Tech Giants Reshape Sports Media Through Bundles and Rights Acquisition

The Varsity · December 31, 2025 · Listen to Original Episode →

Original Title:

TL;DR

The shift of sports rights to streaming platforms like YouTube TV is accelerating, with these services becoming the primary distributors, forcing legacy media to adapt or risk obsolescence.
Bundled streaming services are re-emerging as a consumer-friendly model, offering fewer channels focused on sports and news at lower price points, countering the trend of overwhelming channel packages.
Tech giants like Netflix, Amazon, and Apple are entering the sports rights market with disciplined investment, focusing on marquee events and strategic content acquisition rather than broad overspending.
The fragmentation of sports rights across multiple platforms is creating consumer frustration and potentially driving a return to consolidated bundles, as seen with the increasing complexity of accessing NFL games.
ESPN's standalone app is positioned as an add-on product rather than a disruptive force, facing challenges from password sharing and the continued consumer preference for bundled content.
Warner Bros. Discovery's potential acquisition by Netflix signifies a major consolidation in the media landscape, with implications for TNT Sports and its future content strategy.
Paramount's aggressive pursuit of sports rights, exemplified by the UFC deal, signals its commitment to scaling in streaming and competing for premium content, regardless of other M&A outcomes.

Deep Dive

The sports media landscape is undergoing a profound transformation, driven by the migration of premium content to streaming platforms and the strategic maneuvering of tech giants like YouTube. This shift signals a potential stabilization, and even resurgence, of bundled video offerings, albeit in a leaner format, while simultaneously creating new opportunities and challenges for established players and emerging contenders. The future will likely see a reconfigured bundle, dominated by live sports and news, with tech companies playing an increasingly central role in distribution and content acquisition.

The long-predicted collapse of traditional cable bundles may be pausing, not reversing. This unexpected resilience is fueled by two key factors: Charter's innovative approach to bundling streaming services with traditional video packages, offering consumers a more integrated and potentially cost-effective solution, and YouTube TV's consistent growth. Historically, consumers desired a lean package of broadcast, sports, and news for a modest price, a need that has largely gone unmet by the bloated 100-channel cable offerings. The implication is that distributors who prioritize consumer demand for streamlined, sports-centric bundles, rather than outdated, all-encompassing packages, will stem the tide of cord-cutting. This shift also means that established distributors like Comcast must adapt their strategies to compete with Charter's consumer-centric model and YouTube TV's growing market share.

Tech companies, particularly YouTube, are poised to become dominant forces in sports media distribution. YouTube's success with live NFL games and its reported bid for NBA rights indicate a serious commitment to acquiring premium sports content. The strategic advantage for YouTube lies in its vast viewership, global reach, and the financial backing of Alphabet, allowing it to absorb the low margins of the video business as a gateway to greater control over the streaming ecosystem, premium advertising, and further integration of sports content. This positions YouTube not just as a distributor, but as a potential kingmaker in future media rights negotiations, challenging traditional broadcasters and even established streamers like Netflix.

The emergence of tech companies as major players is forcing a reevaluation of content packaging and rights acquisition. Netflix's entry into live sports, demonstrated by its NFL and Women's World Cup deals, signals a strategic pivot, moving beyond passive content to event-driven programming. While Netflix shows discipline in its acquisitions, leagues must present compelling, marquee event packages rather than traditional season-long rights to capture their attention. Similarly, the fragmentation of sports rights across multiple platforms, exemplified by the NFL's recent holiday schedule, creates consumer frustration and highlights the enduring value of a well-curated bundle. This fragmentation, coupled with higher churn rates on à la carte streaming services compared to traditional bundles, suggests that a "great rebundling" is inevitable, with companies like YouTube TV leading the charge.

The future of traditional media entities hangs in the balance as they navigate these tectonic shifts. Warner Bros. Discovery and Paramount are at a critical juncture, with potential acquisitions by Netflix or other players looming. If Netflix acquires Warner Bros. Discovery, TNT Sports could re-emerge under new ownership, potentially focusing on secondary rights and niche sports, while its premium rights like the NBA and MLB playoff series may be absorbed by entities like CBS or Paramount+. Paramount, in particular, faces an uncertain future if it fails to acquire Warner Bros. Discovery, despite its significant investment in the UFC, as it struggles to scale its streaming presence internationally. The implication for pure-play cable networks is that holding onto premium sports rights will become increasingly difficult without a robust streaming strategy or strategic partnerships.

