Quote:
Originally Posted by Ark2
I'm not pretending anything. This is the sort of thing that you do your homework on, and, if it doesn't look like it will work, you scrap it (or at least table until potential problems can be better addressed).
Simply saying "subscription revenues gone" means absolutely nothing as you don't know anything about these revenues. What kind of profits do they produce? How likely are they to be reduced should free online streaming be provided? How much could such a potential loss be offset by free streaming? The point is, neither of us know the answers to these questions, so unequivocally calling this a "massive negative" makes absolutely no sense at this point.
You also say that local TV deals would be undermined. How? Local broadcasts aren't driven by CI subscriptions anyway. They are driven by advertising revenue directed at local viewer ship that doesn't need CI to watch these games in the first place. These ads wouldn't be circumvented by online streaming. People that watch online would still have to watch them and the added bonus would be that these ads would reach viewers that would not otherwise see them. If Fox Pittsburgh broadcasts the game, then just like in the case of CI, the NHL would broadcast this feed online and everyone in North America would be able to get this game for free, just as if they lived in Pittsburgh. How would this constitute a "massive negative"?
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You don't have to do much homework to figure out that a free option all but kills a pay option. The vast majority of people don't pay for things when they can get the exact same product for free, that's called common sense.
As for the local deals, why would a local provider pony up to broadcast games when they know they won't have exclusive rights to free broadcasts in the region? It completely undermines the huge monopoly advantage they have in the marketplace. FSN Arizona isn't going to want to compete with every other game on a given night, they want to be the only option for people who haven't shelled out for CI/GC. You've taken away a major comeptitive advantage for the local broadcasters, you don't see this as a massive negative when it comes to negotiating fees? Adding additional viewers in other markets doesn't help at all either. Watch a game on any local station and tell me how many ads are national in nature. The focus is largely on local advertising. An ad for Belle tire doesn't become more valuable when seen by people outside of Michigan, Belle Tire doesn't care if people in Arizona see their ad, they don't exist there.