The value of certain sports rights can be appraised through three major metrics: the ability to command viewing/engagement, the ability to drive subscriptions incremental to other rights, and the propensity of those subscribers to provide the rights holder with additional revenues.

In this report we examine these three metrics in order to gain an understanding of the tensions in the market, along with the reasons as to why there is competition (or not) for certain rights.

Unsurprisingly, outside of a few primary sports rights, there are an abundance of secondary rights which find it difficult to display their value over others. Their value relies just as heavily on whether rights holders are committing to, or retreating from, major rights.

Amazon aired its first set of Premier League matches in December, with proxy figures supporting reports that it attracted up to 2 million concurrent viewers.

Amazon Prime penetration soared in Q4, backing up Amazon’s claims that record numbers of new members signed up on the first two days of its football coverage—an encouraging sign at the time of year when ecommerce spend peaks.

As long as Amazon remains principally an online retailer, bidding for premium packages of Premier League rights cannot be justified. In fact, it could retrench from Premier League football altogether after wringing out the value over three seasons.

At the Enders/Deloitte Media & Telecoms 2020 and Beyond conference, players from the sports world came together to discuss the current challenges and opportunities in engaging with fans. There was general consensus that free-to-air broadcasters, pay-TV operators and OTT services all have a role to play in serving sports audiences.

DTC services will enable sports organisations to engage with and learn about their fans, but whilst a complementary DTC service can boost incremental reach beyond broadcasters, rightsowners should remain cognisant of the collective power of bundling.

As viewing habits continue to evolve, fastest of all amongst younger generations, the industry needs to continue to adapt, particularly if it is to have a chance of combatting piracy.