Over the last decades, the sales of broadcast rights to sporting activities have become a profitable business. Yet, the increased competition between the broadcasting companies has led to an inflated price for sports translation (Taylor & Thomass, 2017). As a consequence, content delivery networks (CDNs) were the solution since they could ensure the availability of services and provide high-quality speed. However, they also face challenges and pose several economic implications for sports broadcasting.
Primarily, CDNs are associated with high prices for their distribution in the global broadcasting industry. Additionally, the growth and scale of these networks presume lower quality of streaming, slower response time, decreased throughout, and some other symptoms depending on the application. Therefore, a failure to maintain capacity, performance, and functions as the business grows is observed among CDN vendors (Oh & Kang, 2020). Finally, the delivery may vary depending on the device, its features, and the user’s location. Yet, these significant issues can be fixed since CDNs are highly influential as streaming services.
Sports broadcasting is now the primary domain of CDNs, and it is likely to replace such distribution channels as cables or satellites within the following decades. Broadcasting revenues have soared and are now as significant as gate revenues in major clubs’ overall revenue. However, excessive coverage of games on television can lead to a decrease in paid attendance (Kariyawasam & Tsai, 2017). The broadcasting rights cost much to obtain, especially for wireless networks, because the demand is rising. Besides, the sports teams request enormously expensive contracts with CDNs, which leads to an increased fee for the audience. Consequently, despite the massive popularity of wireless content delivery services, the enrollment fee increases annually due to the market’s competitiveness.
References
Kariyawasam, K., & Tsai, M. (2017). Copyright and live streaming of sports broadcasting. International Review of Law, Computers & Technology, 31(3), 265−288. Web.
Oh, T., & Kang, J.-H. (2020). Analysis of the sports broadcasting market in the television broadcasting industry. European Sport Management Quarterly. Web.
Taylor, G., & Thomass, B. (2017). Sports rights and public service media/public broadcasting: Case studies on economic and political implications. International Communication Gazette, 79(2), 111–119.