Sports Rights Monetisation: Navigating the New Media Landscape

We dissect Chapter 2 of the Altman Solon's 2024 Global Sports Survey, focusing on sports rights monetisation

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Last month, we explored the first chapter in the evolution of fan habits from Altman Solon's 2024 Global Sports Survey. The data revealed a clear disconnect between fan interest and actual viewership, with pricing and accessibility creating significant barriers. Now, we dive into the second publication in this series, focusing on Sports Rights Monetisation — where the rubber truly meets the road in the sports media revolution.

The Consolidation Conundrum

The sports media landscape is undergoing a profound transformation, with consolidation emerging as a defining trend. Here's what the data tells us:

• An overwhelming 87% of executives believe media consolidation will increase by 2030

• 37% predict this consolidation will negatively impact sports media rights values

• European and Tier 2 sports properties are feeling the squeeze most acutely

• Major U.S. leagues appear more resilient, benefiting from market tailwinds

What's particularly interesting is the contrasting regional dynamics. While the NFL has seen substantial growth in the average annual contract value for domestic media rights, Europe's top five football leagues have experienced erosion in domestic rights values, driven by content sharing and carriage deals.

New Players, New Game

Here's where things get intriguing. Despite consolidation pressures, the buyer universe is simultaneously expanding beyond traditional broadcasters:

• 99% of executives expect streaming services to adopt live sports in some form

• Netflix, Amazon, and Apple are becoming key buyers of sports rights

• The market is opening to global streaming services, tech giants, local publishers, and brands

This expanded buyer universe demands a strategic shift in how sports rights are structured and brought to market. Rights owners can no longer rely on a one-size-fits-all approach.

The Hybrid Revolution

To capture growth from these new market entrants, rights owners are increasingly pivoting to a hybrid content and IP exploitation model:

• Moving beyond traditional B2B content licensing to include product-based licensing (B2B2C or direct-to-consumer)

• Owned-and-operated (O&O) platforms are gaining strategic importance, with 84% of executives citing their value for building direct-to-fan relationships

• 71% recognise their utility for distributing unsold rights

Beyond media rights, the report highlights broader IP licensing opportunities emerging through gaming, digital experiences (like NFTs), physical experiences, and brand partnerships.

Strategic Imperatives for Rights Owners

In this evolving landscape, rights owners face critical strategic decisions:

• Balancing domestic vs. global rights

• Assessing the relevance of cross-platform rights

• Protecting incumbent partners while empowering new bidders

• Maintaining clear principles throughout the deal-making cycle

The message is clear: the future belongs to those who can adapt their rights distribution strategies to meet the evolving needs of an increasingly diverse content buyer ecosystem.

Next week, we'll explore the third publication in this series, focusing on Investor Perspectives in the sports industry. Stay tuned to see how financial players are viewing these seismic shifts in the sports media landscape. Be sure to subscribe so that you don’t miss it.

Sports Rights Monetisation: Navigating the New Media Landscape

The sports media ecosystem is undergoing a profound transformation, with consolidation emerging as one of the most significant market forces. According to Altman Solon's survey, we're witnessing a decisive shift from peak fragmentation toward concentration of power among several dominant entities.

Industry Consensus on Consolidation Trends

The data reveals stark expectations among industry leaders:

• 87% of sports executives believe media consolidation will continue to increase through 2030

• 37% predict this consolidation will negatively impact sports media rights values

• Tier 2 sports properties are identified as the most vulnerable to these market pressures

• Major U.S. leagues demonstrate greater resilience against these consolidation effects

Market-Specific Dynamics and Regional Contrasts

This consolidation trend manifests differently across global markets, creating distinct challenges and opportunities:

United States: Strength at the Top

Despite broader industry headwinds, major U.S. sports leagues continue to command premium valuations:

• The unrivalled strategic value of premier U.S. sports content has driven significant domestic rights value increases

• These properties have demonstrated remarkable resilience even in the face of cord-cutting pressures

Europe: Eroding Competitive Intensity

The European landscape presents a more challenging picture:

• Consolidation has substantially reduced competitive intensity among traditional sports rights buyers

• The top five European football leagues have experienced decreasing domestic rights values

• Content sharing and carriage deals have further eroded rights values

• New cooperation models between platforms (e.g., DAZN aggregating third-party services, Canal+ offering branded hubs) reshape competitive dynamics

Consolidation Drivers and Strategic Rationale

This market consolidation stems from several interconnected factors:

• Major media groups pursuing aggressive M&A strategies in response to cord-cutting

