With Facebook’s venture into the world of football, we got to thinking about how sports rights can be monetized; does such an expensive bet on content work better in the OTT business model?
In a deal struck between the social media giant and Fox Sports, Facebook will offer live streams for double-headers during the group stage, four Round of 16 games and four quarter-final matches next season.
The streams will only be available for US users, though the move is another example of a growing trend of social media sites capturing sports rights.
Is there enough money to be made considering the vast amounts which are being forked out to secure the rights in the first place?
Both business models are reliant on the size of the audience.
The telcos for instance are betting on the assumption that the attractiveness of the secured sport will lead to an increase in the number of people taking up subscriptions, whereas the OTTs are (mostly) reliant on monetizing through advertising spend to accompany any broadcast on the platform.