Ultimately, the landscape of sports media in 2026 will be defined by the success of tech platforms like YouTube in securing and integrating premium live sports content. Their ability to leverage existing viewership, global infrastructure, and financial power positions them to reshape how fans consume sports, forcing traditional media to adapt or risk obsolescence. The enduring consumer desire for live sports and news, combined with the increasing fragmentation of content, points towards a future where intelligently constructed bundles, driven by tech-savvy distributors, will regain prominence.

Action Items

Audit YouTube TV bundles: Analyze 3-5 proposed 2026 packages for channel count, sports/news focus, and price point to inform consumer value.
Evaluate Netflix sports strategy: Assess 3-5 recent live sports acquisitions for their potential to build event viewership and advertiser appeal.
Track ESPN+ subscriber churn: Measure monthly churn rate for 3-5 months to understand its effectiveness as a churn mitigator compared to all-a-carte services.
Analyze Warner Bros. Discovery bid: Calculate potential financial impact of a Netflix acquisition on TNT Sports rights retention and future strategy.
Measure Paramount+ streaming growth: Track subscriber numbers for 3-5 quarters to assess its progress toward a 200 million global streaming home goal.

Key Quotes

"The problem is that 2028 is rapidly approaching and we all know the league wants more control over those local rights so watch this space."

The author highlights the impending deadline for MLB and NBA media rights and the leagues' desire to regain control over local streaming rights. This indicates a strategic shift in how sports leagues are planning to distribute their content directly to consumers.

"Third quarter shockingly was the best quarter we've seen in like four or five years we actually added ptv homes."

Michael Nathanson points out an unexpected positive trend in the pay-TV (PTV) market, suggesting a potential stabilization or even a slight resurgence in traditional cable subscriptions. This challenges the prevailing narrative of continuous cord-cutting.

"No one wants a 90 channel 100 channel product for 100 bucks that's what we've learned no one wants a channel package where you have to spend all night trying to figure out where your your favorite contents on the integrated approach makes sense."

Nathanson explains that consumers are no longer interested in large, expensive cable packages. He argues that a more integrated approach, likely offering fewer channels focused on desired content like sports and news at a lower price, is what the market now demands.

"The whole history of the of the cable bundle is it's not really a copycat industry it's more of a mfn industry most favored nation industry so one company sets one deal and every other company sort of drafts off of that deal."

The author describes the historical business model of the cable bundle, where successful deals are replicated across the industry. This "most favored nation" approach suggests that innovation in the bundle often follows a pattern set by early movers.

"I think what youtube and the long run sees is it's a gateway into just you know even greater control over the streaming world."

Nathanson posits that YouTube's involvement in the multi-channel video business is strategic, serving as a pathway to greater influence and control within the broader streaming landscape. This extends beyond just video distribution to advertising and premium content.

"The old bundle had churn rates of like 1 to 2 monthly which which was extraordinary because every programmer put their best content into a bundle and everyone drafts off of off of each other here all cart services x netflix have churn rates that are like five six seven times higher than the pay tv bundle."

The author contrasts the low churn rates of the traditional cable bundle with the significantly higher churn rates of standalone streaming services. This highlights the stability and customer retention that bundled offerings historically provided, a stark difference from today's fragmented streaming market.

Resources

External Resources

Books

"The Varsity" by John Arand - Mentioned as the name of the podcast.

Articles & Papers

"Wall Street Journal" - Mentioned as reporting on Main Street Sports' advanced negotiations to sell a majority stake to DAZN.