• Consolidated entities seeking scale advantages in content offerings

• Expanded subscriber reach becoming increasingly critical to business models

• Enhanced pricing power through larger audience aggregation

Recent industry examples illustrate this trend:

• Walt Disney's acquisition of 21st Century Fox properties

• CBS and Viacom merger creating Paramount Global

• WarnerMedia and Discovery combining to form Warner Bros. Discovery

Strategic Implications and Opportunities

While consolidation presents clear challenges for rights values, it also creates strategic openings:

• The survey indicates these aggregators won't achieve full audience reach

• Multiple audience segments remain outside consolidated platforms' walled gardens

• Niche communities represent opportunities for alternative distribution and monetisation approaches

Despite prevailing concerns about negative rights value impacts, sports content continues to demonstrate exceptional value in the broader media ecosystem. Rights owners who can adapt their licensing models to this evolving landscape—particularly through hybrid approaches to content distribution and broader IP monetisation—can navigate these consolidation pressures more effectively.

The Expanded Buyer Universe: New Players Reshaping the Market

While media consolidation presents clear challenges, Altman Solon's survey reveals a counterbalancing force: a significant expansion of potential buyers beyond traditional broadcasters. This growing buyer universe represents a transformative shift in the sports media rights market, creating new opportunities for strategic rights owners.

Emerging Players in the Sports Rights Marketplace

The landscape for sports content acquisition has expanded dramatically to include entities that historically played minor roles, if any, in this space:

• Global Streaming Services

  • 99% of executives anticipate streaming services will adopt live sports in some capacity

  • Services like Netflix, Amazon Prime Video, Apple TV+, and DAZN are increasingly investing in sports content

  • Different strategic approaches are emerging: ESPN+ focuses on season-long rights, while Netflix experiments with premium live sports in limited inventory

  • Amazon Prime Video is positioned to become a major distributor of premium sports in key markets

• Large Technology Groups

  • Companies such as Meta (Facebook), X (formerly Twitter), Snapchat, and Google represent key potential buyers

  • These platforms bring massive user bases and sophisticated technical capabilities to sports content distribution

• Local Publishers and Brands

  • Non-traditional players are entering the market seeking brand activation and customer acquisition opportunities

  • Case examples include Budweiser's partnership with the NBA in Brazil to broadcast live games

  • Online marketplaces like Daraz offering free live streams of cricket matches to drive platform engagement

• Gaming Platforms and Betting Operators

  • These specialised platforms face increased competition from broader emerging players

  • They seek sports content to enhance core offerings and create integrated user experiences

Strategic Motivations Driving New Market Entrants

These new players often pursue sports rights with fundamentally different objectives than traditional broadcasters:

• Subscriber Acquisition and Retention

  • For streaming services, live sports serves as a crucial differentiator in a highly competitive subscription market

  • Sports content helps reduce churn and attract high-value customer segments

• Brand Building and Customer Engagement

  • For brands, sports content creates powerful engagement opportunities with target audiences

  • Sports sponsorship evolves from passive brand exposure to active content distribution

• Creating Integrated Experiences

  • Technology groups leverage sports content to enhance platform stickiness and user engagement

  • Sports becomes one component of broader entertainment ecosystems

Strategic Implications for Rights Owners

This diversified buyer universe necessitates a fundamental reconsideration of rights packaging and go-to-market strategies:

• Beyond One-Size-Fits-All Models

  • Rights owners must move away from traditional astronomic broadcast deals

  • Modular approaches to licensing enable new entrants with varying business models to participate

  • Flexibility in rights packaging becomes a competitive advantage

• Hybrid Content Exploitation

  • Successful strategies now combine traditional content-based licensing (B2B) with product-based approaches (B2B2C or direct-to-fan)

  • Broader IP collaborations beyond pure media rights—in gaming, retail, and physical experiences—gain importance

  • Multiple monetisation channels reduce dependency on any single distribution partner

• Tailored Rights Portfolios

  • Rights owners must develop customised offerings that align with the specific needs of diverse buyers

  • Both "raw" content assets and ready-to-deploy products ease market entry for newcomers

  • Technical specifications and delivery requirements vary significantly across platforms

While media landscape consolidation presents undeniable challenges to sports rights values, the concurrent expansion of the buyer universe creates significant offsetting opportunities. Rights owners who strategically adapt their licensing models to address the diverse needs of these new market entrants—through flexible packaging, hybrid distribution approaches, and broader IP exploitation—stand to capture substantial growth in this evolving ecosystem.

