realising that pressure is coming from outside forces like Amazon who have purchased rights for the Premier League in the same period.
The scheduling of games where Amazon are now involved has drawn criticism from supporter groups around England as there will be 4 different kickoff times the day after Christmas with those games on at 8pm falling foul of no rail services.
With fans being squeezed attending the matches with difficult timing as well as fans wanting to watch games on TV now having to pay for three services, we might be seeing the start of a shake up in the way TV rights are done for leagues like the Premier League.
With La Liga launching their own channels in the UK to act as a home for Spanish football, I think other leagues around the world will start to look at doing their own TV deals and OTT services as they look to provide a more streamlined solution to their fans and begin to realise the huge upside that is there for them if they own the fan relationship from start to finish and all the data that comes with it.
Have a great sporting weekend.