As streaming video services, such as Netflix and Amazon Prime, continue to rise in popularity, more and more consumers shift away from their traditional TV consumption. In 2017, 22 million U.S. adults are expected to cancel their cable or satellite TV subscriptions. This shift from traditional television consumption is expected to continue Year over Year.
With the number of cord cutters and cord nevers – for those who have never subscribed to traditional television – continuing to grow, TV programmers have had to look for new digital venues to provide their programs. Many stations have elected to create their own streaming offering, which is available at a much lower cost than the traditional cable or satellite TV. Both NBC and CBS have already launched their own streaming, or connected TV, packages, and the Disney channel will be launching theirs soon.
If you happen to be a sports fanatic or just want to catch the big game this weekend, you may find it difficult to watch live sports once the cord has been cut. Short of shelling out some extra money for an additional streaming service or pulling out an old school TV antenna, you may find yourself at a local bar/restaurant mooching off their cable.
But this difficulty may not last forever because Facebook is looking to purchase streaming rights for live sports. In June, Facebook partnered with FOX Sports to stream Union of European Football Association (UEFA) Championship League games live on Facebook in the U.S., allowing fans to watch the games that they normally would be unable to view. Facebook has since made significant bids to live stream Team India cricket, NFL and college football games. And while they have not received exclusive streaming rights, they are streaming several college football games this fall.
As Facebook continues to try to grow its live sports offering, many other social platforms will follow suit. Amazon will live stream NFL Thursday night games. Twitter will live stream regular season WNBA games. This is only the beginning.
While this provides consumers the opportunity to watch the live sports they desire more easily, it also presents more opportunities for advertisers. And we should expect to see a shift in advertising dollars from traditional TV to streaming videos, allowing for specified targeting and more available data.