Economics of Sports/TV Deals

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Economics of Sports/TV Deals

Post by Ted » Thu Nov 16, 2017 9:00 pm

Does anyone know much about this? I've been kind of curious. It feels like every league/franchise is flush with new TV money these last five years. Where is it coming from? Dish and Cable have been getting their ass handed to them by alternatives like Hulu and Netflix for a decade now. Sure, the cable monopolies still have a ton of market share, but it's continually dwindling. Are they paying more to leagues and franchises to guarantee their product (i.e. prevent the team from going direct to consumer) or paying more because they know it's one of the few draws they still have? Are they charging bars more? Basically, the question is, will this money dry up? In ten years will it all go backwards? I haven't paid to watch a sporting event at home in a decade (haven't had cable/dish for that long) and as long it is going to cost me upwards of $100 a month, I'll continue to not do so. If these idiots that were losing their market share in huge bites would get their shit together and let me buy ESPN and my local sports affiliates for a reasonable price (say $10 a month or a package of five to ten channels I actually would watch for $20-25), I'd be glad to give them money. This is increasingly what I hear from people I talk to. About half the people I know under the age of 40 that don't have kids don't have TV. Anyway, just curious if anyone knows more about where the money is coming from.
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Re: Economics of Sports/TV Deals

Post by Lane » Thu Nov 16, 2017 9:08 pm

I think it's widely assumed that we're in a "bubble" and things are surely to change before long. TimeWarner (now Spectrum) is surely losing money on the TV deal that they gave the Dodgers. ($200 million/year over 20ish years) because DirecTV (now AT&T) refuses to pay them to carry the channel. So hardly anyone in LA is able to watch the Dodgers.

Anyway, until sports are widely available through cable alternatives, there will still be money in it. Sports are pretty much the only things that people watch live anymore, so ad money is still there.
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