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Broadcasters worry about 'Zero TV' homes
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darkdragon99 Offline
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Post: #1
Broadcasters worry about 'Zero TV' homes
http://news.yahoo.com/broadcasters-worry...nance.html

Not sure how this effects these continued conference tv mega deals but it can't be good news for them.
04-07-2013 01:11 PM
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NIU007 Offline
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Post: #2
RE: Broadcasters worry about 'Zero TV' homes
It was just a matter of time. Especially with all the crap about rates for 6 months and then they jack up the rates a whole bunch.
04-07-2013 03:52 PM
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Captain Bearcat Offline
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Post: #3
RE: Broadcasters worry about 'Zero TV' homes
My house is a "Zero TV" home. We just can't justify spending $40-120/month on something that makes us lazier. And there's only one broadcast TV station in town (Lafayette, IN), so buying a new antenna just isn't worth it.

We also don't have smartphones, mostly for the same reason. Not worth paying that much when the only benefit is letting coworkers have 24/7 access to me and getting directions once a month.

I would be willing to pay 15/month for full access to UC games online though. We get ESPN3 now for "free" because we use my parents' cable account to access it, but if we had to pay we probably would. 20/month would be too much, but 15 would be worth it.
04-07-2013 04:13 PM
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orangefan Offline
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RE: Broadcasters worry about 'Zero TV' homes
Couple of observations.

First, an unmentioned concern is where the next generation of sports fans will come from. If fans can't afford to go to the games or even watch them on TV, how are they going to develop the loyalty that will give them the justification to pay $100 for the sports filled digital tier?

Second, this is not an immediate concern for most schools and teams, as many of them have very long term deals. The rights holders will be the ones facing the challenge of maintaining revenue streams. I'm guessing that they are up to the challenge even if it means socking the avid sports fan harder than they have in the past.

Finally, ESPN has a strong entree into the zero TV home environment with ESPN3. I'm sure they will continue to experiment with how to maximize revenue from the source.
04-07-2013 04:49 PM
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billings Offline
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RE: Broadcasters worry about 'Zero TV' homes
Big money Sports TV is the next bubble that will burst. give it time
04-07-2013 05:17 PM
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SeaBlue Offline
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RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 05:17 PM)billings Wrote:  Big money Sports TV is the next bubble that will burst. give it time

I kind of hope it does. Those guys are making how many times more than they were 20 years ago?

I don't see yet though the demise -- as many have postulated -- of the conference sports network. As a far cheaper alternative to professional sports, delivering significant revenue to conferences via sports content should survive -- via whatever mechanism is used to deliver and charge for it.
04-07-2013 05:42 PM
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miko33 Offline
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RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 05:17 PM)billings Wrote:  Big money Sports TV is the next bubble that will burst. give it time

I hope it does too. College athletics is a farce in general when you consider the fact that a high percentage of the them have no business being accepted by any university in the first place. It's pretty bad. I'd rather the average 40 times for the skill players go up into the high 4's if it meant that the kids playing on these teams actually deserve to be in the school in the first place.

I also believe that the networks are trying to change the game to make it more like the pro sports. I believe this will hurt college sports long term. Of course, I wrote about this a number of times already, so no need to rehash it here.
04-07-2013 06:01 PM
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RE: Broadcasters worry about 'Zero TV' homes
Just as tech stocks were never going to go down, housing prices were never going to go down, sports TV rights are never going to go down.

Know who is going to be in a world of hurt when it happens?

It won't be Alabama, Texas, UCLA, Michigan, Florida State. They generate so much off ticket sales and donation they will be fine.
It won't be Arkansas State, Troy, Louisiana, Northern Illinois, Toledo. They generate so little off TV they aren't reliant on the money.

The people in trouble will be the lower tier schools in the rich 5 leagues. Look at their budget data, they get much more of their budget (as a percentage) from their conference than the top tier schools. The upper Gang of Five league schools are getting enough TV that it makes a difference in their budget.

