Saga of American Live Sporting Events, Streaming Platforms, and Cybersecurity Law
Misha Solodovnikov
The global Over-The-Top (OTT) Sports[1] Streaming market[2] is projected to soar to $325 billion by 2024 and $420 billion by 2028[3]. However, amidst this growth[4], the industry faces staggering losses. Key players in the streaming market include Paramount+, ESPN+, Peaco*ck, Prime Video, Apple TV+ and regional streaming services such as Monumental Sports. Sports content stands as the final stronghold within the linear TV ecosystem, dominated by live events such as the Super Bowl and NCAA's March Madness, which collectively commanded over 95% of viewership last year. Rapid shift towards streaming is underway, as direct-to-consumer services progressively infiltrate the live sports broadcasting arena. As consumption habits of sports enthusiasts evolve, media rights agreements and network economic models are adapting to embrace the opportunities afforded by the digital age.
However, transitioning from cable to streaming poses significant security risks for licensors and IP rights owners. Many exploit readily available devices to intercept cable and satellite feeds, redistributing them illicitly. Piracy[5] extends beyond simple password sharing; sophisticated users employ advanced coding skills or screen-recording programs to extract online streams from official sources like ESPN+. The streams, once stolen and redistributed, often undergo further dissemination, frequently in an automated manner, creating a complex network of unauthorized activity. Free websites and pirate subscription services are increasingly interconnected, amplifying the scope of illicit redistribution.
Conservative estimates indicate that this year alone, losses from streaming leaks, particularly in sports content, will surpass $25 billion. Intellectual Property Rights (IPR) infringements[6], especially through bypassing geo-blocked content, remain rampant, posing significant challenges to content owners and distributors.
Conventional business models in sports and premium television inadvertently facilitate content leakage, especially during live sports broadcasts. Current security measures, such as fingerprinting or watermarking technologies, are ineffective. It could be argued that within the context of news media distribution, video streaming represents a vital aspect of critical infrastructure, making it susceptible to malicious software attacks. Malware, “usually delivered through an infected email attachment or link, the nimble and ever mutating code was able to slip past most virus detection software".[7]
The concept of "appointment viewing"[8] exposes live sports content to significant risks of intellectual property (IP) rights violations. Sports leagues and media conglomerates stand to lose substantial audiences within minutes. This is due to the brief time it takes for viewers to search for alternative, unauthorized, free, or very cheap streams to watch live games, matches, or fights. Preventing such leaks is time-critical, as audience interest rapidly declines once a live event concludes. Content is particularly vulnerable to unauthorized live redistribution while a sporting event is in progress.
Is the centralization of video distribution the problem here? In traditional a video streaming platform, where one of the users pays for using the platform nothing stops that person to redistribute that televised live sport event.
With the help of blockchain, the issue of ownership can be addressed at a protocol level. Blockchain helps the creators and the audience encrypt their videos and store those videos permanently using the IPFS swarm[9]. Blockchain broadcasts the live sporting event in an autonomous manner with the help of various relay nodes and IPFS, thereby maintaining transparency and integrity of ownership in a decentralized way. It echoes overall US Government strategy. The United States acknowledges the potential inherent in the modernization of its cryptographic technologies, which shall now encompass blockchain technology and its capacity to augment security and transparency. As President of United States earlier defined, “digital connectivity should be a tool that uplifts and empowers people everywhere, not one used for repression and coercion.”[10]
Furthermore, according to National Cybersecurity Strategy, “new and updated cybersecurity regulations must be calibrated to meet the needs of national security and public safety, in addition to the security and safety of individuals, regulated entities, and their employees, customers, operations, and data.”[11]
Implementing blockchain technology will inevitably help sport broadcasting giants to grow subscription numbers. Once streaming sporting event is “live”, the blocks, which are stored on a multitude of servers throughout the world, cannot be changed. As a result, sport Leagues and producers of the live broadcasts will have total control over their work. Blockchain-based television streaming systems is a new generation of digital infrastructure[12], that offer transparency through decentralization, allowing participating parties to verify data and transactions, avoid harmful cyber incidents[13]. It is example of “sector-specific engagement with industry to construct consistent, predictable regulatory frameworks for cybersecurity that focus on achieving security outcomes and enabling continuity of operations and functions, while promoting collaboration and innovation”[14]. Put simply, it is a matter of national interest.
The world of live sports video streaming, Major Professional Sport Leagues and OTT giants face a pivotal decision: relinquish control to decentralized networks to secure their profits.
At the heart of this transformation lies the architecture of video streaming—a distributed network governed by blockchain technology.
[1] While the issues addressed in this document may pertain to various forms of video and audio content production, including scripted, edited, and unscripted material, as well as movies, TV shows, and music, the scope of this document is expressly limited to live sporting events.
