27.11.2024
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Legalization
Legalization of sports betting: a new growth vector for streaming platforms
Legalized sports betting has become a key element in the popularity of sports streaming, especially in the era of online streaming. The recent exclusive boxing night on Netflix, where Jake Paul defeated Mike Tyson, was not only a high-profile sporting event, but also an example of the merging of streaming and betting.
Record betting on streaming
Bookmakers such as DraftKings and BetMGM were heavily promoted during the broadcast on Netflix. According to BetMGM, the bout became the most popular fight in the history of combat sports betting, surpassing previous records by a factor of four.
Since the federal ban on sports betting in the United States was lifted in 2018, the industry has continued to grow in popularity. Today, legalized betting is allowed in 38 states and Washington, DC. In 2024, online sports betting revenues are projected to reach $12.37 billion.
Growth of sports broadcasting rights
The growth of sports betting goes hand in hand with the increasing spending on media rights. The total value of sports rights in the U.S. reached $29.54 billion this year and is projected to grow to $34.72 billion by 2027.
Companies such as Prime Video, Netflix, Apple TV+ and Peacock are actively investing in live sports events. For example, Prime Video spends $1 billion annually on exclusive rights to broadcast "Thursday Night Football" under an 11-year contract.
Why is betting profitable for streaming platforms?
Legalized betting attracts new audiences and becomes an additional source of revenue for media companies. Sports betting apps have been downloaded 35 million times in 2023 alone, according to EMarketer.
Betting allows platforms to offset the high cost of streaming rights, and in the future is likely to influence the rising cost of subscriptions as well.
The main reasons for the popularity of sports betting
- 1. Legislative changes. The lifting of the betting ban in 2018 opened up new markets.
- 2. Integration with platforms. Active advertising and direct links to bookmakers in streaming services are driving demand.
- 3. Growth of media rights. High rights costs are driving companies to seek new revenue streams.
Sports betting continues to shape the new vector of streaming development. For platforms such as Netflix and Prime Video, this is an opportunity not only to attract an audience, but also to strengthen their financial stability in a competitive market.
