Every year, less
and less people pay for cable. These people are known as “cord cutters.” Some
are doing it for financial reasons, others because they simply don’t watch that
much television and would rather purchase OTT services, such as Netflix and
Hulu. But what about sports programming? Sports programming is meant to watch
live and in order to watch live sports, you need to have cable. I think that no matter
what, sports will always stay relevant to the consumer because the concept of
watching sports live on television will never change. Specifically ESPN, which
serves as a monopoly in the sports TV network industry, is what is leads most
of the male demographic (18-49 year olds) to keeping their cable channel
packages.
If
you are a sports enthusiast, would you pay for cable if you couldn’t watch
ESPN? According to a Sports Illustrated article,
most people wouldn’t pay for cable if they couldn’t get ESPN. In the article
Jon Wertheim says “Just under
100 million cable homes get ESPN in their cable package; before selling a
single commercial unit, the network earns around $7 billion annually in
subscriber fees. Still, how many consumers would voluntarily pay for ESPN? In
conjunction with a 2004 renegotiation, one cable carrier surveyed its consumers
and found that one-third of them would drop their current carrier if it didn’t
offer ESPN.” How else do you watch sports programming and news? ESPN serves as a
monopoly by being the only cable network to provide sports games and news. Even
though NBC Sports is one of their cable competitors, people go to ESPN due to
their reputation and sports properties.
Right now
I pay for cable and the only times I use it is to watch sports or late night
entertainment shows such as a program on ESPN, NBC Sports and The Tonight Show
with Jimmy Fallon. But that’s as far as my cable watching goes. Otherwise, I
watch Netflix to watch all other shows. The trend for other programming genres
has shifted as cord cutters are causing ratings to decline. However, sports
programming has seen an increase in ratings and viewership. According to a
Nielsen report, “While the rise in time-shifted viewing largely altered
viewership trends for most program genres, live viewing remains the standard
for sports. According to TV data from Q4 2015, 95% of total sports program
viewing happened live. In 2015, there were over 127,000 hours of sports
programming available on broadcast and cable TV and 31+ billion hours spent
viewing sports, which is up 160% and 41% respectively from 2005.” These
findings have been key for sports programming networks because live television has
seen a decrease in viewership year after year.
2015 Nielsen Report. |
This
increase in live sports programming viewership came from many angles. One being
the increase of Fantasy sports participation. According to the Nieslen report,
“Fantasy sports participation is a key way fans have used digital platforms and
technology to enhance their live TV viewing experience.” In particular there
was a 72% increase in Unique Audience for PC in 2005 and a 163% increase in
Unique Audience for smartphones cross top daily fantasy sites. This is true for
myself as well because this year was my first time joining a fantasy football
league. Being that I got very consumed by my fantasy football team, I found
myself watching games live that were relevant to my fantasy football team, even
if I had not previously planned on turning into that particular game. I usually
wouldn’t watch any other games besides New York Giants but due to my
participation in a Fantasy football league, I watched many other games live
which contributed to the increase of viewership for that particular live sports
program.
2015 Nielsen Report. |
The future of
sports programming is selling its rights to OTT content and even social media
companies. This can be seen through a recent deal between Twitter and the NFL.
According to Sports Business Daily, “The
NFL went with Twitter for its "Thursday Night Football"
streaming package, because the league is "intrigued by Twitter’s mobile
capabilities, and Twitter is already a popular medium for sports fans," according
to Ben Volin of the BOSTON GLOBE.” The NFL wants to make an international fan
base and they thought the best way to do this is by streaming with Twitter
because people don’t have to sign in with their cable provider. According to
the Boston Globe, “The
deal comes on the heels of the NFL’s experiment last October in which 15.2
million fans tuned into Yahoo to watch the Bills and Jaguars play in London at
9:30 a.m. Eastern time. The NFL has other streaming deals — Verizon customers
can watch Red Zone Channel and certain games on the NFL Mobile app on their
phones, while CBS, NBC, and Fox allow fans to watch games on mobile devices
once they sign in and authenticate through their cable providers — but
Twitter’s Thursday night package will be the only truly free stream of NFL
games throughout the world."
This is a change in the sports programming industry but I
think it’s in a positive direction for fans, not so much big name networks in
terms of ratings. But this is a great way for people to access games wherever
they are around the world.
No matter where you are from, sports unite people together
and will always be more meaningful when watched live, unlike other types of
programming genres. I think that the future of sports programming will be
available on other platforms but the concept of it being live on cable won’t
hurt as much as people may think. How do you envision the future of sports
programming? Do you think that sports will be available live in the future on
television or will streaming on OTT channels and other platforms takeover?
Works Cited
Master, Stephen.
“Year In Sports Media Report 2015.”
Nielsen. February 2015.
Sports Business
Daily. “Twitter’s Reach To Psorts Fans, International Presence Seen As Key In NFL Streaming Deal.” http://www.sportsbusinessdaily.com/Daily/Issues/2016/04/06/Media/Twitter- NFL.aspx?hl=cord%20cutters&sc=0. April
6, 2016.
Wertheim, Jon. "As More
Viewers Cut Cable, What Will Happen to Sports?"As More Viewers Cut Cable, What Will Happen to
Sports? Sports Illustrated, 17 Dec. 2014.
Web. 10 Apr. 2016. <http://www.si.com/more-sports/2014/12/17/future- cable-sports-tv>.
Volin, Ben. "NFL’s
Twitter Deal Is a Nod to the Future - The Boston Globe."NFL’s Twitter Deal Is a Nod to the Future.
Boston Globe, 5 Apr. 2015. Web. 10 Apr. 2016.
<https://www.bostonglobe.com/sports/football/2016/04/05/nfl-twitter-deal- nod-future/99C3WnsUu29ZXSAaKr1GKN/story.html>.