Hybrid Content Distribution: Maximising Value in a Fragmented Ecosystem

The survey reveals that successful rights owners are increasingly adopting hybrid content distribution strategies to navigate the complex modern media landscape. This approach represents a significant evolution beyond traditional content licensing models, enabling rights holders to capitalise on new market opportunities while limiting consolidation risks.

Core Components of the Hybrid Model

The hybrid distribution approach encompasses multiple complementary strategies:

• Content-Based Licensing (Traditional B2B)

  • Licensing "raw" content assets to media partners who create and manage finished products

  • Remains a foundational component but requires adaptation for new market entrants

  • Provides scalable reach through established distribution channels

• Product-Based Licensing (Owned-and-Operated/D2C)

  • Development and operation of proprietary platforms for direct content distribution

  • 84% of executives cite O&O platforms as strategically valuable for building direct fan relationships

  • 71% recognise their importance for distributing unsold rights

  • Industry leaders expect O&O platforms to evolve from defensive tools to offensive strategic assets

• Broader IP Collaborations

  • Extending beyond pure media rights to leverage IP across diverse verticals

  • Creates additional fan engagement touch points and unlocks adjacent revenue streams

  • Examples include:

    • Gaming & Esports partnerships

    • Digital experiences with potential NFT monetisation

    • Pop-up and permanent physical branded experiences

    • Strategic retail collaborations

    • Co-developed products with third-party brands

Market Forces Driving Hybrid Approaches

Several interconnected factors are accelerating the adoption of hybrid distribution models:

• Expanded Buyer Universe

  • Diverse new market entrants require flexible rights packaging options

  • Hybrid approaches accommodate varying business models and technical capabilities

  • Both content licensing and turnkey products lower barriers to entry for non-traditional buyers

• Media Landscape Consolidation

  • Direct-to-consumer channels provide strategic optionality amid consolidation pressures

  • Owned platforms serve as negotiating leverage and potential alternatives to traditional deals

  • Multiple distribution channels reduce dependency on consolidated media groups

• Evolving Fan Habits

  • Direct connections with younger audiences and niche communities become increasingly critical

  • Fragmented viewing patterns require presence across multiple platforms and formats

  • Enhanced engagement opportunities through interactive and personalised experiences

Strategic Opportunities and Considerations

The hybrid model presents both significant opportunities and important challenges for rights owners:

• Key Opportunities

  • Optimised Content Value: Creating strategic optionality in rights auctions and sales

  • Flexible Rights Packaging: Enabling diverse optimisation strategies across platforms

  • Full-Reach Distribution: Effectively addressing market fragmentation challenges

  • New Monetisation Verticals: Unlocking revenue streams beyond traditional media rights

  • Enhanced Product Control: Maintaining brand consistency and quality standards

  • Direct Fan Relationships: Building valuable first-party data and engagement insights

• Implementation Challenges

  • Resource Requirements: Higher costs and operational needs for developing O&O platforms

  • Expertise Gaps: New capabilities required for direct content distribution

  • Partner Management Complexity: Balancing multiple distribution relationships

  • Deal Structuring: Maintaining clear principles throughout increasingly complex negotiations

The survey data indicates that successful rights owners are not choosing between traditional licensing and direct distribution—they're strategically implementing both approaches. This hybrid model allows them to optimise the value of their intellectual property across a dynamic media ecosystem, creating multiple monetisation opportunities while building stronger, more direct relationships with their fans.

As market consolidation continues and fan behaviour evolves, rights owners who master this hybrid approach will be best positioned to thrive in the increasingly complex sports media landscape.

Evolving Fan Habits: Meeting the Audience Where They Are

The survey identifies evolving fan behaviours as a fundamental driver reshaping the sports media landscape. Rights owners and media partners face an urgent imperative to adapt to these shifting preferences—particularly among younger demographics and niche communities—to maintain relevance and optimise monetisation in this rapidly changing environment.

