Digital sports viewership surpasses traditional TV for the first time

The news: Digital sports viewership has surpassed traditional TV viewership for the first time, though many viewers consume sports through both channels.

Key stats:

• Digital sports viewers in the US now outnumber traditional pay TV sports viewers.
• Live sports broadcasts are still predominantly viewed on TV screens rather than mobile devices or computers.
• Live sports accounted for 96 of the 100 most-watched shows on US television in 2023, per Nielsen, with 93 of those slots filled by football specifically.
• As a result, sports media rights costs have doubled over the last decade to unprecedented levels.

Why it matters: The shift represents a fundamental change in consumption patterns.

• Third-party data suggests that viewers over 50 years old are 50% likely to watch an entire game from start to finish, while viewers under 25 years old are only 30% likely to watch a complete game.
• Younger audiences are increasingly consuming sports through highlights and clips.

Platform fragmentation is creating challenges as well, including making it difficult for consumers to find the events they want to see. Major sports content is now spread across multiple streaming services; as a result, a single team's games may appear on five different platforms within one week.

Zooming out: Streaming platforms are making aggressive moves to win a slice of sports media rights.

• Amazon and NBC outbid Warner Bros. Discovery for NBA rights, though WBD wound up winning some rights back after a legal dispute.
• Netflix is entering the live sports market with key investments in boxing and NFL games.
• ESPN is launching a flagship streaming app that will include all linear content.

As EMARKETER senior analyst Ross Benes noted in a recent webinar: “Netflix knows that if it puts $150 million on two Christmas games, it has a rough idea of how many people are going to watch. That's a safer bet than spending that on a movie.”

Our take: The shift to digital viewing represents a pivotal moment in sports media consumption, but the transition poses significant challenges. The fragmentation of rights across multiple platforms creates friction for consumers while driving up costs. Success in this new environment will require balancing traditional broadcast reach with digital innovation.

Looking ahead, we expect:

• Sports rights costs will continue to escalate as streaming platforms compete for content.
• Platform consolidation will eventually emerge to reduce viewer friction.
• Younger viewers will drive innovation in short-form sports content delivery.
• Traditional broadcasters will accelerate their digital transformation efforts.
• Sports leagues will develop more sophisticated multi-platform distribution strategies.

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