Amazon Prime's NHL deal breaches cable TV's last line of defence: live sports

For years, cable TV has bled viewers and subscribers to streaminggiants like Netflix, Apple and Amazon. Now, those same companies are vying to stream live sports, one of thelast lines of defence when it comes to audiences paying big bucksfortraditional cable packages.

AppleTV+has a 10 year, multibillion-dollar deal to streamMLS soccer matches and also streams some MLB games. Netflix has paid to secure the rights to WWE wrestling.

But Amazon was among the firststreamers to aggressively bid on broadcast rights for a range of sports, and just this week, it added Monday night NHL games to its offerings.

"We're committed to driving more innovation for fans as we bring the NHL into more Canadian homes and across more devices on Monday nights than ever before," said Magda Grace, head of Prime Video, Canada, Australia and New Zealand,in a newsrelease.

Meanwhile,several U.S. media outlets have reported that Amazon is also poised to secure the rights to streamnext season's NBA games.

"This is a bad sign for the ever-shrinking cable TV business," said Wade Payson-Denney, an analyst withParrot Analytics.

Sports a lifeline for cable

In many lists ofthe most watched television shows of theyear,sports dominates.

In both Canada and the U.S.,the Superbowl occupiedthe top spot. In the U.S., the NFL claimed every other slot in the top 10 most watched telecasts. In Canada, hockey dominatedthe top 10 with a mix of world juniors and Stanley Cup playoff games.

The only non-sports program to make a dent in these lists was the 95th Academy Awards. The 2023 Oscars broadcast was the eighth most watched TV show in Canada and the 15th most watched in the U.S.

Those sports programs have been a lifeline for cable giants dealing with cord cutters as viewers abandon their cable packages.

"[Sports]used to be the one of the only thingskeeping people tied to cable," saidDavid Hardisty, an associate professor ofMarketing and Behavioural Science at the University of British Columbia's SauderSchool of Business.

But as moresports migrateto streaming platforms, Hardistysays thelong, slow decline of cable TV may speed up.

"Ithink this will accelerate the switch to streaming."

Traditional broadcasters not giving up

Buttraditional broadcasters aren't giving in without a fight.

This week, the president and CEO of Rogerssaid he plans to pursue a renewal of its deal to broadcast NHL games.

At a Canadian Club luncheon on Wednesday,Tony Staffieri said the company'sexisting agreementwith the NHL has been a "terrific deal for us."

That deal, announced in 2013,upended the Canadian hockey broadcasting landscape when Rogers paid a then staggering $5.2 billion for 12 years of hockey rights.The way the deal was structured meant Rogers would pay as much as $500 million per year to the NHL in the final years of the agreement, which is set to expirein two years after the 2025-26 NHL season.

"As we look to contract renewals, it's something we're very interested in and something we will chase and certainly expect to be at the table," Staffieri told the Canadian Club lunch crowd.

No wonder. Hockey audiences are up significantly this year with four Canadian teams qualifying for the Stanley Cup Playoffs.

That has been a welcome boost in a time when traditional broadcasting has been clobbered by dwindling audiences and slipping ad revenue. But as more power shifts to the streamers, audiences will be increasingly caught in the middle.

Cord cutters left traditional cable because many felt they were paying too much and not getting enough in return. Now though, many households are paying for Netflix, Amazon Prime, AppleTV+, Crave, Disney+ and more.

And as more sports shift tostreaming platforms, many consumers mayfeel the need to add yet another service to their monthly subscription bill.

"The leagues, platformsand athletes are set to win big from these deals," said Payson-Denney. "The fans, however, will not."

WATCH |Consumerswarned to get used to paying more for streaming:

Streamers warned to get used to paying more

1 year ago

Duration 1:45

Streaming industry watchers warn that the days of low streaming bills are over as more services, like Netflix and Disney+, make moves to increase profitability.

'The great re-bundling'

He says the streaming industry is headed for a consolidation of sorts, where viewers can groupa handful of subscriptions on a package deal that will come to resemble the traditional cable bundle that drove so many awayin the first place.

"The great re-bundling already underway is making it increasingly difficult and expensive for sports viewers to watch their favourite teams," Payson-Denneytold CBC News.

"A one-stop-shop will likely emerge by the end of the decade, but who or what is in control of that remains to be seen."

For now, sports will be broadcast onmultiple platforms all at once.And that meansfans who don't want to miss a game will likely have to navigate several different streaming services plus continue to pay for cable packages that still have key sports rights.