‘Streamflation’ is here — but what does it mean for consumers and sports rights holders?

The steady increase in subscription costs for video streaming services, coined as “streamflation”, is leaving consumers frustrated. With almost every major streaming service introducing price hikes to boost profitability, subscribers are faced with tough decisions. Either rationalize the number of subscriptions they maintain (already at an average of 3 per month, according to Forbes), change to more affordable ad-supported tiers — or take the hit. The same Forbes survey showed that almost half of those consumers have canceled subscriptions due to rising costs. Losing a subscriber is one thing; winning them back is an entirely different challenge — and one that is proven to be more expensive than retaining them.

But at the same time, viewer expectations are higher than ever — and rightly so. This is especially the case for live sports — from niche and longtail sports to flagship events like the Super Bowl or Olympics. Viewers today are investing heavily to access live sports, and they want to see a return on their investment through value-add, high quality streaming on all devices, without glitches or delays, and with relevant customization to the game experience itself and also the ads that are served up to provide a tailored feel.

As leagues, federations, streaming platforms, and broadcasters navigate an increasingly fragmented sports rights landscape while trying to monetize content and consumers in new ways, what comes next for an industry in constant evolution? In an era where profits are king and audience retention is everything, how can content providers strike a balance between consumer experience and boosting the bottom line? I’ll take a shot at answering, at least in part, this massively complex question.

Live sports are everywhere and anytime — but at what cost?

Some things never change. Live sports have always been among the most valuable programming on television. However, the essence of how live sports are consumed has changed quickly. Many of us grew up in a world where we enjoyed every game, every weekday or weekend, on a handful of broadcast channels. Everyone knew where to find their favorite team or sport and the brands and advertisers knew where to spend their dollars. Fast-forward to 2025, where today, fans often need subscriptions to multiple services just to watch their favorite local team — let alone international tournaments or playoff and finals matches. Pursuing a fragmented, non-exclusive sports rights model has been an effective monetization strategy for leagues, federations, and rights owners, with sports' value reaching an eye-watering $30 billion this year, according to S&P Global.

PwC found the number of US viewers who stream a sports event at least once a month is projected to rise to over 90 million in 2025 — a significant jump from 57 million in 2021. The shift to streaming and new video distribution methodologies lends itself well to a ‘limitless’ rights buyer mentality, where content owners push for maximum return on high-value rights across a widening pool of global takers. At the same time, many leagues and federations are directly monetizing fans through direct-to-consumer (D2C) streaming strategies.

With sports rights investments showing no signs of slowing and rights owners pursuing new strategic routes to fan monetization, are fans starting to scratch their heads at eye-watering subscription fees and a lack of certainty around which services to maintain? Not knowing where a game will be aired is frustrating enough; finding out you need to take on another streaming package just to tune in is a tough sell. Text threads and social media posts from younger adult sports fans are full of messages cursing leagues and local teams when trying to watch their hometown baseball club or favorite out of market football team. Consumers don’t want to feel that the brunt of rights valuation inflation is being passed on to them.

Meeting live sports viewer demands

Here’s something we all understand. Ultra-low latency is one of the biggest requirements platforms need to keep live sports fans satisfied. Fans are engaging with live sports on multiple devices at the same time, and they don’t want to see or hear about a touchdown on their mobile phone before the big screen. Ultra-low latency is critical for providers that want to pursue interactivity-driven experiences, including in-game betting and wagering. Finding new ways to improve overall latency at every step of the video chain, from production through to playout and last-mile delivery, is essential today.

Beyond reducing latency to as close to real-time as possible, fans want richer, more immersive experiences that warrant their hefty investments in live sports subscriptions and match or exceed what they are used to from traditional broadcast channels. Excellent quality video with crisp audio to match is fundamental to captivating fan attention. Consumers expect more dynamic and appealing interactive data and graphics oftentimes including betting information. Most sports are becoming richer and deeper in terms of the analytics available each game, each play and fans want the option to see that information.

Feeling part of the action today means engaging at a more granular level with every element of a live sports event. Whether it’s seeing how many shots a player has taken that match, or discovering the latest odds in real-time to bet on the next scorer, fans want to be more immersed and in control over their experience. All forward-thinking sports streaming players are trying to enable this interactivity across their video distribution platforms and not just for the flagship game of the week shows. The challenge is how they can do it at better-than-good-enough quality while facing pressures on budgets and resourcing.

Customization is the winning play

Every sports and media business needs a customization strategy today. Consumers paying for high-value content want to feel valued — they need custom, fan-centric experiences that resonate on a deeper level. Beyond targeted advertising, leagues, and content providers have access to rich amounts of data and should understand their consumers better than ever. Whether by tailoring price points and subscription packages to meet consumers where they are, or providing local-language commentary that connects cultural communities to global live sports events, the industry needs to retain focus on delivering differentiated, unique experiences that fans deserve.

Into the crystal ball: What’s next for live sports video distribution

Retention is a challenge. Revenues are key. That’s why major platforms are pushing to offer the live sports tonnage required to keep viewers engaged. But where will this approach leave us in five or ten years’ time? Surging rights fees are causing some tier-one players to pause and think. They’re causing others to accelerate at full throttle. Increased market consolidation and emerging bundling - which quickly start to hint at traditional legacy models - promise more simplicity for consumers but an uncertain market future. One thing is clear — remaining relevant and retaining eyeballs is all about doing live and doing it well. Tier one players that invest in unique experiences and not just the biggest rights deals will be leading the pack. There’s a lot still to play for.

Learn more about the future of live sports broadcasting here.