A recent report by market researchers Ampere Analysis has highlighted how sports media piracy is increasingly threatening the future of subscription television services. The study revealed that approximately half of respondents admitted to using illegal resources to watch paywalled sports content.
The company’s findings are a major concern for Arsenal and the rest of the English Premier League, who rely heavily on broadcast income to fund their operations.
The Premier League’s gravy train is under threat
According to Arsenal News, the Premier League’s current domestic broadcast deal is worth £6.7 billion over four years. Income from foreign rights holders nearly doubles that figure.
Clubs have been able to use that income to attract some of the best players in the world by offering transfer fees and salaries that teams in other top leagues cannot match. However, the significant surge in illegal viewing is threatening to derail the lucrative gravy train. The practice is particularly prevalent amongst younger viewers.
More than 70 percent of 18 to 34-year-olds admit to doing this regularly, while over half of 35 to 44-year-olds are doing it. The percentage drops to around one-third for people aged 45 to 64. This year’s Champions League final between Paris Saint-Germain and Arsenal was placed behind a paywall for the first time in more than 30 years.
There was widespread outcry from fans, who were asked to pay at least £4.99 to watch the game. Then-prime minister, Arsenal fan Sir Keir Starmer, was amongst the dissenting voices. An estimated 3.7 million IP addresses accessed illegal streams of the final in the UK, highlighting the scale of the piracy problem.
Financial greed is driving fans towards illegal services
The spiralling cost of subscription services is the main reason why fans are increasingly gravitating towards illegal streams of Premier League matches.
Fans in the UK can access up to 270 games via Sky Sports and TNT Sports, but the combined cost for both services makes a significant dent into household budgets. The long-standing blackout on broadcasting 3.00 pm games is another issue, particularly as fans in overseas markets are allowed to legally access those matches.
Doctored Amazon Fire TV sticks loaded with unauthorised software are the most common way fans are able to avoid paying expensive annual subscription fees. The devices are often sold for as little as £50.00 for 12 months access, which is a massive saving compared to the figures charged by Sky and TNT.
Many fans believe they are doing nothing wrong by streaming games in this manner, arguing that the subscription-based pricing model is extortionate. The shift in behaviour has impacted Sky and TNT, with both companies reporting significant losses in their most recent financial returns.
Streaming giants could shake up the marketplace
Illegal sports streaming reportedly costs the broadcasting industry about £700 million annually, which makes life difficult for companies in the sector. Increased interest in bidding for sports media rights from streaming giants such as Netflix, Paramount+ and Amazon Prime Video is another major threat. Their willingness to charge more affordable subscriptions makes them an attractive proposition for Premier League fans and the broader sports ecosystem.
If Sky and TNT continue to make losses, the Premier League may find it difficult to garner the same level of revenue from their next wave of broadcast deals. This would not only directly impact Arsenal and all of their rivals, but also clubs further down the food chain who rely heavily on handouts from the top-flight.
