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

Streaming services from Netflix and China's Tencent Holdings now pay half of all fees to broadcast sports across Asia, marking a significant shift from traditional media structures, according to a new report. Media Partners Asia projected that online platforms in India, such as JioHotStar, will shoulder 50% of regional sports rights fees this year, valued at approximately US$5.7 billion.

This represents a substantial increase from just 36% in 2021, as noted by the consultancy in its latest report. Streaming apps are rapidly taking over fan screens worldwide, as they vie for deals with top professional leagues, forcing viewers to subscribe to multiple services rather than relying on a few cable channels. In Asia, this shift could potentially slow down the growth of commercial sports, with rights fees expected to increase by only 1% to 2% per year through 2030, compared to the 58% total growth observed over the past five years, according to MPA.

The Asian sports economy, encompassing merchandise and sponsorship deals, is projected to grow at an annual rate of around 5% to reach US$19.5 billion by the same period, up from US$16.2 billion currently. However, each viewer in Asia generates only about US$4 in commercial sports revenue, a fraction of the US$200 per person generated in North America.

India has been a key driver of the region's sports economy growth since 2021, accounting for more than half of its expansion. The Indian Premier League leads Asia's professional leagues in terms of rights fees, charging about US$12.4 million per match, which is comparable to the Premier League's rates. Streaming giants across Asia have also divided the market among themselves.

For instance, JioHotStar, a joint venture between Disney and Reliance Industries, has secured cricket rights, while Tencent has provided access to NBA and NFL games for the world's second-largest population, and MNC Digital Entertainment Tbk in Indonesia broadcasts matches from the Asian Football Confederation and UEFA European Championship.