Netflix, streaming rivals dominate US$6bil Asia sports arena

Streaming platforms such as Netflix and China's Tencent Holdings are now paying half of all fees to broadcast sports across Asia, reshaping the traditional media landscape worldwide. According to Media Partners Asia (MPA), online platforms in India, including JioHotStar, will pay 50% of regional sports rights fees this year, estimated at around US$5.7 billion. This is a significant increase from 36% in 2021, as reported by the consultancy.

Streaming apps are gaining traction globally as they vie for deals with top professional leagues, forcing viewers, particularly those outside their home markets, to subscribe to increasingly numerous services rather than relying on a limited number of cable channels. In Asia, this trend could potentially slow down the growth of commercial sports, with rights fees growing by just 1% to 2% per year through 2030, compared to a 58% total growth over the past five years, as per MPA.

The Asian sports economy, encompassing merchandise and sponsorship deals, is projected to reach US$19.5 billion by 2030, growing at an annual rate of about 5%. However, each viewer in Asia generates only about US$4 in commercial sports revenue, a far cry from the US$200 per person seen in North America. India has played a pivotal role in driving more than half of the region's sports economy growth since 2021.

The Indian Premier League (IPL) stands out as the top professional league in Asia, earning approximately US$12.4 million per match, comparable to the revenue generated by the Premier League. Streaming giants in Asia have divided the market, with JioHotStar, a joint venture between Walt Disney and Reliance Industries, securing cricket rights, Tencent gaining access to NBA and NFL games, and Indonesia's MNC Digital Entertainment Tbk broadcasting matches from the Asian Football Confederation and UEFA European Championship.