The world of sports entertainment evolves rapidly, and with it evolves the way it’s broadcasted. The day television entered the scene, action teleported from stadiums to living rooms. And today, with the rise of digital streaming platforms, it follows us wherever we are. 

Besides redefining how the fans engage with sports, the rise of streaming platforms has opened up new horizons for athletes, sports teams, and leagues to generate money, which, in turn, has helped sports rise in popularity and garner global appeal.

To better understand how the industry continues to change and what these changes mean for potential investors, let’s explore the early days of sports broadcasting and its rise to fame.

From Thousands to Millions: The Rise to Fame

People avidly followed sports even before television, following action through radio commentary and using their imaginations to visualise the game. But the involvement was low.

Then television entered the scene. The action was now being teleported to millions of fans. There was no longer a need to imagine the scenes. You could catch the games live in black and white. By the mid-20th century, sports started amassing a global audience.

TV networks couldn’t resist the charm. They started buying rights to broadcast games, knowing it would draw large audiences to their networks and help them grow in popularity. On the other hand, sports enjoyed exposure.

And, due to this mutually beneficial arrangement, broadcasting rights in the early days were rather cheap. But it all changed soon. By the 1980s, as sports like football, basketball, and baseball acquired global fame, broadcasting contracts turned lucrative, too, for the monetary benefits they brought were worth every penny.

Enter the Multi-Billion-Dollar World of Sports Broadcasting 

In the late 1990s and early 2000s, the world of sports broadcasting took an astronomical leap. Top networks were competing fiercely to air high-profile games, including names like CBS, Fox, NBC, and ESPN.

From millions, sports broadcasting rights soared to billions in a short time. Today, they have even exceeded hundreds of billions. In 2021, the NFL signed broadcasting agreements with CBS, NBC, Fox, ESPN/ABC, and Amazon, valued at over $100 billion over 11 years.

During marquee events like the NBA Finals, the Super Bowl, and the World Series, the price goes up further. Today, if you consider the broader impact of sports, it could even be deemed a multi-trillion dollar industry.

And all of it has been majorly facilitated by one thing: the rise of streaming platforms worldwide.

The Arrival of Streaming Platforms

Even in the early 2000s, when only the top TV networks were in the race, the competition was fierce. A decade later, the whole industry experienced a dramatic shift. People started cutting cords and ditching traditional cable for online streaming platforms. And naturally, new sharks entered the waters.

Streaming platforms like Netflix, Hulu, Disney+, Amazon Prime, and ESPN+ were also now vying for sports broadcasting rights. As the demand increased, so did the broadcasting price.

And, unlike when TV entered the scene, sports leagues didn’t initially entertain these streaming platforms, fearing it might affect their TV contracts. But soon, they had to embrace it. A grand shift was in effect, and streaming platforms took digital consumption off the charts.

The NBA was among the first to experiment with the new model. Today, it’s fast becoming the de facto way to watch sports. Now you could stream everything from boxing to tennis to basketball to soccer. And, as convenience stole the show, sports’ popularity and market size touched the skies.

How Streaming Changed the Financial Landscape of Sports

The arrival of sports events on online streaming platforms helped the industry actively reach and appeal to a newer, younger class of fans. The global interest expanded exponentially, and sports leagues saw their revenues multiply.

Despite being incredibly lucrative, TV networks could only provide these leagues with limited revenue streams. With the advent of streaming services, revenue options increased dramatically. 

Streaming platforms could also charge fans flexibly through pay-per-view options, premium content subscriptions, and microtransactions for individual games. A win-win for both sides. Fans could conveniently cherry-pick and pay for only what they watch, while the platforms benefitted from attracting more eyeballs.

Further, the global attention also facilitated their move into the domain of targeted advertising, revolutionising the marketing side of the sports industry and making it more lucrative for everyone involved.

What Next?

Today, be it as a sports fan or a modern investor, you simply cannot ignore the industry that continues to evolve and rise the way the sports industry has. Luckily, you don’t even have to invest big or go all-in to get a slice of the pie. 

Through Stryde, you can easily get an equity stake in your favourite or fastest-rising team or club and join in on the fun. Explore the latest investment opportunities in the sports industry and start your journey today.