From Edison to ESPN: Is OTT the Future of Sports Broadcasting?

In 1894, James J. Corbett and Peter Courtney competed in a boxing match in West Orange, New Jersey. This was certainly not the first nor last boxing match held in the United States, so what makes it so noteworthy? Held at Thomas Edison’s Black Maria studio, a film production studio that opened just the year before, it would go down in history as the first ever sporting event to be captured on film.

Further innovations followed swiftly. Just a few years later, the 1899 America’s Cup, a boating race, would be broadcast from New York Harbor in what is largely considered the first ever sports broadcast. The ensuing century would see innumerable live and recorded sporting events, the founding of ESPN, and the general sentiment that viewing sports remotely was increasingly the norm.

Of course, we can sit here and pick apart the past from radio broadcasts to interactive sports streaming apps, but what does that tell us about what’s around the corner?

 

What Drives Sports Streaming Innovation?

This article is about OTT (over-the-top) streaming, and we’ll certainly be getting into the nitty gritty of what that term means and why it’s important. But first let’s review some of the key influences behind the evolution of sports streaming.

 

Viewers Will Pay for Unique Experiences

Thomas Edison was just as much businessman as inventor, and this showed in his kinetoscope parlors (think pay-per-view meets those coin-op telescopes you see on vacation). For a while these parlors benefitted from the sheer novelty of a moving picture. However, Edison shrewdly saw the potential allure of presenting a recording of famous boxers in a competition, the outcome of which was unknown to anyone unless they paid for the experience.

So when the Corbett-Courtney fight was filmed, it was done so start to finish and without a live audience. People flocked to the kinetoscope parlors for a truly unique experience, drawn not by the technology, but by the content.

 

With Increased Demand Comes the Need to Scale

As it happens, viewing videos one person at a time through a viewfinder is not the most convenient method for either the viewers or those trying to make money off of the experience. Right around the same time that Edison was inventing pay-per-view boxing, another device was gaining popularity.

First patented in 1895, this device took what could be seen in a kinetoscope view finder and projected it onto a wall, making it possible for a group of people to view the same film at the same time. Enter larger viewership numbers and new monetization opportunities.

 

When Novelty Wears Off, Quality and Convenience are King

Ensuing decades would see increased attempts to make video cleaner and smoother. Soon sound would feature more prominently in films. Content would become more creative, nuanced, and complex. And technology would start finding its way into people’s homes in the form of televisions, DVD players, and high-speed internet.

 

Where Does OTT Fit In?

OTT streaming refers to the delivery of video content directly over the internet, bypassing traditional cable, satellite, and broadcast television platforms. Unlike traditional broadcasting, OTT doesn’t rely on dedicated infrastructure like TV towers or cable networks. Instead, it allows anyone with an internet connection to view content over the web on any internet accessible device, be it a smartphone, tablet, smart TV, or computer.

 

OTT vs. Traditional Broadcasting

Traditional broadcasting involves a one-to-many distribution model, using tv or radio signals to send a single transmission to a large number of viewers. OTT, on the other hand, operates on a one-to-one model, delivering content directly to individual viewers. This model makes it easier to employ streaming workflows like ABR (adaptive bitrate streaming), that require individual streams to be transcoded according to the needs of individual viewers. This method also makes it easier to tailor content to different devices.

 

OTT vs. Other Forms of Streaming

It might sound like OTT is just another name for video streaming. However, there is a distinction between these terms that comes to bear for sports streamers. As we dig into this distinction, understand that any content being streamed over the internet is OTT content and providers, like Netflix, that make this possible are OTT providers. 

The easiest way to appreciate this distinction in how these terms are used is by examining services like Hulu Live. OTT providers, of which Hulu is one, can stream what feels like broadcast television over the internet. This is best understood in contrast to streaming consumption models like video-on-demand (VOD), which allows viewers to select and consume content at their own pace. Technically, VOD streaming is also OTT streaming, but you’ll often just hear it referred to as VOD or streaming. When you hear people talk about OTT, they are frequently talking about live streaming over the internet in direct contrast to broadcasting – something that feels more traditional but is delivered in a non-traditional way.

 

OTT and Sports Streaming

So what does this have to do with sports content? The truth is, with many people still looking to watch cable television, the war between streaming and broadcast TV is far from won. And many networks have held tight to those assets they feel will keep people tuning in despite the overabundance of VOD content.

Case in point, Netflix’s groundbreaking streaming service launched in 2007. It would be four years until the first Superbowl was delivered OTT (and poorly at that). And even as recently as the 2024 Superbowl, half of viewers were still tuning in the old-fashioned way. That said, the number of Superbowl streamers in 2024 was still up 18% from the year before, indicating that however slowly, the wind is blowing in favor of OTT sports streaming.