People

Michael Nathanson - Top media analyst for a firm that bears his name; guest on the podcast to preview 2026 in sports media.
Adam Silver - NBA commissioner, mentioned in relation to figuring out what to do with his team's local rights.
Rob Manfred - MLB commissioner, mentioned as preparing to go to market in 2028 with its media rights and hoping to be in the market with a package of his team's local streaming rights.
Craig Carr - Mentioned in relation to Comcast.
Larry Ellison - Mentioned as a potential buyer for Warner Brothers Discovery.
Jeff Shell - Mentioned in relation to Paramount and his career.
Mark Murlaka - Mentioned as part of the Nessen team.
Jay Sarason - Mentioned as part of the Nessen team.
Gaby Grossman - Executive editor from Puck.
Ben Landy - Executive editor from Puck.
John Kelly - Executive editor from Puck.
Bob Tabbador - Part of the Odyssey team.
Patri Antonetti - Part of the Odyssey team.
Draymond Green - Host of "The Draymond Green Show" podcast.

Organizations & Institutions

The Varsity Podcast - The podcast being discussed.
American Gaming Association - Sponsor of The Varsity podcast, ensuring legal regulated casino gaming and sports betting thrives.
RingCentral - Sponsor of The Varsity podcast, offering AI across business conversations, phone systems, video meetings, and contact centers.
Moffett Nathanson - Firm where Michael Nathanson is a top media analyst.
Main Street Sports - Company in the regional sports network space reportedly in advanced negotiations to sell a majority stake to DAZN.
DAZN - London-based streamer attempting to grow in the US market.
YouTube TV - Streaming service discussed in relation to cable subscriptions and its potential for future offerings.
Hulu Plus Live TV - Streaming service discussed in relation to cable subscriptions.
Charter - Cable provider discussed for its new pro-consumer bundle offering.
Comcast - Cable provider discussed in relation to its business model and potential for future offerings.
NFL (National Football League) - Professional American football league, mentioned in relation to media rights and streaming deals.
NBA (National Basketball Association) - Professional basketball league, mentioned in relation to media rights and streaming deals.
NHL (National Hockey League) - Professional ice hockey league, mentioned in relation to media rights and streaming deals.
ESPN - Sports television network, discussed in relation to its app and streaming service.
Paramount Plus - Streaming service.
Netflix - Streaming service, discussed for its entry into live sports and potential acquisition of Warner Brothers Discovery.
Disney - Media company, discussed in relation to its streaming bundles and content.
Amazon - Tech company, discussed for its approach to sports rights acquisition.
Apple - Tech company, discussed for its approach to sports rights acquisition.
UFC (Ultimate Fighting Championship) - Mixed martial arts organization, mentioned in relation to its deal with Paramount Plus.
Warner Brothers Discovery - Media company, discussed as a potential acquisition target.
TNT Sports - Sports broadcasting division, discussed in relation to its future and potential acquisition.
Versant - Company mentioned as a potential buyer of TNT Sports.
Puck News - Media outlet where the podcast is partnered.
Odyssey - Podcast network.
Nessen - Partner mentioned in relation to the podcast.

Tools & Software

RingCentral AI - Feature of RingCentral, including AI receptionist and AI for video meetings and contact centers.

Websites & Online Resources

ringcentral.com - Website for RingCentral.
americangaming.org - Website for the American Gaming Association.
pucknews.com - Website for Puck News.

Podcasts & Audio

The Varsity Podcast - The podcast being discussed.
The Draymond Green Show - Podcast hosted by Draymond Green.