[2] Who Has the Streaming Rights:
Max– NBA, MLB, NHL, March Madness, NASCAR
Paramount+– NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, NWSL
ESPN+ – NFL, MLB, NHL, UFC, College Football, F1, Bundesliga, PGA Tour, La Liga
Peaco*ck– NFL, MLB, WWE, Olympics, Premier League, NASCAR, French Open, College Football and Basketball, PGA Tour
Prime Video– NFL, Overtime Elite, NASCAR
Apple TV+– MLB, MLS
[3] Allan Nicholson, Harmonic, SVOD vs TVOD vs AVOD vs HVOD: Video Monetization in VOD Explained, (Feb. 13, 2024), available at https://www.harmonicinc.com/insights/blog/svod-vs-tvod-vs-avod-whats-the-best-content-delivery-system/.
[4] John Ourand, “Does media rights bubble have a leak?”, Sport Business Journal (May 2, 2016), “ESPN, for example. It is paying the NFL an average of $1.9 billion per year. It pays the NBA an average of $1.4 billion per year. And it pays MLB an average of $700 million per year. That doesn’t include all the money it spends on college sports, tennis, and MLS. Similarly, Fox pays the NFL $1.1 billion per year, MLB $525 million per year and NASCAR $380 million annually.”
[5] “Digital piracy refers to the illegal copying or distribution of copyrighted material via the Internet. It negatively affects the creative industries, including film, TV, publishing, music and gaming. Online piracy has an economic impact, as it affects government revenue streams and puts you – the consumer – at risk of financial loss. It also opens up security risks to consumers such as ID theft or exposing children to inappropriate content. Pirate operator sites offer access to audiovisual content that has been stolen from a legitimate TV operator. This can be accessed via illicit devices or apps. Legal devices such as smart TVs, smartphones, and tablets may also carry illicit apps.”
Interpol, "Digital Piracy," Interpol, Available at: https://www.interpol.int/en/Crimes/Illicit-goods/Shop-safely/Digital-piracy.
[6] Intellectual property infringement Definition: Anintellectual property(IP)infringementis the infringement or violation of anintellectual property right. There are several types of intellectual property rights, such as copyrights, patents, trademarks, industrial designs, andtrade secrets.
[7] FBI, Partners Disarm Emotet Malware, Department of Justice (February 1, 2021),
available at: https://www.fbi.gov/news/stories/emotet-malware-disrupted-020121.
[8] Television programming that individuals prioritize to watch during its original broadcast time due to a strong desire to witness events within the specified timeframe. This term commonly applies to sporting events or news programs in most cases. Once the outcome of the game or fight becomes known, the desire to watch diminishes significantly or ceases altogether.
[9] Sixiao Xu, "Dissecting IPFS and Swarm" (2022), available at https://www.epfl.ch/labs/dedis/wp-content/uploads/2023/01/report_2022-3-SixiaoXu-DissectingIPFSandSwarm.pdf.
[10] National Cybersecurity Strategy (March 2023), p. 1, available at:
https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf.
[11] National Cybersecurity Strategy (March 2023), p. 2, available at:
https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-
Strategy-2023.pdf.
[12] “As we build a new generation of digital infrastructure, from next-generation telecommunications and IoT to distributed energy resources and prepare for revolutionary changes in our technology landscape brought by artificial intelligence and quantum computing, the need to address this investment gap has grown more urgent.”
National Cybersecurity Strategy (March 2023), p. 23, available at:
https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf.
[13] “Cyber incident. An event occurring on or conducted through a computer network that actually or imminently jeopardizes the integrity, confidentiality, or availability of computers, information or communications systems or networks, physical or virtual infrastructure controlled by computers or information systems, or information resident thereon. For purposes of this directive, a cyber incident may include a vulnerability in an information system, system security procedures, internal controls, or implementation that could be exploited by a threat source”.
Presidential Policy Directive 41, United States Cyber Incident Coordination (July 26, 2016), available at:https://obamawhitehouse.ar chives.gov/the-pressoffice/2016/07/26/presidential-policy-directive-united-states-cyber-incident.
[14] National Cybersecurity Strategy (March 2023), p. 7, available at:
https://www.whitehouse.gov/wp-content/uploads/2023/03/National-Cybersecurity-Strategy-2023.pdf.
Misha Solodovnikov. An accomplished professional in the fields of Intellectual Property law and media production, he successfully completed his Master of Studies in Law in Intellectual Property Law from The George Washington University Law School in December 2023. During his tenure at GW, he concentrated his studies on the convergence of cutting-edge fields, such as Artificial Intelligence Law and Regulation, Blockchain Law and Technology, Cybersecurity Law, and Space Law, with a particular emphasis on their influence within the commercial space industry. His coursework in AI involved the development of legal frameworks and a meticulous examination of the legal intricacies surrounding AI advancement. He also cultivated expertise in Blockchain Technology and delved deeply into the legal challenges inherent in the commercial space sector through his exploration of Space Law.
He serves as Co-Chair of the Emerging Technologies Committee (ETC) of American Intellectual Property Law Association (AIPLA). Professionally, he founded Portable.TV in June 2019, a unique OTT streaming service, and served as its Content and Creative Director until December 2022. Under his leadership, streaming platform achieved significant milestones, including strategic partnerships with the NHL and KHL, and was recognized as a “Technical Innovation of the Year” at Promax North America 2021.
