Quote:
Originally Posted by Enoch Root
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.
|
Maybe by a bit, but it's still a pretty dire situation.
Look at Netflix. Worldwide, it has about 74 million subscribers paying (on average). Last year it made less than 50 million in profit charging (on average) about $100 a year.
The NHL: it's not going to hit 74 million subscribers. If it keeps the current pricing model of Gamecentre (about $200 for a season), and manages comparable overhead to Netflix (unlikely, as Shaw found out with Shomi) then it would have to do at least 37 million subscribers to hit the same 50 million and EVEN THEN, would be lagging far far behind it's current profit from television.
If cable dies and major sports go to a streaming model, you'll see a financial breakdown that will change the landscape of that league completely.
It's likely a huge reason why sports aren't giving in completely to the streaming demand.