After seeing double-digit growth rates for the past three years and a compound annual growth rate of nearly 8.6% between 2010 and 2015, media rights for North American sporting events for TV and streaming are forecast to moderate slightly through 2020 to a CAGR of 5.5%, a new study says.
Could the value of live sports be overrated? No doubt, according to BTIG analyst Rich Greenfield who today in a blog post said the firm believes ESPN has laid out far too much cash for rights to televise major sporting events, especially as the cable bundle begins to come undone and consumers look online for their entertainment.
The retransmission fees that pay-TV operators pay broadcasters is expected to increase to $10.3 billion by 2021, a 63% increase from fees expected to be paid in 2015.
The estimate, provided by SNL Kagan today, shows that TV station owners continue to wield power in negotiations with operators even as more viewers turn to over-the-top and subscription video-on-demand services.
Kagan also upped its projection for 2020, adding $500 million to its earlier $9.3 billion forecast.