The Power of Sports Rights in Media Monetization

The predictability and uniqueness of sports make it a powerful tool for media companies to reach specific demographics. Unlike creating original content like sitcoms, sports rights are a direct way to connect with consumers who already have a clear interest. In the past, leagues sold their rights to a few companies, which then distributed them through cable providers. However, the landscape is shifting towards direct-to-consumer models, empowering leagues to potentially monetize their rights more effectively by managing the distribution themselves. The case of WWE in 2013 demonstrates the balancing act between owning content distribution and the attractiveness of selling rights to maximize profits.