In recent years, the rise of streaming services has revolutionized the way we consume media, from TV shows and movies to music and podcasts. Now, the concept of streaming has even extended to live events, with the recent NFL playoff game between the Miami Dolphins and Kansas City Chiefs being broadcast exclusively on NBC’s streaming platform, Peacock. The decision to charge $5.99 for the game sparked controversy and heated debate about the future of sports broadcasting.
Former ESPN president John Skipper brought up an interesting point in a February 2023 interview, asking if the Super Bowl, the most-watched program of the year with an estimated 115 million viewers, could generate even more revenue if it was put behind a paywall. He argued that at least half of the viewers would be willing to pay a significant amount to watch the game, potentially bringing in billions of dollars.
The idea of a “pay-per-view Super Bowl” may sound enticing to the NFL, but it raises important questions about the league’s existing agreements with major broadcasting networks like ABC/ESPN, Fox Sports, NBC, and CBS. These networks pay billions of dollars for the rights to air NFL games, and the Super Bowl is a major selling point for these deals. If the league were to charge for the game separately, it would likely result in a significant loss of revenue for both the NFL and the networks.
Next stop: Pay per view Super Bowl
It’s coming… https://t.co/oCAlnOZy0u
— Todd Fuhrman (@ToddFuhrman) May 15, 2023
However, the success of the Miami-KC game on Peacock is hard to ignore. It was the most-watched live streaming event in US history, with over 23 million viewers and accounting for 30% of internet traffic that night. This highlights the fact that more and more people are cutting the cord and turning to streaming services as their primary source of entertainment.
The rise of streaming is not limited to sporting events. Cable news networks like CNN and Fox News are also making moves into the streaming space, with mixed results. CNN’s attempt at a paid streaming service, CNN+, was shut down after just 30 days due to consumer backlash over paying for content they could already access for free on the network. On the other hand, Fox Nation, which primarily offers documentaries, has seen significant growth since its launch in 2018.
It’s clear that streaming is here to stay, and it’s not just limited to entertainment. People are now turning to their smartphones for news, making it more important for networks like CNN to find a way to offer a high-quality, differentiated product that would be worth paying for.
However, saturation may be an issue for streaming services, as Americans are already spending an average of $73 per month on streaming subscriptions. This is a 25% decrease from just two years ago, suggesting that people are becoming more selective about the streaming services they are willing to pay for.
There is no doubt that the traditional television model is facing challenges with the rise of streaming. But as technology continues to evolve, it’s likely that streaming will become the dominant way we consume media, including live events like the Super Bowl. While there may be resistance from traditionalists, the success of the Miami-KC game on Peacock is a clear indication of the direction the industry is heading.
Would you watch a pay-per-view Super Bowl on streaming? 👀💰 pic.twitter.com/HakCAKBqWH
— I AM ATHLETE (@IAMATHLETEpod) January 11, 2024
In the end, it’s not a question of if sports and news will be exclusively streamed, but when. It’s a decision that will likely be influenced by consumer preferences and the ever-evolving technology landscape. But one thing is for sure, the Super Bowl is just one example of how streaming has already changed the game. It’s now up to the NFL and other major broadcasters to adapt and find new ways to engage audiences in this fast-evolving media landscape.
