The end of traditional TV? Streaming services overtake broadcasters with new strategy

Recently, the Netflix surprised the market by announcing its foray into live sports broadcasts through the “Netflix Cup”.

This revolutionary program will combine sports such as motorsports and golf, already present in series in the platform’s catalog.

This strategic move by the streaming giant follows the trend of major competitors such as Prime Video, Apple TV+ and Star+, consolidating the merger between sports and streaming platforms.

Streaming overtakes TV with investments in the sports sector

The exponential growth of these platforms, focused on convenience and accessibility for consumers, is remarkable.

According to Rocket Lab’s 2023 Mobile Market Analysis, the global streaming market reached $7.2 billion in 2022, with expectations of doubling that number by 2027.

For Renê Salviano, a sports marketing specialist, the scenario is positive, but also challenging.

“The convergence between digital entertainment and streaming is a growing phenomenon. The practicality of this way of consuming content has won over the public, but there are still challenges regarding the balance between investment and revenue, especially in advertising within these platforms.”

The sports segment on the platforms also moves significant figures. The MLS, broadcast on Apple TV+, operates under a 10-year contract worth US$ 2.5 billion, while the Prime Video renewed the broadcasting rights for the Copa do Brasil for a fixed R$520 million to the CBF.

Standing out in this scenario, NSports, a pioneer in Brazilian sports streaming since 2018, recently announced a sponsorship and media partner agreement with the Brazilian Olympic Committee (COB), valid until the Los Angeles Olympic Games in 2028.

“Free-to-air TV no longer holds the monopoly on sports broadcasts it had decades ago, a change accelerated by the pandemic. Today, streaming offers viewers not only flexibility, but also the chance to delve deeper into the sports narrative, statistics and behind-the-scenes of competitions. This evolution is redefining the way we consume sports entertainment,” reveals Fábio Wolff, sports marketing specialist and managing partner of Wolff Sports.

Sports content on streaming platforms goes beyond live broadcasts, including documentary and scripted series that explore different sports.

Exemplifying this success, the Apple TV+ series Ted Lasso has accumulated 11 Emmy trophies, including Best Comedy Series for two consecutive years.

Another highlight is Quarterback, a Netflix documentary series about soccer American, which achieved enough success to warrant a second season.

Netflix Cup — Image: Netflix/Reproduction

The market of streaming in the sports sector is on the rise, not only among men but also among women.

According to research by Sport Track, female audiences were responsible for a 22% increase in new subscriptions to sports streaming services between 2021 and 2022.

In 2022, 39% of women said they subscribed to a media platform to watch sporting events.

These numbers highlight the expansion of the audience and the diversification of consumption of sports entertainment on streaming platforms, marking a revolution in the way we experience the contemporary sporting world.