Quote:
Originally Posted by nfotiu
That will be a huge problem for sports leagues if that is the route it goes.
A typical US hockey regional market will have 4 million households paying $3/month for the channel that shows local hockey games. That is $144 million/year to split between the RSN and the team. That's why local tv rights are in the 10s of millions in US cities where hardly anyone watches.
That same market probably averages 50,000 viewers per game. If (and that's a huge if) all those viewers were willing to pay $200 per year, then that's only $10 million per year. The even bigger problem comes when only half those viewers will pay that price and that number drops to $5 million in revenue minus whoever they are paying to distribute and produce the games.
|
I think you are under-selling the number of subscriptions here.
There may be 50,000 viewers per game (or whatever the number is in each particular market), but it isn't the same 50,000 people each game. There are lots of fans that only tune in periodically.
If there is no cable (saving them money) and the only way to get sports is to subscribe, a LOT more people will subscribe I would guess.