Tuesday, February 09, 2016
The most recent discussions about a sports-rights bubble surfaced three years ago when the Los Angeles Dodgers signed their $8 billion television deal with Time Warner. While those in the industry had been hearing about a bubble for two decades and dismissed its existence, recent developments have provided ammunition for both sides. The Dodgers deal has proved to be a disaster up to this point, but teams like the Arizona Diamondbacks, Philadelphia Phillies, and St. Louis Cardinals have all signed billion-dollar deals of their own to broadcast games on cable locally. While cord-cutting might be “costing” ESPN billions in potential revenue, the company is still as profitable as ever due to higher pricing that make up for fewer subscribers. The concerns around ESPN deal with stagnant growth when it comes to profits, not with the actual profits, which are still enormous.
In discussing the fantastic television ratings for baseball a year ago, I wrote about the current dynamic between MLB and cable, and for the most part, this dynamic remains.
While cord-cutting is occurring across the country, it has not been widespread enough to cause a change of course in the current cable model. The recently discussed merger of Time Warner and Comcast that eventually fell apart would have actually further strengthened the current system. That cable companies also provide internet service, a much more necessary service than cable, only helps them keep subscribers. Change is inevitable, however, and better technology (including services provided by baseball’s own MLBAM) and internet service will eventually cause the current model to fall apart, as those with content will eventually be able to provide that content to their entire audience without the assistance of a cable provider.
Posted: February 09, 2016 at 02:40 PM | 75 comment(s)
Friday, January 01, 2016
Re-sign Mex! Never mind his entertainment value, someone’s needed to throw out runners attempting to score from third base on routine ground balls.
Popular SNY New York Mets analyst Keith Hernandez remains a free agent, but contract negotiations to remain with the Mets-oriented regional sports network are expected to begin shortly, now that the Christmas and New Year’s holidays have passed.
Hernandez, 62, has been a commentator on Mets telecasts on SNY for 10 seasons. He has been joined by play-by-play announcer Gary Cohen and fellow analyst Ron Darling to form one of the most beloved broadcast teams in sports.
Friday, November 27, 2015
Cord cutting leads to 2 year subscriber loss of 7 million, and Disney stock takes a hit.
Posted: November 27, 2015 at 09:36 AM | 5 comment(s)
Friday, November 20, 2015
As part of the quarterly owners meetings in Dallas, MLB commissioner Rob Manfred announced that the league and FOX have reached a 3-year deal to provide games streamed in-market to computers and mobile devices. The deal encompasses 15 regional sports networks. The following teams that have rights deals with FOX Sports RSNs that will be streamed in-market in 2016:
Kansas City Royals
Los Angeles Angels
New York Yankees
San Diego Padres
St. Louis Cardinals
Tampa Bay Rays….
On top of the 15 clubs that will get in-market, the Toronto Blue Jays have had in-market streaming in place already. With the Blue Jays calling all of Canada their home market, the deal was much easier to reach.
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