Just as the economy has lost much of its middle class the disappearance of fat TV rights will hurt the middle class. God help the lower level SEC, Big XII, Big 10 school with a fat bond issue for their new facilities issued in a few years counting on TV revenue to continue AND increase. If anyone goes under it will be someone in that boat.

Where will the new fans come from? They will be created online and by video games. One theory about the growth of soccer viewing in the US is the kids who love playing EA's FIFA games.

The poor leagues struggling for exposure are made to order for cord cutters, they will be streaming more of their games produced in-house than anyone. YouTube, Netflix, Amazon, Hulu will eventually pick up sports content (YouTube was used to show several US Open Cup soccer games and MLS pre-season games already).

I suspect that in a few years EA Sports will make it's first deal where if you buy their college football game, you will be able to watch live streams of some games as part of the purchase price.
04-07-2013 06:09 PM
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CPslograd Offline
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Post: #9
RE: Broadcasters worry about 'Zero TV' homes
Even if you don't have cable TV, you're going to have to pay for the content one way or the other. Right now, if your subscriber doesn't carry Pac12 network you don't get it on the internet. Eventually, they'll work something out where you can get it on the internet anyway, but you're still going to have to pay for it one way or the other. There will be some surcharge.

As long as the ratings for college sports are what they are comparable to everything else, the content will have lots of value. How it is collected will change along with technology.
04-07-2013 06:17 PM
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Love and Honor Offline
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RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 06:09 PM)arkstfan Wrote:  Just as tech stocks were never going to go down, housing prices were never going to go down, sports TV rights are never going to go down.

Know who is going to be in a world of hurt when it happens?

It won't be Alabama, Texas, UCLA, Michigan, Florida State. They generate so much off ticket sales and donation they will be fine.
It won't be Arkansas State, Troy, Louisiana, Northern Illinois, Toledo. They generate so little off TV they aren't reliant on the money.

The people in trouble will be the lower tier schools in the rich 5 leagues. Look at their budget data, they get much more of their budget (as a percentage) from their conference than the top tier schools. The upper Gang of Five league schools are getting enough TV that it makes a difference in their budget.

Just as the economy has lost much of its middle class the disappearance of fat TV rights will hurt the middle class. God help the lower level SEC, Big XII, Big 10 school with a fat bond issue for their new facilities issued in a few years counting on TV revenue to continue AND increase. If anyone goes under it will be someone in that boat.

Where will the new fans come from? They will be created online and by video games. One theory about the growth of soccer viewing in the US is the kids who love playing EA's FIFA games.

The poor leagues struggling for exposure are made to order for cord cutters, they will be streaming more of their games produced in-house than anyone. YouTube, Netflix, Amazon, Hulu will eventually pick up sports content (YouTube was used to show several US Open Cup soccer games and MLS pre-season games already).

I suspect that in a few years EA Sports will make it's first deal where if you buy their college football game, you will be able to watch live streams of some games as part of the purchase price.

Poor Washington State, Wake Forest, and Iowa State. We're even seeing major programs like Tennessee fall into a world of financial hurt after a downturn in the program followed a big investment.
04-07-2013 06:25 PM
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orangefan Offline
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Post: #11
RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 06:17 PM)CPslograd Wrote:  Even if you don't have cable TV, you're going to have to pay for the content one way or the other. Right now, if your subscriber doesn't carry Pac12 network you don't get it on the internet. Eventually, they'll work something out where you can get it on the internet anyway, but you're still going to have to pay for it one way or the other. There will be some surcharge.

As long as the ratings for college sports are what they are comparable to everything else, the content will have lots of value. How it is collected will change along with technology.

Today, if you subscribe to broadband from Time Warner Cable, Comcast, Verizon, At&T or many other providers, you are paying for ESPN3 in your monthly bill. in other words, ESPN has already started implementing its cable model on broadband as well. Worry not for ESPN.
04-07-2013 06:44 PM
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arkstfan Away
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Post: #12
Broadcasters worry about 'Zero TV' homes
But ESPN isn't including ESPN/ESPN2/U content with that any more.
04-07-2013 06:51 PM
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orangefan Offline
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Post: #13
RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 06:51 PM)arkstfan Wrote:  But ESPN isn't including ESPN/ESPN2/U content with that any more.

