With the cost of sports rights continuing to soar in the double- and even triple-digit range, it is unlikely that sports-focused linear broadcast or cable networks will survive in this new streaming world.
Amazon.com in bidding war with Paramount
Many English-language games are likely to appear on Paramount+, some of which will appear on linear channels with ads touting the value of Paramount+. This is critical for new streaming companies battling Amazon Prime Video, Disney+, Hulu, and Netflix.
As more people migrate from traditional cable and satellite services to streaming, cable network delivery prices are also dropping, while most cable and broadcast networks find it difficult to bid on streamers for expensive sports packages. A trend called cord cutting.
The most notable exception to this is ESPN. ESPN is expected to migrate more and more games to the ESPN+ service over time while increasing prices. But even ESPN has limits on how much you can pay for rights fees. They reportedly rejected his offer of a seven-year contract for a package of Big Ten games, less attractive than the games he currently owns and priced at $380 million.
The Big Ten eventually sold its media rights to CBS, Fox and NBC for approximately $7 billion over seven years starting July 1, 2023. Broadcast networks split the game, with Fox winning the most championships in her 2023, 2025 and 2027 years, aired by CBS. 2024 and him in 2028, NBC in 2026.
Going forward, companies like NBC Universal may choose to bid for big sports rights deals because they can amortize the cost of cable and broadcast networks, and now Peacock. However, as time goes on, more games are likely to come to Amazon Prime Video, with many of the traditional linear network owners having unmatched cash flow.