NBCUniversal, Disney and ViacomCBS, along with tech giants like Amazon, are shifting resources to snap up live programming from major leagues in a new arms race to fuel direct-to-consumer services.
“This didn’t exist a year and a half ago,” says NBC Sports vp engineering Tim Canary, giving a tour of the space toin late July. Two years ago, the area was filled with regular office desks and cubicles, but when NBCU decided it needed to go all in on streaming, and that sports would be a cornerstone of the strategy, the space was repurposed into Peacock’s sports hub. While it is too soon to know for sure if Peacock’s Olympic bet has paid off, there are early signs it may be working.
As every major entertainment and media company goes all in on streaming in a bid to dethrone Netflix, they are seeking exclusive content that can drive new subscriptions and make their services a must-have. For Peacock, it’s the Olympics and WWE; for ESPN+, it’s a full suite of sports and UFC premium events; and for Paramount+, it’s March Madness and the Masters.
“I think at the moment, everyone is looking at streaming as supplemental to the linear television experience, but five years down the road or three years or 10 years, whenever Disney decides that ESPN+ is a replacement for ESPN … then the bundle falls apart,” says S&P Global senior director Naveen Sarma.
As Disney CEO Bob Chapek told a JPMorgan conference May 24, “that flexibility for us as we need to pivot towards a direct-to-consumer ESPN+ platform has been an important component that we insist upon for each one of these deals.”
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