Los Angeles, CA – September 27, 2024 – In an attempt to thrive in its status as America’s most-watched sports league, television executives are starting to get uneasy over the future of the league-including what 2029 may bring. The reason for concern lies in shifting viewer habits, transformed media landscapes, and the ever-rising shift of influence placed on digital platforms that change the way people consume sports content.
The next big round of NFL broadcast deals are worth billions of dollars annually to the league-is currently slated to expire in 2033. Even as the league remains a ratings powerhouse, with millions of viewers tuning in to watch each week, executives fear that old-fashioned television may no longer be the dominant platform it once was by the time these deals come due. All of these are compelling the broadcast companies to review their strategies in the long term.
“There’s no question that the NFL is a huge asset for us, but we are experiencing a paradigm shift in how people consume live sports,” said a senior executive of a major network, who requested anonymity to speak more candidly. “Younger audiences are not watching games the way the prior generations did. They care about highlights, social content, and interactive experiences.”.
One of the biggest worries for networks – and perhaps the factor most hurting this year’s ratings – is the steady erosion of 18-49 linear TV viewership, which declined again last year. As more and more consumers cut the cord in favor of on-demand streaming options, it becomes tougher to justify the massive rights fees that come with NFL broadcasts. That could only weaken the hand of old-fashioned broadcasters when renewal time rolls around.
Moreover, among the big players in the tech world, there are Amazon and Apple, aggressive enough in their search for live sports rights: Already this season, Amazon streamed Thursday Night Football. Apple is said to be seeking future NFL packages. That will not be the last of the conflux of new players trying to encroach on existing networks with more money than imagined in their coffers, making the traditional landscape an even more challenging hurdle.
For example, the NFL has appeared willing to adopt new distribution patterns such as streaming partnerships and international expansion in a bid to maintain leadership. It remains to be seen whether the efforts of the NFL will carry the day to preserve dominance in an environment where the media landscape is changing rapidly.
The next five years will be instrumental in defining the shape of sports broadcasting and whether the NFL stays the gold jewel in American television or becomes a casualty of the ongoing transformation for television executives.