The Fragmentation Challenge

The traditional broadcast paradigm, while still significant, no longer represents the dominant or exclusive consumption model for sports content:

• Streaming aggregators, despite consolidation efforts, have not fully replicated traditional TV's reach

• Audiences are increasingly distributed across a diverse ecosystem of platforms and services

• Rights owners must develop multi-platform distribution strategies to ensure comprehensive audience coverage

• Single-channel approaches risk missing substantial segments of the potential audience

The Generational and Community Imperative

The survey highlights particular challenges in engaging two critical audience segments:

• Younger Demographics

  • Demonstrate fundamentally different consumption patterns than traditional audiences

  • Often prioritise flexibility, personalisation, and multi-platform access

  • Represent the future core audience for sports properties

• Niche Communities

  • Remain outside the reach of mainstream media consolidation

  • Often demonstrate higher engagement and monetisation potential per user

  • Require specialised content approaches and distribution strategies

  • Present valuable growth opportunities for rights owners who can effectively engage them

The Direct-to-Fan Relationship Evolution

Ownership of the fan relationship emerges as a strategic priority for rights owners:

• 84% of executives anticipate increased relevance of owned-and-operated platforms for direct fan connections

• Direct relationships provide valuable first-party data to understand evolving preferences

• Personalisation capabilities enhance engagement and monetisation opportunities

• O&O platforms enable rights owners to experiment with new formats and approaches

• Direct channels create independence from traditional distribution intermediaries

Diverse Content Experience Expectations

Contemporary fans increasingly demand varied and flexible content experiences beyond traditional live broadcasts:

• On-Demand Flexibility

  • Fans expect to consume content on their own schedules

  • Time-shifted viewing continues to grow in importance

  • Highlight packages and condensed games serve time-constrained viewers

• Modularised Content

  • Different audience segments value different content components

  • Tailored packaging allows for audience-specific content delivery

  • Media partners seek sports assets that align with their specific audience interests

• Multi-Format Engagement

  • Fans seek to interact with sports properties across multiple touch points

  • Broader IP collaborations (gaming, digital experiences, physical activations)

  • Second-screen experiences enhance primary content consumption

The Streaming Transformation

The survey reveals a clear industry consensus regarding the shift toward streaming:

• 99% of executives anticipate streaming services adopting live sports in some form

• Streaming platforms align with broader entertainment consumption patterns

• Technical capabilities enable enhanced personalisation and interactive features

• Mobile-friendly delivery reaches fans across diverse contexts and locations

Strategic Implications for Rights Owners

These evolving fan habits drive several critical imperatives for rights owners:

• Platform Diversification

  • Presence across multiple distribution channels maximises audience reach

  • Strategic prioritisation based on audience composition and commercial potential

  • Balanced approach to exclusive vs. non-exclusive distribution

• Content Format Innovation

  • Experimentation with new content types and presentation approaches

  • Enhanced storytelling to build emotional connection with casual fans

  • Interactive and participatory elements to deepen engagement

• Direct Relationship Development

  • First-party data collection to understand audience behaviour

  • Community-building initiatives to strengthen fan loyalty

  • Personalised experiences to increase engagement and lifetime value

• Pricing Strategy Refinement

  • Tiered approaches to address varying willingness to pay

  • Bundle optimisation to maximise perceived value

  • Strategic free content to build audience and drive conversion

The Altman Solon report makes clear that understanding and adapting to these evolving fan habits represents perhaps the most crucial strategic challenge for sports rights monetisation. The expanded buyer universe and hybrid content distribution models discussed previously serve as direct responses to these changing preferences, as rights owners seek to meet fans where they are—across an increasingly complex and fragmented media landscape.

Final Thoughts: Navigating the Future of Sports Media

As we've explored throughout this analysis of this survey, the sports media landscape is undergoing a profound transformation. The simultaneous forces of media consolidation and buyer universe expansion are creating both challenges and opportunities for rights owners. Those who can effectively implement hybrid distribution strategies and adapt to evolving fan habits will be best positioned to thrive in this dynamic environment.

The strategic imperatives are clear:

• Develop flexible rights packaging to accommodate diverse buyer needs

• Build direct-to-fan relationships through owned-and-operated platforms

• Explore broader IP monetisation beyond traditional media rights

• Align distribution strategies with changing consumption patterns

• Balance traditional licensing with innovative direct approaches

While we primarily focus on sports technology in this newsletter, we cover these industry reports because they provide crucial context for understanding the problems that innovations are seeking to solve. The challenges identified in this survey—from audience fragmentation to generational shifts in consumption—are precisely what many sports tech companies are addressing through their products and services.

By understanding these market dynamics, we gain valuable insights into where the industry is heading and how technology will play a pivotal role in shaping the future of sports media and fan engagement. The innovations emerging today in content delivery, fan analytics, interactive experiences, and monetisation tools are direct responses to the trends highlighted in this report.

Next week, we'll explore the third publication in this series, focusing on Investor Perspectives in the sports industry. Stay tuned to see how financial players are viewing these seismic shifts in the sports media landscape and where they're placing their bets on the future of sports technology.

Track the Trends. Spot the plays. Shape the game.

Thanks for reading,

Dean

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