Analysts have reported that with the federal ban lifted on sports betting, TV networks stand to benefit a lot. Now that states can individually decide whether they want to allow sports betting, many are expected to legalize the activity. As this happens, analysts predict that TV networks that cover live sporting events could see a significant increase in advertising revenue.
TV Networks in the USA should see increased ad revenue as more states legalize sports betting.
TV Networks Could See Big Ad Revenue Increase
The analysis has been conducted by Ben Swinburne, a Morgan Stanley media analyst. Swinburne believes that as sports betting spreads across the USA, the big sports betting companies will spend significant sums of money on advertising. This could lead to a 2% increase in ad revenue for big networks like Fox and CBS. In the next few years, numerous states are expected to allow sports betting. Swinburne believes that sports books will be spending between $5 and $10 billion a year on advertising by 2025.
This will no doubt put a very big smile on the faces of the country’s four main TV networks (Fox, CBS, ABC, NBC). All four broadcast major sporting events, like NFL games, with ABC using its subsidiary ESPN for sports broadcasts. However, football has been experiencing decreased rating over the last few years, with ratings down nearly 10% in 2017.
TV Networks Not the Only Ones to Benefit
When Daily Fantasy Sports burst onto the scene, the commercial breaks during sporting events were full of adverts. The two main DFS operators are thought to have paid TV networks $400 million for adverts in 2015 alone. Sportsbooks will likely take the same approach, as they compete with each other for business.
Some are also expecting that as sports betting is legalized, interest in various sporting events will increase as well. TV networks won’t be the only ones to benefit, as increased interest from viewers will mean more money for the leagues themselves.