New apps threaten TV networks’ golden egg: Live sports

Since the advent of the VCR and then YouTube, the media industry’s No. 1 enemy has been piracy. But while Hollywood and the TV networks have fought one technology after another, one type of entertainment has been safe from illegal broadcasts: live sports. That’s because fans hated waiting for illicit recordings to be posted online. Sporting events offered the rare assurance that millions of viewers would still gather at a scheduled time in front of their televisions to watch games unfold live. Now, live-streaming apps such as Periscope and Meerkat threaten TV’s golden egg. Just hold a smartphone up to a television to record and stream what’s airing, and suddenly piracy is easier than ever. That stunning recognition arrived when droves of boxing fans skipped the $100 pay-per-view fee and watched the much-anticipated match between Floyd Mayweather Jr. and Manny Pacquiao for free. Dozens of live streams of the fight were available through Periscope, and even though the app shut down 30 illegal streams, users gloated about their ability to watch. Sports leagues have so far tolerated some fan use of these apps, and media organizations say the services are not yet hurting their bottom lines. But the implications of the new technology are clear.