But the model is there. The foot is in the door.
04-07-2013 07:27 PM
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Chappy Offline
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RE: Broadcasters worry about 'Zero TV' homes
Cable/Satellite will last forever, just like Blockbuster Video.
04-07-2013 07:42 PM
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orangefan Offline
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RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 07:42 PM)Chappy Wrote:  Cable/Satellite will last forever, just like Blockbuster Video.

The Internet will last forever!
04-07-2013 07:52 PM
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PirateTreasureNC Offline
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RE: Broadcasters worry about 'Zero TV' homes
(04-07-2013 01:11 PM)darkdragon99 Wrote:  http://news.yahoo.com/broadcasters-worry...nance.html

Not sure how this effects these continued conference tv mega deals but it can't be good news for them.

While I would agree that could be a issue the reason Sports is such a hotbed is its LIVE entertainment. If you want to watch a game you want to see it live. Otherwise all you need is a score ticker.

While yes, Netflix and others give you movies and tv for a nominal fee their rights fees are bound to increase... I mean over the last two years NetFlix tripled their fee for their service.

Also, and most cased with Satellite and Cable they are internet providers so you still pay the ____ guy for internet so...

And "most" streaming is dependent on your internet provider and the quality of networking they did in your area because poorly compressed video over the internet looks like crap on your tv.
04-07-2013 07:59 PM
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RE: Broadcasters worry about 'Zero TV' homes
My totally unscientific study of three early 20's males in the workforce (my son and two of his friends).

Two can receive two channels via rabbit ears (ABC, PBS) one can receive can receive six channels via outdoor antenna (ABC, NBC, CBS, Fox, CW, PBS). None have an antenna.

All three own TV's ranging in size from 28 to 50 inches.

All three have internet service w/ wifi router/modems

All three subscribe to Netflix, two online only, one with the one disk a month plan.

All three subscribe to the MLS online service.

Two subscribe to Hulu+

One has cable (my son) with the package that includes Fox Soccer but will downgrade to next lower package as soon as the EPL season ends because the next lower package includes NBCSports which carries MLS and EPL starting next year. The other two no cable.

The non-cable will go to a restaurant (or my son's house) if there is a game they want to see they can't get or will watch a pirate stream.
04-07-2013 08:54 PM
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goodknightfl Offline
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RE: Broadcasters worry about 'Zero TV' homes
As an non cable dude, I get aprox 20 channels over the air. NBC, ABC, and CBS each of those have a secondary channel on. Also have FOX and 3 inde channels. the inde channels each have 1 to 3 extra channels on. Have 2 PBS stations, each of them runs 4 channels in total. there is some overlap on the Pbs channels. I also use netflix at $8 per month which thru my wifes Wii gives us tons of movies and past tv programs to choose from. Games not on networks or inde channels I often can get for free over the net. I refuse to pay extra for any of them. After 30 years of paying for cable or satellite, from $25 to 90 per month, they can shove it. I broke my addiction to them 30 mos ago and have no intention of ever going back.
04-08-2013 06:50 AM
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RE: Broadcasters worry about 'Zero TV' homes
This generation will find a way to watch what it wants. If it is not priced reasonably they will still watch but the rightholders will not be compensated for their viewing. Most watch sports as a communal experience anyways. They would rather watch in a big group then by themselves. That does not require everyone to have individual cable packages
04-08-2013 07:15 AM
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GaSouthern Offline
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RE: Broadcasters worry about 'Zero TV' homes
I don't pay for cable, just $45 a month for Internet that is supposed to be 12mbps but I constantly test above 20mbps, it's plenty to stream hulu and netflix.

I'm at all Georgia Southern home games and hook up my laptop to the computer to watch away games. I watch College Football Final every night via ESPN3
04-08-2013 07:18 AM
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