Streaming platforms pay billions upfront for exclusive sports rights, such as NFL Sunday Ticket, which costs over $2 billion per year, or MLB out-of-market packages that run into the hundreds of millions. These costs are fixed and non-refundable, meaning the platform must cover them whether or not subscriptions rise. If subscriber growth falls short, the platform faces a real danger of negative returns, forcing potential price increases that could drive away casual viewers or even cuts to other content budgets. A real-world example is Amazon Prime’s deal for NFL Thursday Night Football, which costs over $1 billion per season. The goal is to attract or retain millions of subscribers, but if the deal only generates modest growth, Amazon ends up effectively losing money on the investment, highlighting how risky and costly these sports rights can be for streaming services.
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