On November 10,
2018, in our American Sport in the 21st Century class, we discussed sports and
the economy. We talked about major factors when it comes to generating revenue,
specifically media rights, which is the second largest revenue source for
collegiate and professional sports. In this article by Sports Pro Media, they
stated that in the United States, the rate of growth for the sport industry is
increasing rapidly, resulting in an estimated $80.4 billion by the end of the
2022. A large portion of this revenue is generated through media rights, which
is predicted to grow almost $24 billion from last year. There has also been an
increase in both gate revenue (increasing at a slower rate) and sponsorships.
Overall, there has been an increase across the board within the sport industry
from gate revenue and media rights. This article also talks about how these
numbers could be impacted through the streaming of games on phones and
nontraditional outlets such as Hulu, Netflix, and Amazon, endangering the
revenue stream for major networks broadcasting these games on television. Until
broadcasting contracts expire with leagues, only time will tell with what will
happen with revenue streams of major networks and the overall economic effect
on the sport industry.
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