By Tiffany M. Cunningham, Esq.
The utility of consumer data in new media sports deals sets them apart. Usage data like:
- the device & operating systems used
- content viewed
- time spent on platform (to name a few),
collected by Amazon, Netflix, YouTube, and the like, far transcend traditional KPIs, namely, subscriber numbers and television ratings. And while sports right’s valuations command billion-dollar license fees, data is the currency of tomorrow, and “tomorrow” is here. When it comes to new media, insights into consumer demographics and consumption patterns will be indispensable to every sports rightsholder’s distribution strategy.
Legacy Media Disillusionment
Legacy distribution models—that is, over-the-air (OTA) broadcasts and cable/satellite/telecommunication multi-channel video programming distributors (MVPDs)—entailed televised sports on regional sports networks (RSNs) and local stations. However, bloated channel packages, exorbitant monthly bills, and burdensome cancellation policies, on the one hand; and “next gen” consumers’ (i.e., Millennials, Gen Z, and Gen Alpha) penchant for innovation and social engagement, on the other, portend a demise.
New Media Migration
The digital era of content distribution, previously dominated by Hollywood, was poised for exploration by sports rightsholders. The recent migration of leagues to new media distribution models—that is, virtual MVPDs and other over-the-top (OTT) offerings pioneered by tech companies—is a response to consumer mandates. How do we know this? Consumer data. When compared to its Boomer and Gen X counterparts, the Next Gen Consumer (1) is more tech savvy & financially insecure; and additionally, (2) has less attention span & tolerance for appointment-viewing. They want innovative features that foster convenience (e.g., residential/global mobility, on demand flexibility), relevance (e.g., personalization of user interfaces and content/ad algorithms), and connectedness (e.g., interactivity). Today, streaming television viewership surpasses the sum of broadcast and cable, respectively, 44.8% to 44.2% (Nielsen, Streaming Reaches Historic TV Milestone, Eclipses Combined Broadcast and Cable Viewing For First Time, The Gauge™, May 2025, https://www.nielsen.com/news-center/2025/streaming-reaches-historic-tv-milestone-eclipses-combined-broadcast-and-cable-viewing-for-first-time/).
Consumption trend analysis is central to every media distribution strategy. A league that effectively ties consumer data to its objectives will see the most ROI.
League Objectives
The technological sophistication of new media licensees affords sports rightsholders an almost Epicurean menu of utilities (i.e., web, application, set-top box, connected TVs) and media offerings including:
- vMVPDs
- direct-to-consumer initiatives
- subscription video-on-demand
- advertising video-on-demand
- video-on-demand
- free advertisement-supported streaming television
- electronic sell-through
- social media channels (e.g., short-form, user-generated content, interactive live streaming).
There is no “one size fits all” in the new media context. So, it is incumbent upon each league to find its proverbial “glass slipper”; this query necessarily starts with objectives. For example,
- the NFL is seeking to expand its international footprint;
- the NBA is prioritizing sustained viewership in an 82-game regular season;
- the MLB is responding to “national package” imperatives by seeking the centralization of media rights (at the league level) currently encumbered by RSNs;
- the MLS, as a beneficiary of FIFA’s built-in international audience, is pursuing a domestic footprint to rival other American leagues;
- the NWSL is looking for “household name” recognition and sustained investment.
(NOTE: The above examples are non-exhaustive and not intended to imply league endorsement of this article.)
While NFL partnerships with Amazon and Netflix (each, an industry leader by global subscribers and footprint metrics) and NBA/MLS/NWSL hybrid media strategies (i.e., OTT ad-supported media + OTA broadcasts) respond to the above, MLB media rights are currently on the market. If I were advising them on a strategy, I’d recommend national partners and offerings that recapture youth and optimize global growth.
After a league has settled on partners/media that serve its objectives, it’ll need to effectuate the strategy. New media deals where terms are memorialized to accommodate the nimblest of pivots will yield the most benefits.
Deal Term Flexibility
In tech-driven specialties like “media distribution,” drafting that facilitates agile adaptability for innovation is vital. A deal lawyer who pursues this alongside business objectives is able to (1) preempt negative or unintended outcomes; and (2) employ expansive negotiation range in problem-solving. Pertinent provisions where such flexibility is achievable include: term, rights grant/reservation of rights, bundles, license fees, data ownership/sharing, and privacy/information security. If I were representing a league in new media negotiations, I’d recommend:
- shorter terms to keep pace with the novelty and rapidity of innovation
- narrowly tailored rights grants juxtaposed with robust reservations structured to non-exhaustively capture unknown media technologies/exploitations
- express prohibitions on bundling rights vis-à-vis third-party content, products, or services (absent league consent) to preempt incremental, unintended exploitations that implicate new license fees/terms
- flexible license fee structures (e.g., escalators, rev shares and other forms of contingent compensation) to account for innovation-driven unknowns
- joint ownership of consumer data, or at a minimum, reporting obligations for all consumer-permissioned disclosures
- most favor-nations that cover unforeseeable innovations and foreseeable innovations that may be currently infeasible
Given the perpetual innovation of distribution technologies, new media-related drafting is fundamentally an exercise in future-proofing.
To wrap this up, it’s an exciting time to be in sports media distribution. Technological advancement affords a seemingly infinite number of new ways to exploit and package content. And innovations, like AI, suggest there are no signs of slowing. The most successful distribution strategies are able to maximize reach, revenue, and customer service through the holistic integration of consumer data, sports rightsholder objectives, and forward-looking deal terms. While legacy media continues to be important, the consumer data dominance and unmatched technological sophistication of new media render it superior.
