Watching live sports on TV is a valuable business model for several reasons:
High viewership: Live sports events tend to attract a large and dedicated audience, which means high ratings for TV networks. Advertisers are willing to pay a premium to reach this engaged and attentive audience, making sports programming a valuable source of revenue.
Must-see content: Live sports events are often considered "must-see" content, meaning that viewers will watch them in real-time rather than recording them for later. This makes sports programming especially valuable in the era of time-shifted viewing and streaming services, where many viewers can skip ads.
Limited availability: Many live sports events are exclusive to certain TV networks or streaming services, making them a key point of differentiation and a valuable tool for winning and retaining subscribers.
Sponsorship opportunities: Sports programming offers numerous opportunities for sponsorships and brand partnerships, including product placement, in-game advertising, and sponsorships of specific teams, athletes, or events. These partnerships can provide an additional revenue stream for TV networks and sports leagues.
Overall, the combination of high viewership, must-see content, limited availability, and sponsorship opportunities make live sports programming a valuable and important business model for Digital Investors, New Media and OTT Providers and existing networks and groups.