“Traditional Pay-TV Squeezes More Revenue Out of a Declining Asset”, writes Midia Research.
Yes, squeezed more, just barely, and probably because around a couple of percent of advertising spend was relocated this year from online to TV by advertisers unhappy with the quality of targeting online.
But it’s the last gasp. The NFL has seen lower ratings because it’s been less interesting lately (in the opinion of those who would know the difference, of whom I’m not one), but it remains a major national sport in the US, and it is headed to SVOD/OTT with the lower-value prescheduled evening fixtures first. The more interesting, dynamically scheduled games currently on Fox and CBS will surely follow.
The league’s thirst for cash has demanded an ever more increasing subsidy from broadcasters and pay-TV operators even as margins permitting them to pay this subsidy have become static or started declining. As Margaret Thatcher warned early on in an argument against tolerance of inflation, it is easy to end up pricing yourself out of the market.
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