By David Butler
Sports broadcasting markets across Europe have been disrupted more than usual by piracy - on this iteration of the piracy cycle IPTV is the culprit. Recently DAZN investigated losses through piracy in France; they estimated a loss of 400 million euros per annum, although I think they are assuming that the alternative to piracy is consumers just buying a subscription, which is not a reasonable assumption.
Just last week La Liga President Javier Tebas called piracy “the biggest challenge in the world of football and the sports industry in general.” He claimed it cost La Liga roughly €700 million each season. He appealed to the 10 commandments and consumer morals relating to stealing. He stopped there however with the biblical references and did not extend to ‘Thou shalt not covet’ or make any reference to greed…
My view is that IPTV could grow without the internet service providers stepping in. At present, ISP's may not have an incentive to do so, but legal changes could make it a requirement. At present droves of fans are out on the high seas and this could increase. Why? The current price points of services, the proliferation of streaming firms holding rights (which require consumers to buy multiple subscriptions) and the absence of broadcaster competition at a match level. It is now very expensive for the consumer to view the matches of one club legally. The music industry had to learn a similar lesson historically, perhaps sports broadcasters will eventually learn it too.
Sports broadcasting markets across Europe have been disrupted more than usual by piracy - on this iteration of the piracy cycle IPTV is the culprit. Recently DAZN investigated losses through piracy in France; they estimated a loss of 400 million euros per annum, although I think they are assuming that the alternative to piracy is consumers just buying a subscription, which is not a reasonable assumption.
Just last week La Liga President Javier Tebas called piracy “the biggest challenge in the world of football and the sports industry in general.” He claimed it cost La Liga roughly €700 million each season. He appealed to the 10 commandments and consumer morals relating to stealing. He stopped there however with the biblical references and did not extend to ‘Thou shalt not covet’ or make any reference to greed…
My view is that IPTV could grow without the internet service providers stepping in. At present, ISP's may not have an incentive to do so, but legal changes could make it a requirement. At present droves of fans are out on the high seas and this could increase. Why? The current price points of services, the proliferation of streaming firms holding rights (which require consumers to buy multiple subscriptions) and the absence of broadcaster competition at a match level. It is now very expensive for the consumer to view the matches of one club legally. The music industry had to learn a similar lesson historically, perhaps sports broadcasters will eventually learn it too.
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