Popular sports networks like ESPN are answering the call with streaming options to supplement their broadcast channels. There is specifically a desire not to lose the live appeal of sports content while also holding fast to traditional forms of monetization (i.e. ads), leading to a streaming model that looks a lot like live broadcast television – a type of streaming that is often specifically referred to as OTT.

 

OTT Sports Streaming Challenges

Thomas Edison was not the only one to appreciate the value of exclusive sports content. Exclusive licensing of live sporting events, especially high-profile ones, presents a challenge both for streamers who can’t afford to compete with the likes of ESPN and for viewers who suffer from increasingly greater subscription fatigue. As more companies vie for a piece of the pie, competition could drive down the cost of streaming rights or prevent exclusivity all together. Until then, these companies have other speedbumps to contend with.

• Global Licensing – Content rights get even more complicated when you consider that OTT streaming opens you up to a global audience. Global OTT regulations can be complex. Streamers must ensure they have the necessary permissions to stream live sports events across different regions.
• Bandwidth Limitations – High-quality live streaming requires significant bandwidth, which can be a challenge in regions with limited internet infrastructure. Sports streamers need to ensure that their content is accessible to all viewers, regardless of their internet speed. The aforementioned ABR workflow can help.
• Latency – Traditional broadcasting is more consistently low-latency than streaming. The latter can vary widely depending on location, bandwidth, protocols, and more. Ensuring low latency is crucial for live sports streaming, as delays can disrupt the viewer experience.

Granted some of these challenges are opportunities in wolf’s clothing. After all, the issue of global licensing assumes that you are able to stream globally, which is mired in even more red tape where traditional broadcasting is concerned.

 

OTT Sports Streaming Opportunities

The benefits of global reach can’t be overstated. Being able to stream to other countries opens up potential viewership and by extension monetization opportunities. You can stream new sports and appeal to new communities, building a robust library and fan base. That said, a budding OTT sports streaming platform has more to look forward to than just worldwide appeal. It starts with recognizing the unique opportunities OTT has over traditional broadcasting.

• Interactivity – Don’t just stream OTT because that’s where people are likely to view your content. OTT platforms can include functionality that traditional broadcasts just can’t, including live polls, chats, and games.
• Personalization – This benefit is twofold. Improve the viewer experience with personalized content recommendations. Increase the value of ad space with personalized ads based on viewer profiles and behaviors. 
• Control – Build a viewer experience that will keep fans coming back without having to invest in the expensive infrastructure required to create and broadcast your own network.
• Flexibility – Get creative with your content. Combine OTT live streaming with a VOD platform so viewers have a reason to tune in outside of game time.
• Equitability – You don’t have to be the Denver Broncos to build an OTT streaming platform. Streaming technology has gotten increasingly more accessible for those working with a smaller budget.
• Insights – OTT platform providers offer analytics tools for detailed insights on viewer behavior, allowing sports streamers to understand their audience better and optimize their content strategy.

These benefits further support the theory that sports content is migrating to the OTT streaming space. Not only is this where the viewers are, it’s also where you’ll find the obvious benefits, improved monetization, and more equitable access to viewership.

 

OTT As the Great Equalizer

There’s a democratizing aspect to OTT streaming that makes it easier for organizations that don’t have the same muscle as ESPN or the National Football League (NFL) to be successful. It lowers the bar for entry while dramatically increasing the ceiling for what is possible. In other words, while some sports organizations might be dragging their feet, resting on their popularity, others have a chance to do something truly unique and stand out in a field that’s felt largely monopolized.

This is true of somewhat less popular sporting organizations, like Major League Baseball (MLB), whose early adopted app still sets the bar for major sporting organizations within the US. This can also be true of your app, no matter how niche your audience or restricted your budget. In this way, the greatest opportunity presented by OTT sports streaming is that there is so much opportunity.

 

Strike While the Iron is Hot

OTT streaming offers the potential for unique experiences and convenience that we’ve already established viewers crave. It also offers the scalability that streamers need. In short, it answers the call of every lesson learned from the first kinetoscope parlors through the inception of ESPN.

It’s taken many sports broadcasters and organizations time to fully embrace the benefits of OTT streaming. But it won’t take forever. Even as networks like ESPN dip their toes in the streaming space, other OTT sports streaming platforms are cropping up to fill an obvious need, whether dedicated to specific teams or catering to a broader demand for content.

Right now is a sweet spot for would-be sports streamers who don’t have the budget to throw away on experimental measures. The ground has been broken. Demand exists. And there’s still time to stand out before the market is over-saturated with OTT sports streaming options. As Thomas Edison, the world’s first sports video content creator, would say, “There’s a better way to do it. Find it”.