Streaming Giants Increase Their Hold on Sports

This holiday season, NFL enthusiasts will be treated to back-to-back games, kicking off with the Dallas Cowboys facing off against the Washington Commanders at 1 p.m. ET, featuring a halftime spectacle by Snoop Dogg. However, viewing these events requires a subscription to either Netflix or Amazon Prime.

Tech behemoths like Amazon and Netflix that have already transformed the entertainment industry are now making significant moves in the sports arena. In the 2025 forecast by Ampere Analysis, it's projected that Amazon and YouTube TV will control a substantial 65% of the $6.5 billion projected spend on sports streaming rights for American viewers, with Amazon holding 34.4% and YouTube TV 30.6%. Netflix, while trailing behind, commands a notable 11.3% of the market, followed by Disney's ESPN+ and Comcast's Peacock.

Recent years have seen both Amazon and YouTube aggressively secure high-value sports rights. Amazon has allocated $11 billion for Thursday Night Football and a staggering $19.8 billion for NBA coverage. Meanwhile, YouTube has locked in a $14 billion deal for NFL's Sunday Ticket rights. Netflix, while also securing NFL Christmas Day games and events like the Jake Paul vs. Mike Tyson fight, approaches sports as part of a diverse live events strategy that includes stand-up comedy and award ceremonies. According to an insider, Netflix's sports spending is seen at $600 million, contrasting with Ampere's $738 million estimate.

It’s important to note that Ampere’s figures do not include investments in international sports rights or cases like Amazon’s spending on global NFL rights or UEFA competitions in the UK. Broadcasters continue to lead as the dominant sports rights purchasers in the US, yet streaming services are steadily advancing in this field.

Ampere highlights that in 2025, nearly 47% of US broadcasters' $24 billion content budgets will be spent on sports rights. Despite this, the bulk of streamers’ budgets still favors film and television content. For instance, sports only accounted for 10% of streamers’ content spending in 2025, rising from 6% in 2024. At Amazon, sports-related spending constitutes roughly 19% of its content budget, nearing its film expenditure.

Incorporating sports content is advantageous for streamers as it enhances customer engagement and retention. Yet, the escalating costs associated with sports rights anticipate tighter budgets for the gradually declining TV entertainment landscape, which has seen a slowdown in production since the end of the Peak TV era in 2022.

Disney disclosed in its recent financial announcement that sports rights significantly drive their planned $24 billion expenditure for the upcoming fiscal year. CFO Hugh Johnston defended this 73% increase in NBA rights costs by emphasizing their profound viewer and advertiser appeal, despite causing some financial fluctuations during the year.

Netflix has compared its new NFL agreements to the scale of its film investment, emphasizing its more limited number of productions. Addressing the cost implications of the NFL deal at a prior investor gathering, Netflix executive Spencer Wang likened the investment for each NFL game to one of their moderate-scale original film productions.

The Continuing Evolution of Sports Streaming

The migration of sports broadcasts to online platforms is anticipated to persist. Ampere projects an increase in global sports rights spending by 20%—reaching $78 billion by 2030. This surge will largely be fueled by the United States, with fresh rights for major leagues like the NBA and MLB anticipated to be auctioned in the imminent years. The upcoming NFL media rights discussions could commence as early as 2026, aiming for optimal returns.

Capitalizing on its position, YouTube TV is broadening its sports offerings with a new bundle and other specialized packages that come at a lower cost than its usual $83-per-month plan.