I'm pleased to present the 350th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we return to the cost of sports and specifically why sports TV will be under pressure in 2017. Colin noted new SNL Kagan data this week that sports programming now costs pay-TV operators $18.37/month, which is 40% of their total programming budget. Colin also noticed that DirecTV is planning to increase its rates by $2-$6/month next month, which it blamed on the rising costs of programming.
These types of increases will no doubt contribute to a rising level of cord-cutting and cord-nevering, especially for entertainment-centric viewers who now have more choices of great TV shows to watch than ever and therefore have less reason to pay for expensive multichannel bundles. We’ve seen some of this effect already in the soft NFL ratings this season. Then there’s the question of where skinny bundles will fit in with sports; they’ll almost certainly have to keep sports to a minimum to maintain low rates.
As we discuss, all of this threatens the unique value of sports as a firewall for pay-TV, live viewing and advertising - the reasons why sports rights have ballooned in the first place. 2017 is going to be a very important in redefining sports’ actual value in the video ecosystem.
Listen in to learn more!
Click here to listen to the podcast (22 minutes, 45 seconds)