Parks: Streaming finds favor in American sports households

More than one-third of American broadband households are using streaming platforms to stay on top of live games from their favorite sports teams and organizations, according to new research released on Wednesday by Parks Associates.

The research firm’s latest report, “The New Live TV Model: Skinny Bundles, Sports, News,” found 39 percent of U.S. Internet households use on-demand streaming services to watch live events or sports — proving that sports fans are starting to move away from traditional pay TV like cable and satellite as more sports rights become available over streaming platforms.

One-quarter of households watch live video through free, ad-supported streaming television (FAST) services, while 21 percent do not watch live video at all, according to Parks Associates.

The findings illustrate how consumers increasingly rely on a combination of subscription streaming platforms, free streaming channels and other video services to access live programming. But the proliferation of distribution options has also made finding specific events more complicated, particularly as sports rights are divided among multiple services.

“Consumers value live content but struggle to find and access it,” Michael Goodman, the Director of Entertainment Research at Parks Associates, said in a statement. “The challenge for providers is making live content accessible. Sports is a good example, with programming now distributed across multiple services and platforms.”

The data from Parks Associates is not an outlier: Similar consumer-facing studies conducted by Hub Entertainment Research and tech developer Bango over the past few years have also shown an uptick in confusion among sports fans that correlates with shifting rights from broadcast and cable TV to streaming, with many enthusiasts finding it difficult to figure out which channel or app is showing a game at any particular point in time.

A survey released by Hub earlier this year illustrated just how confusing the landscape has become, with 90 percent of respondents expressing frustration at having to figure out where games are being offered on TV during the season.

That can be a problem for service providers, as live sports is one of two content categories that many Americans find important when determining what service to sign up for and stick with, according to Parks Associates. The other category is live news, which is widely available on free broadcast TV and free streaming apps and services.

Subscription video-on-demand services have responded by expanding their investments in live sports, news and special events, using the programming to attract subscribers and encourage existing customers to remain with their platforms. Some apps and platforms have also launched new features aiming to eliminate streaming sports confusion: Roku now offers sport and event-specific menus, called “Zones,” that point streamers to specific apps where games are taking place, and ESPN has a “Where to Watch” schedule within its app that includes information about games on its own networks and those played on competing platforms like Peacock and Paramount Plus.

Free, ad-supported streaming TV (FAST) services have pursued a different approach, developing curated linear channels that provide continuous access to programming without requiring a paid subscription.

The two distribution models are increasingly competing for audiences who want access to live programming without necessarily subscribing to a conventional cable or satellite television package. For streaming providers, Parks Associates says the challenge extends beyond acquiring programming rights to ensuring that viewers can easily locate and access the content they want.

“Competition for viewers is increasingly about more than the content itself,” Goodman said. “Providers need to deliver an experience that makes it easy for consumers to find, access, and move between live and on-demand programming.”

Parks Associates will take a deeper dive into their data and intelligence at their next “Future of Video: Business of Streaming” conference in Marina del Rey, California next month. The Desk is an editorial partner of the conference.