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Ad Revenue estimates are lower than sports rights fees
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AllTideUp Offline
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Post: #1
Ad Revenue estimates are lower than sports rights fees
From Awful Announcing...

Sports rights have now soared about estimated ad revenue

Fascinating stuff.

The NBA and MLB are especially egregious violators and this really calls into question whether or not rights fees will continue to grow. The sports bubble certainly looks real from this angle.

Also take into account the statement at the end of the article about the aging population of sports fans...
09-22-2017 04:34 AM
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murrdcu Offline
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Post: #2
RE: Ad Revenue estimates are lower than sports rights fees
(09-22-2017 04:34 AM)AllTideUp Wrote:  From Awful Announcing...

Sports rights have now soared about estimated ad revenue

Fascinating stuff.

The NBA and MLB are especially egregious violators and this really calls into question whether or not rights fees will continue to grow. The sports bubble certainly looks real from this angle.

Also take into account the statement at the end of the article about the aging population of sports fans...

The article, after showing the charts for the rights fees paid vs ad revenue comparison, talked about how the subscription fee also had to factor into the rights fees being paid to these sports leagues. There is still a greater need to justify distribution demand vs settling for a fair or market value rights fee agreed to.

I would watch the NYC market negotiations on cable fees to see what the future looks like; this is the reason why College Football Game Day's show is going up there this weekend to show that the tristate region is not just huge NFL fans.
09-22-2017 11:49 AM
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AllTideUp Offline
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Post: #3
RE: Ad Revenue estimates are lower than sports rights fees
(09-22-2017 11:49 AM)murrdcu Wrote:  
(09-22-2017 04:34 AM)AllTideUp Wrote:  From Awful Announcing...

Sports rights have now soared about estimated ad revenue

Fascinating stuff.

The NBA and MLB are especially egregious violators and this really calls into question whether or not rights fees will continue to grow. The sports bubble certainly looks real from this angle.

Also take into account the statement at the end of the article about the aging population of sports fans...

The article, after showing the charts for the rights fees paid vs ad revenue comparison, talked about how the subscription fee also had to factor into the rights fees being paid to these sports leagues. There is still a greater need to justify distribution demand vs settling for a fair or market value rights fee agreed to.

I would watch the NYC market negotiations on cable fees to see what the future looks like; this is the reason why College Football Game Day's show is going up there this weekend to show that the tristate region is not just huge NFL fans.

Those cable subs might not be as reliable over time.

Eventually, the networks will switch to primarily streaming and the cable companies will help facilitate that I'm sure. When it happens, there's still a question over how much money these subs will generate.

What I took from the article is that we've pretty much reached the peak for rights fees. Right now, the economics support the money going out, but that may not be the case in the long run.
09-22-2017 12:34 PM
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JRsec Offline
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Post: #4
RE: Ad Revenue estimates are lower than sports rights fees
(09-22-2017 12:34 PM)AllTideUp Wrote:  
(09-22-2017 11:49 AM)murrdcu Wrote:  
(09-22-2017 04:34 AM)AllTideUp Wrote:  From Awful Announcing...

Sports rights have now soared about estimated ad revenue

Fascinating stuff.

The NBA and MLB are especially egregious violators and this really calls into question whether or not rights fees will continue to grow. The sports bubble certainly looks real from this angle.

Also take into account the statement at the end of the article about the aging population of sports fans...

The article, after showing the charts for the rights fees paid vs ad revenue comparison, talked about how the subscription fee also had to factor into the rights fees being paid to these sports leagues. There is still a greater need to justify distribution demand vs settling for a fair or market value rights fee agreed to.

I would watch the NYC market negotiations on cable fees to see what the future looks like; this is the reason why College Football Game Day's show is going up there this weekend to show that the tristate region is not just huge NFL fans.

Those cable subs might not be as reliable over time.

Eventually, the networks will switch to primarily streaming and the cable companies will help facilitate that I'm sure. When it happens, there's still a question over how much money these subs will generate.

What I took from the article is that we've pretty much reached the peak for rights fees. Right now, the economics support the money going out, but that may not be the case in the long run.

While I agree that rights fees are nearing peak, content value is one way to push beyond it safely. So with the exception of gaining control over Texas's main state schools and the Oklahoma's which have a great deal of influence in DFW, I don't see a market approach to our further realignment outside of content. At least with Oklahoma State you get a school that is just one step below a top notch contender, and a middler in Texas Tech. So from a content perspective they aren't bad, and in their own region are a draw.

But getting big increases for new contracts is probably at an end.
09-22-2017 12:40 PM
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