Everyone knows by now that the broadcast business model has been fundamentally altered by the rise of digital streaming. Digital ad-spend has overtaken TV ad-spend in the US and UK, and by many accounts US television ad-spend is in a state of permanent recession (it is expected to bounce back slightly in the UK).
More than that, though, over-the-top (OTT) services have disassembled the bundles upon which lucrative television deals were built. Sports content, for instance, was once the foundation upon which most cable and satellite bundles were built, in what Stratechery’s Ben Thompson called last year as “the last pillar to crumble” in the traditional pay-TV model.
But OTT services, and people’s expectations about on-demand media, have finally reached that pillar: Among all the many skinny bundles that don’t include sports, there are individual subscription services like the WWE Network, and even efforts to create the ‘Netflix for sports’. The Guardian reports: