Big Tech’s takeover of TV, streaming and sports rights is accelerating, and veteran media executive John Malone says consolidation is now all but certain as the streaming market becomes crowded. The shift is powered not just by deeper pockets, but by tech companies’ ability to scale, reach global audiences, and deploy AI-driven personalization to keep users inside their ecosystems.
Consolidation as the new rule
Malone argues that economies of scale will drive a few winners to dominate the landscape. Traditional media players often wrestle with fragmented libraries and high production costs, especially as tech platforms treat entertainment as a means to lock in subscribers and broader ecosystem engagement. In practical terms, Amazon has poured around $1 billion into Thursday Night Football, while Apple has committed roughly $2.5 billion to MLS rights. These bets go beyond content—they’re designed to bolster Prime memberships, device loyalty, and cloud services use. The payoff is already visible: Prime Video subscriber numbers are rising sharply, and Apple’s sports investments are feeding stronger device sales.
The numbers underpinning the shift are sweeping. U.S. sports rights spending is on course to reach about $30.5 billion in 2025, a steep jump over the last decade. Tech firms are outbidding traditional broadcasters by offering global reach and data-backed targeting. Live events on streaming platforms—like a Netflix NFL Christmas game that drew tens of millions of viewers and Tyson vs. Paul delivering subscriber bumps—illustrate how live sports can drive growth for new-era distributors.
A consumer landscape that favors tech-driven models
The way people watch sports and entertainment is changing fast. By 2025, roughly 90 million U.S. viewers were streaming sports monthly, up from about 57 million in 2021. Younger audiences—Gen Z and millennials—prefer short-form, social-driven content and real-time comments over traditional broadcasts. Platforms such as TikTok and YouTube have become go-to hubs for highlights, behind-the-scenes moments, and live commentary, fragmenting attention and prompting creators and rights-holders to rethink how they package and distribute content.
These shifts have real consequences for valuations and strategies. Traditional media stocks have underperformed tech peers, and many are rethinking bundles and direct-to-consumer approaches. The ESPN-Fox bundle, once a staple, faces competition from stands-alone streaming services and broader ecosystem play. For some players, consolidation—such as potential mergers between Warner Bros. Discovery and Paramount, or Fox and Disney’s broader moves—appears increasingly likely as a path to scale and scope.
Risks and opportunities for investors
The rise of Big Tech in sports and entertainment presents a double-edged sword. On the upside, Apple, Amazon and other giants benefit from cross-subsidized ecosystems that can sustain long-tail investments in sports rights, tech, and distribution. On the downside, traditional media faces ongoing ad-revenue pressure and subscriber churn as viewers migrate to cheaper, ad-free streaming options. Regional sports networks have already lost a sizable share of their audience since 2020, underscoring the urgency for adapt-or-die strategies.
There are clear routes to resilience. Companies that weave sports and entertainment into broader experiences—such as Disney, which blends sports rights with streaming, parks, and consumer products—can tap multiple revenue streams. Niche platforms that offer hyper-personalized content or hybrid models—combining live events with social-media engagement—could carve out profitable niches even in a hyper-competitive environment.
What this means going forward
For investors and industry watchers, the message is to favor players with scale, rich data, and strong ecosystem integration. The era of single-service media companies surviving on pass-through distributions looks increasingly limited. Traditional media will likely need to partner with technology platforms, pursue strategic mergers, or innovate aggressively to regain pricing power and audience growth.
Positive take and outlook
There is a path to a more integrated media experience that benefits consumers: unified, cross-genre bundles, personalized recommendations, and live events that are easy to access across devices. While the consolidation trend is real, it can also drive efficiencies, better investment in high-demand sports, and more compelling consumer experiences when done thoughtfully. The future belongs to entities that can adapt, scale, and seamlessly connect content, services, and devices.
Takeaways for readers
– Expect fewer, larger players to control most sports rights and streaming bandwidth.
– Watch for consolidation moves that combine content libraries with direct-to-consumer platforms and theme-park or merchandise ecosystems.
– Pay attention to platforms that blend live events with social engagement and personalized viewing experiences.
– Consider the impact on pricing models, bundles, and ad-supported versus subscription strategies.
In summary, the industry is at a crossroads where scale, data, and ecosystem power will determine who leads the next era of television, streaming and sports. Those who can align content with global reach and immersive user experiences are best positioned to thrive as the landscape continues to evolve.