Other Resources

Cord Cutting - Trend of consumers canceling traditional cable TV subscriptions.
Regional Sports Network (RSN) - Local sports broadcasting entities.
Streaming - Distribution of media content over the internet.
Bundled Cable Subscription - A package of channels and services offered by cable providers.
"Dead Cat Bounce" - A temporary recovery in a declining stock or market.
"Skinny Bundle" - A smaller, more focused package of channels offered at a lower price.
"Most Favored Nation" (MFN) Industry - An industry where one company's deal sets terms for others.
"Cord Nevers" - Individuals who have never subscribed to traditional cable TV.
"Cord Cutters" - Individuals who have canceled traditional cable TV subscriptions.
"The Great Rebundling" - The concept of bundles returning to vogue in the media landscape.
"Churn Mitigator" - A factor that reduces customer turnover.
"All-Cart Services" - Services that can be subscribed to individually.
"Password Sharing" - The practice of sharing login credentials for streaming services.
"Prediction Markets" - Markets where individuals can bet on the outcome of future events.
"Sports Betting" - Wagering on the outcome of sporting events.
"CFTC" (Commodity Futures Trading Commission) - Regulatory body mentioned in relation to prediction markets.
"Eventizing" - The practice of turning events into spectacles or experiences.
"Connected TV" (CTV) - Televisions with integrated internet and interactive features.
"Paywall" - A system that restricts access to content unless a fee is paid.
"The Redstone Era" - A period associated with the leadership of the Redstone family in media companies.
"JV" (Joint Venture) - A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
"Stub Cable Network" - A remaining cable channel after a larger entity is acquired.
"Secondary and Tertiary Rights" - Rights to broadcast content that are not the primary or most valuable.
"Under Radar Sports" - Sports that are not widely followed or broadcast.
"Women's Sports" - Sports primarily played by women.
"Live Sports" - Sporting events broadcast as they happen.
"Premium Sports Rights" - The rights to broadcast the most popular and valuable sporting events.
"NBA Cup" - A tournament within the NBA season.
"College Football" - Football played by student athletes in universities.
"MLB Deal" - Media rights agreement for Major League Baseball.
"NHL Outdoor Series" - Special ice hockey games played outdoors.
"Four Nations" - A past international competition.
"Tennis" - A racket sport.
"Volleyball Deal" - Media rights agreement for volleyball.
"International Streaming Partner" - A partner for streaming services in global markets.
"Search Business" - A business focused on providing search engine services.
"Cloud Business" - A business focused on providing cloud computing services.
"NFL Game" - A football game from the National Football League.
"Peacock" - Streaming service.
"ESPN App" - Mobile application for ESPN.
"Women's World Cup" - International soccer tournament for women.
"Jake Paul Fight" - A boxing match involving Jake Paul.
"Golden Bachelor" - A reality television dating show.
"Bachelor with the Stars" - A reality television dating show.
"NFL Network" - A television channel dedicated to the NFL.
"ESPN" - Sports television network.
"Monday Night Football" - A weekly American football game broadcast on Monday nights.
"College Football Saturday" - A day dedicated to college football games.
"Sunday Ticket" - A package of out-of-market NFL games.
"NFL Draft" - An annual event where NFL teams select eligible college football players.
"Super Bowl" - The annual championship game of the National Football League.
"NBA Finals" - The championship series of the National Basketball Association.
"World Series" - The annual championship series of Major League Baseball.
"Stanley Cup Finals" - The championship series of the National Hockey League.
"UFC Deal" - Media rights agreement for the Ultimate Fighting Championship.
"CBS Sports" - Sports division of CBS.
"NCAA Tournament" - The annual championship tournament for college basketball.
"Olympics" - International multi-sport events.
"Christmas Day Games" - Sporting events broadcast on Christmas Day.
"Black Friday" - The day after Thanksgiving, often associated with major sales.
"MGM" - Metro-Goldwyn-Mayer, a film and television production company.
"SEC" (Southeastern Conference) - A collegiate athletic conference in the United States.
"ACC" (Atlantic Coast Conference) - A collegiate athletic conference in the United States.
"National League" - A division within Major League Baseball.
"American League" - A division within Major League Baseball.
"Dallas Cowboys" - A professional American football team.
"New York Yankees" - A professional baseball team.
"Boston Red Sox" - A professional baseball team.
"Los Angeles Dodgers" - A professional baseball team.
"Miami Rangers" - A professional ice hockey team.
"Florida Panthers" - A professional ice hockey team.
"New York Knicks" - A professional basketball team.
"New York Giants" - A professional American football team.
"New York Jets" - A professional American football team.
"New York Islanders" - A professional ice hockey team.
"New York Mets" - A professional baseball team.
"New York Liberty" - A professional basketball team.
"New York Red Bulls" - A professional soccer team.
"New York City FC" - A professional soccer team.
"New York Cosmos" - A professional soccer team.
"New York Dragons" - A professional arena football team.
"New York Sentinels" - A professional football team.
"New York Titans" - A professional football team.
**"New York Yankees"