The sports industry is projected to surpass $680 billion in revenue by 2028; however, this figure could be even higher if not for the impact of piracy. Driven by rising cable costs and easy internet access, illegal streaming is causing significant revenue losses, especially for leagues like the English Premier League, prompting stakeholders to seek stronger strategies to protect media rights and maximize revenue, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “Strategic Intelligence: Media Piracy in Sport 2024,” reveals that the industry is reportedly losing approximately $28 million a year, and tacking the problem of piracy has become a significant challenge for leagues and broadcasters. The Premier League has major issues with piracy, with the league blocking more than 600,000 illegal streams during the 2022/23 season.
Olivia Snooks, Sport Analyst at GlobalData, comments: “As technology has advanced and internet connectivity has become more accessible, piracy has grown exponentially in the world of soccer. As the English Premier League is one of the most lucrative soccer competitions globally, the league is a prime target for piracy. Unauthorised streaming and broadcast of Premier League matches have led to substantial financial losses for the league and its member clubs.”
Before sports became a global phenomenon, ticket sales were the primary revenue source for teams, with fan attendance playing a critical role. The COVID-19 pandemic underscored the importance of in-person attendance.
In 2023, the average price of a National Football League (NFL) ticket rose by 8.6% to $120, while Major League Baseball (MLB) tickets increased by 3.5%, averaging $37. For a family, attending a game in 2023 costed around $266. Despite the growing popularity of live sports, the limited number of seats poses a challenge in accommodating expanding fanbases.
Snooks continues: “For many sports fans unable to attend games or access televised broadcasts, illegal streaming has become one of the few remaining options. Unsurprisingly, piracy surged during the COVID-19 pandemic, as fans were restricted from attending games for over a year. Even with the return of live events, it is likely that piracy continues to persist, with many individuals still engaging in illegal streams.”
TV and broadcasting deals are a major revenue source for the world’s wealthiest sports leagues, with some generating billions annually. The NFL currently sets the standard for lucrative sports media rights, having signed five major deals in 2021 with NBC Sports, CBS Sports, Fox Sports, ESPN, and Amazon. The 2023 Super Bowl became the most-watched program of the year in the US, attracting 115.1 million viewers.
Snooks concludes: “Despite the lucrative broadcast deals, the domestic European soccer rights market has faced a shortage of viable broadcasters capable of realistically bidding for these rights. As a result, there is an increasing reliance on the sale of international broadcasting rights. Consequently, piracy is undermining the value of media rights and is expected to continue affecting the market in the years to come.”
