Free Streaming and Sports
In June 2023, I wrote a piece about the state of sports in free streaming). At the time, I diagnosed four issues:
- A supply-versus-demand mismatch
- The slow rise of premium brands
- A lack of live programming
Then, the second half of 2023 saw the launch of numerous premium brands and the rise of exclusive deals. What has happened in the FAST sports landscape since then? Let’s find out.
The Launch of Sports-Focused Aggregators
In June 2024, former SportsTribal executives Joe Nilsson and Amory B. Schwartz launched C15 Studio to build a multichannel network of
FAST channels in partnership with leading global sports properties. The venture is backed by KB Partners, Raptor Group, Sharp Alpha Advisors,
and, most recently, Eberg Capital. C15’s channel roster includes Formula 1, One Championship, Triton Poker Series, and the Professional Squash Association (with SquashTV).
Free streaming has played a minor role (so far) in sports rightsholders’ revenue mix. Figure 1 shows how Formula 1 makes money.
This is why it makes sense to rely on a channel production company like C15. Other examples of this trend include Lights Out Sports TV (introduced in May 2024) and Free Live Sports. The latter was launched by co-founders and partners Cathy Rasenberger of Rasenberger
Media, Geoff Clark of acTVe, and Ryan James and James Patrick of OTT Studio.
Together, they’ve formed the joint venture Sports Studio, Inc. and recently acquired the U.K.-based SportsTribal platform. The partners
are utilizing that E.U.-centric free sports streaming platform to build Free Live Sports, which launched as a standalone app in 75 countries.
The initial rollout includes Roku and Fire TV, with more ecosystems in the works (e.g., Vizio, Apple, Android, etc.). Currently, 68 channels
are live, with 34 more coming. Historically, DAZN was focused on subscription business models, but it has recently made several moves in free streaming with the introduction of a free tier, its own suite of FAST channels, and the aggregation of third-party FAST channels.
After a busy 2023, it’s been quieter on the new-launch front this year. Existing channels are focused on growing their distribution networks. However, we still witnessed several chan- nel launches:
- NBA: I was waiting for this one. Europe next, please.
- AHL: Here, you can watch live American Hockey League games through the Los Angeles Kings affiliate, the Ontario Reign.
- ATP Media’s Tennis TV launched Tennis TV Classics on Samsung TV Plus in seven markets.
- The Big 12 college sports conference aims to widen national coverage with its FAST channel.
- Sportworld rolled out channels for Euro 2024 (Insight Zone: EURO 2024 and Insight Zone EURO 2024—Team Germany).
- In August 2024, Sky Sports launched its first FAST channels: Sky Sports Stories, Sky Sports Classics, and Sky Sports Vault.
- The Roku Channel introduced the owned-and- operated Roku Sports Channel.
- FanDuel rolled out a sports betting FAST channel. FanDuel SVP and executive producer Kevin Grigsby said, “Launching ‘FanDuel TV Extra’ was another important step in expanding distribution for FanDuel TV content and reaching new audiences. Our research showed a large portion of our target audience already consume content on FAST. Airing over 12 hours of live sports a day that can be wagered on significantly differentiates our channel in the market and allows us to reach a new cohort of passionate sports fans and bettors.”
More Free Streaming Platforms Are Buying Sports Rights
Roku landed exclusive rights to MLB Sunday Leadoff (which used to sit with NBC). “With free games available to anyone, MLB games on Roku will be widely accessible to fans,” said Noah Garden, MLB’s deputy commissioner for business and media. “Since Roku serves as an entertainment gateway for millions, this partnership offers a valu- able new promotional and distribution platform for MLB games and content.”
We’ve also seen the first sponsorship deals be- tween sports teams and free streaming platforms in a move to build brand awareness among sports fans, as evidenced by Pluto TV’s sponsorship deal with German soccer team BVB.
AI
According to YouGov’s The Global Sports Media Landscape report, the demand for sports is worldwide, with more than two-thirds of global consum- ers (67%) following sports on a regular basis (i.e., in the last 30 days) via various media platforms.
Going global is hard for sports, given how fragmented rights are. You need to launch localized channels from a rights perspective (with a different set of programs and live events), and then comes the content localization work.
The Tennis Channel struck a deal with Lingopal to have its live matches dubbed into Spanish in real time for its viewers in Spain. The impact of AI in the sports landscape will go beyond localization. The trend didn’t go unnoticed by SportsPro, which held its first AI summit in September 2024.
What’s Coming Next?
To boost channel launches, increase viewership, and improve monetization, platforms must put more focus on their sports category. Here’s how:
- Bridge premium and free offerings: If your ecosystem carries subscription sports applications, why build a wall between the app and the channel? Free streaming will always be only one piece of the equation for sports organizations. It’s time to build ecosystems regardless of the business model.
- Prominence: More often than not, the “Sports” category is relegated to below the fold. I get it— platforms may not have enough channels yet to showcase the category prominently. But you have to start somewhere.
- Marketing: Platforms must figure out how to create appointment viewing habits when it comes to live events. This has started on Samsung TV Plus with promo visuals that have a day and time included.
It’s great to see the sports category growing and experimenting, because the genre will be key to the growth of free streaming TV as a whole (just like it is vital for broadcast TV). However, the model still needs some finessing to become a bigger piece of the revenue mix for sports organizations.