Something has to give with pay-TV and sports


Pay-TV operators (DISH, DTV, CHTR, CVC, TWC) will have to spend about $18.32 a month per subscriber within wo years to gain broad rights to sports content, according to estimates from SNL Kagan. That figure makes it difficult for the group to offer smaller bundles to bring back cord-cutters and lure cord-nevers.

The major sports broadcasters (DIS, TWX, FOXA, CMCSA, CBS) only earned about $1.17 a month in 1995, despite lacking any competition from streaming or online services.

Though the AT&T-DirecTV and Comcast-Time Warner Cable mergers could add leverage to the pay-TV side, new sports channels Fox Sport 1 and NBC Sports Network aim to achieve the must-have clout and high carriage fees earned by ESPN.

Passing on costs might not be an option:  Average revenue per user at pay-TV operators has hit a tipping point with consumers, with most analysts seeing the push-back continuing.

"Something has to give," sums up media analyst Craig Moffett.

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Comments (8)
  • labas112
    , contributor
    Comments (483) | Send Message
     
    Count me as one of them. I am about to test out the streaming services with Hulu and Netflix. Sports is really the only thing that keeps me from making the complete switch.
    2 Jul 2014, 12:57 PM Reply Like
  • David J. Waldron
    , contributor
    Comments (67) | Send Message
     
    As a consumer, I agree 'something has to give.' Other than the four networks, PBS, and some basic cable channels (CNBC, CNN, etc.) my wife and I watch primarily just two "bundled" channels: ID Discovery and MLB Network, respectively. But in order to get those two specific channels, our cable provider Cox Communications (privately held) requires us to pay for upwards of 500 channels.

     

    As an investor, it is a matter of time before a technologically advanced internet TV takes over (Web 3.0) and these content providers take it on chin, or better yet, add Netflix, et al to their set-top boxes (Roku inside the cable box kind of thing).

     

    Also, the M&A activity is intriguing. Isn't that usually a precursor to an industry reinventing itself, or worse desperately hanging on to what used to work, through consolidation?
    2 Jul 2014, 01:05 PM Reply Like
  • King Rat
    , contributor
    Comments (1558) | Send Message
     
    "Something has to give" indeed. I cancelled TV service when I found out ESPN charged $5/month to the provider and I paid on top of that.

     

    No more suffering those endless commercials for beer, big trucks, auto insurance, ED pills, and disaster movies (the metaphor for the lives of sports fans).
    2 Jul 2014, 01:25 PM Reply Like
  • paulformal
    , contributor
    Comments (6) | Send Message
     
    The Commercials are ruining the enjoyment of TV. Most tape what they want to watch and speed through the advertisements.
    I wish DTV would pay a dividend to its shareholders. T paying an additional $10.00 per share is not such an upside considering who knows when/if the merger will take place?
    http://www.maxformal.com "America's #1 Name for Linens" since 1953
    2 Jul 2014, 01:39 PM Reply Like
  • serndipity
    , contributor
    Comments (188) | Send Message
     
    I cut the plug on cable TV altogether, years ago.

     

    Now get free HD TV via an indoor antenna. Receive more than 40 digital TV channels which includes all the networks, plus several 24x7 movie channels, 24x7 kids programming, old time retro programming etc.. Also did A/B test and the antenna solution actually produced a superior picture. Cable uses to much compression, required to fit those 100 - 200 channels on a wire.

     

    For lots of free movies, special interest programming etc., use a $35 Google Chromecast dongle.

     

    Yesterday, streamed the USA-Belgium match live, for free, via Ustream.
    2 Jul 2014, 01:44 PM Reply Like
  • vr39235
    , contributor
    Comments (4) | Send Message
     
    I'm with everyone here on this message board! I'm ready to cut the cord myself. So sick of DTV nickel & diming me for everything...pay $5/month for each box, $10/DVR, and most sick of paying for 100s of channels I don't ever watch. The sports is the only thing that keeps me from cutting the cord right now, but I have to go to therapy to finally separate myself from being addicted to sports!
    2 Jul 2014, 05:56 PM Reply Like
  • skipmac
    , contributor
    Comments (55) | Send Message
     
    An even worse part of cable TV is the channel selection you are forced to pay which are included in the selection. Unfortunately, I only speak English, not Spanish, French, Italian, or Arabic.
    3 Jul 2014, 09:35 AM Reply Like
  • rubenel
    , contributor
    Comment (1) | Send Message
     
    My friend on these days ,becomombi- lingual have many benefits for people interested in wha's reallyngoing on the diferent cultures .i am interstedbin taking clases in mandarin Chinese). It' your choice .thevworld is expanding .......
    7 Jul 2014, 02:58 PM Reply Like
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