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Why Pay TV Providers Can't Count On Live Sports Consumers For Much Longer

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Live sports is considered to be "cord-friendly." In other words, Pay TV cable service providers like Comcast currently feel comfortable that people will keep paying for TV service if they truly want access to a wide variety of live sports. Yet, that connection to the cord may not last forever.

Today, roughly 81% of sports fans subscribe to Pay TV and 89% of sports fans say that watching sporting games live is essential, according to PwC's fifth annual TV and video consumption survey report that looks at consumers' relationship with "the cord" and how businesses can excel in this new order.

But concerning for the companies relying on continued use of the cord is that 82% of traditional Pay TV subscribers would trim or cut their subscription if they no longer needed it to access live sporting events.

One looming threat is presented by the NFL, which recently signed a new five year deal with Verizon that will give the league $500 million per year in exchange for digital streaming rights. Anyone with a mobile phone who accesses Verizon's Yahoo platform will be able to live stream in-market NFL games, playoffs games and the Super Bowl. This is a major concern to Pay TV providers, since so many people responding to PwC's survey said they would trim or cut their cords if there existed alternative ways to access live sports.

Another issue for the Pay TV industry is the upcoming unveiling of ESPN+, a direct-to-consumer streaming service that will not only provide sports shows and documentaries, but also live events. It launches early 2018.

"It’s about going to where the technology is, and it’s pretty clear that the technology of distributing video is going over the top," says ESPN President John Skipper. "What we’re really doing is preparing to be able to thrive in the future however the business models, the way people consume content, evolves."

And then there is the issue of ESPN's parent company, Disney's forthcoming purchase of 21st Century Fox. By acquiring 21st Century Fox, ESPN will be able to stream even more live events based on the inclusion of Fox's extensive regional networks.

PwC's report indicates that Pay TV subscribers realize that they have alternatives. 90% of them believe the options for watching live sports have expanded in recent years. However, those options will multiply in the near future, and Pay TV providers must be very cognizant of what that may mean for cord cutting in 2018 and beyond.

Darren Heitner is the Founder of South Florida-based HEITNER LEGAL, P.L.L.C. and Sports Agent Blog. He authored the book, How to Play the Game: What Every Sports Attorney Needs to Know.