The NFL in the Social Media Age: How Streaming and Short-Form Content are Reshaping the Game
The National Football League (NFL), arguably the foundation of American sports culture, faces a new challenge: engaging newer generations. Unlike past generations, who grew up watching full games (i.e., long-form content) on only a few channels, younger generations have a different set of expectations, shaped by the rise of social media (i.e., short-form content) and streaming platforms. This has created a trend in recent years towards the creation of more engaging short-form content to help the NFL maintain its dominance over the attention of consumers young and old.
The Rise of Short-Form Content and the Evolving Field of Play for Sports Consumption
Traditional long-form sports viewership is declining. While 67% of U.S. adults watch live sports on TV, only 54% of adults aged 18-29 get their sports through this medium1. Younger audiences are shifting their engagement to digital platforms, with 62% consuming sports content via social media and 39% through mobile apps, compared to 41% and 28% of all U.S. adults, respectively [1]. This shift is being driven by several factors, such as shorter attention spans and the growing availability of highlight clips across multiple platforms. Notably, the NFL still relies heavily on live TV viewership to engage with its fans, making the league’s recent expansion of its YouTube partnership through Access Pass for Legends a key development to watch.
The legalization of sports betting in many states is further shaping the evolution of sports viewership. Younger fans are increasingly engaging with sports through betting platforms, with nearly 80% being more likely to watch a game if they have placed a bet on it [2]. This trend is underscored by the estimated $23.1 billion expected to be wagered on the Super Bowl this year [3]. This is also shifting some companies bets on media rights, with the valuations of short form highlights rights expected to climb higher in the coming years. An example of this can be seen in Warner Bros. Discovery’s recent deal to bring NFL highlights and original content to its digital platforms [4].
Streaming’s Super Bowl
The NFL has experienced fluctuating ratings over the past decade, making its approach to the rise of streaming platforms ever more interesting.
The NFL’s national media rights account for $111 billion (67%) of its revenue, [6] setting the industry standard among the U.S. big four leagues. However, the growing push from streaming platforms to take share of live TV audiences, particularly in sports, presents an economic opportunity that the NFL hasn’t seen since the media rights shake up in the early 1990s. Meanwhile, legacy networks have the unique value proposition of access to almost every television in America. A potential shift to streaming could put America’s game behind a paywall, forcing the NFL to carefully balance the opportunities and risks of both distribution models.
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Financing the Sports Ecosystem
The innovation of content creation and how leagues distribute their IP are just a few of the contributors to the ongoing evolution of the sports ecosystem, which will need similarly innovative financing solutions to fund its continued growth. As a lender with expertise and experience in the sports, media, and entertainment industries, we are enthusiastic about our position in the market and the interesting investment opportunities across the playing field.
1. How age and fan preferences shape sports media consumption - YouGov Business, https://business.yougov.com/content/50762-how-age-and-fan-preferences-shape-sports-media-consumption
2. Using data to better engage younger sports fans – PwC, https://www.pwc.com/us/en/industries/tmt/library/engaging-younger-sports-fans.html
3. Record 68 million Americans to Wager $23.1B on Super Bowl LVIII – American Gaming Association, https://www.americangaming.org/new/record-68-million-americans-to-wager-23-1b-on-super-bowl-lvii
4. Warner Bros. Discovery scores a deal with the NFL – CNBC Sport,
6.NFL’s next big media rights payday is years off – and subject to a shifting industry – CNBC, https://www.cnbc.com/2024/09/04/nfl-media-rights-media-landscape.html
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1 个月The shift to digital and streaming is fascinating. How do you think this will impact traditional broadcasters in the next few years?