Friday, December 16, 2011, 8:46 AM ET|Posted by Will RichmondI'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 114th edition of the VideoNuze Report podcast, for Dec. 16, 2011. In today's podcast Colin and I discuss the escalation in sports rights fees, player salaries, sports networks' affiliate fees and pay-TV rates.
Earlier this week I wrote about the massive, $254 million contract baseball slugger Albert Pujols signed with the Angels and how a new 20-year, $3 billion deal with Fox Sports enabled the team to afford the deal. But that's already old news, because since then the NFL signed $28 billion worth of deals with CBS, Fox and NBC (on top of the $15.2 billion renewal with ESPN agreed to in September), and ESPN forked over another $500 million for broader rights with NCAA.
Why does all this matter? Because as I've said repeatedly throughout the year, these deals are largely funded by non sports fans, through their ever-higher monthly pay-TV bills. As Colin and I agree, it's an unsustainable trend that's largely being enabled by consumers' ignorance and inertia about what they're paying for. Coincidentally, just today the NY Times has an article on this topic, the first one I've seen from a mainstream newspaper. The byproduct of escalating pay-TV rates is that they're opening the door for OTT alternatives to thrive. Listen in to learn more!
Click here to listen to the podcast (16 minutes, 11 seconds)
Click here for previous podcasts
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