Bubble bubble, toil and trouble (Business of hockey/sports article)

[DJones]

Just a weird transition period.

Lots of companies haven't figured out how to get away from the cable trap.

The next tv rights deal will be significantly less but it will only apply to TV/cable rights. Paying $8-$10 a month to watch any one team or $20 for every team would be the next logical solution.

[DJones]

Originally Posted by Enoch Root

I think live streaming is still available (and free) for 3 main reasons:

1) they still generate their revenue from the big cable deals
2) there hasn't enough of it to be a major concern - yet. Obviously that is about to change.
3) they haven't exactly figured out how they are going to charge for it

However, once the scales tip from cable deals to direct viewership, you can bet their focus will tighten on this and you won't be streaming it for free any longer (well, at least not legally).

The NHL - like most businesses - is not in the business of giving their product away for nothing.

Good luck with that haha. UFC and Hollywood have wasted so much time trying to stop pirating. They just can't win.

Charge a fair price so it is convenient for people to not pirate. Being able to select the camera view or even to change broadcasters on the fly would be enough reason for me to pay. Imagine being able to pick what broadcasters you could use. I guarantee some fan doing it for free would be fantastic.

[Enoch Root]

Originally Posted by DJones

Good luck with that haha. UFC and Hollywood have wasted so much time trying to stop pirating. They just can't win.

Charge a fair price so it is convenient for people to not pirate. Being able to select the camera view or even to change broadcasters on the fly would be enough reason for me to pay. Imagine being able to pick what broadcasters you could use. I guarantee some fan doing it for free would be fantastic.

When I was in my 20s, people tried to steal cable signals and movie channel signals. This is not new. The suppliers adjust. The technologies evolve.

Ask yourself this: do you think that professional sports leagues, that generate billions in revenues from tv deals, are just going to suddenly supply their content for nothing?

[DJones]

Originally Posted by Enoch Root

When I was in my 20s, people tried to steal cable signals and movie channel signals. This is not new. The suppliers adjust. The technologies evolve.

Ask yourself this: do you think that professional sports leagues, that generate billions in revenues from tv deals, are just going to suddenly supply their content for nothing?

No because most people are too lazy to figure out how to do it illegally.

Most people will pay $10 a month just so they can press a single button and it will be on. The 10% or whatever that refuse to pay will always be able to find it illegally. I could find a HD stream of the Revenant in 30 seconds if I was so inclined but I'll go to the theatre because I like the atmosphere. NHL has to provide convenience or additional features that people like more than the money it costs them.

[Hockey Fan #751]

Originally Posted by Textcritic

This supposedly knowledgable hockey writer from THN seems to think that escrow is a black hole of disappearing cash which the players invariably lose every year, and nothing could be further from the truth as it has played out in the salary cap era. No, John Scott is not earning -16% of his salary because of escrow. Based on projections of league revenues for this year, he will receive every cent of that figure once the season ends.

Not to mention, now that he's in the AHL he doesn't need to continue paying into escrow anymore.

[Magnum PEI]

Originally Posted by DJones

No because most people are too lazy to figure out how to do it illegally.

Most people will pay $10 a month just so they can press a single button and it will be on. The 10% or whatever that refuse to pay will always be able to find it illegally. I could find a HD stream of the Revenant in 30 seconds if I was so inclined but I'll go to the theatre because I like the atmosphere. NHL has to provide convenience or additional features that people like more than the money it costs them.

Right now the streamers offer a better product than GCL. No blackouts, and they actually show pre and post game stuff. Add in the price point and the decison is a complete no-brainer. Sorry NHL/Rogers, I would be happy to pay the $200 for GCL if it was on par with the youtube streams from 'the front page of the Internet'.

[corporatejay]

So basically you guys are saying that sports won't survive because people are willing to steal from their business. Solid argument.

[Flash Walken]

Originally Posted by corporatejay

So basically you guys are saying that sports won't survive because people are willing to steal from their business. Solid argument.

No one is saying that. At all.

Posters are saying, for a variety of factors, the current television deals in place that have driven the massive increase in sports salaries and franchise valuations in the last 20 years are soon going to be disrupted by technology that will replace them.

In a direct-to-consumer funding model, a sports league won't generate the same revenue they currently generate from TV contracts bloated by non-a la carte channel packages without excessive pricing increases in their direct to consumer offerings or expanded access to other markets that will disrupt their current marketing and content licensing agreements.

The current business environment that has allowed the big 4 sports fanchises in north america to thrive is on the verge of changing.