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What We All Pay for Sports | POTs and PANs

What We All Pay for Sports | POTs and PANs | Sport Management | Scoop.it

I read an article this week in the LA Times that talked about how sports have jacked up the cost of cable TV everywhere. They cited the fact that the Pac-12 Network alone is going to get over a billion dollars per year in revenue, all gathered from people’s monthly cable rates.

 

There is no question that pro and college sports are driven by television revenues. Everywhere you look the numbers are huge. For example, the NFL gets over $4 billion per year in television rights. That’s $1 billion from ESPN, $1 billion from DirecTV, over $700 million from Fox, and over $600 million each from NBC and CBS. To put that in perspective, there are 100 million cable households in the country and that works out to each one of them paying $3.33 per month to get the NFL.

 

Now I will grant that the NFL is the most popular sport in the country and perhaps most households would not be upset by that number. But it’s only the beginning. There are also lucrative deals with television for college football and basketball and for major league sports like baseball, basketball and hockey. Additionally the cable bundles that people buy force them to buy more sports programming for other sports like golf, tennis, horseracing and even bass fishing.

 

When you add this all up the average consumer in a major metropolitan market that has all of the pro teams is probably paying around $15 per month to get all of this sports programming. That’s $180 per year. In more rural markets where there are not direct channels for baseball and basketball the bill is probably closer to $11 per month or $130 dollars per year. This is a heck of a deal for sports fans. Let’s face it, paying $180 to get a huge array of the sports is a great deal when you figure it would cost that much for two people to go to one pro football game.

 

But the problem is that not everybody is a sports fan. It’s been estimated through polls that maybe 40% of households are serious sports fans. If you do the math and if only the 40% of households that really want sports had to foot the bill that works out to $37.50 per month, or $450 per year, and that monthly number is climbing a few dollars every year. That’s where the rubber hits the road, because polls also say that a majority of those households would not pay that bill on an unbundled basis if they were asked to pay their fair share.

 

What nobody wants to talk about is that the wheels are slowly starting to come off the cable industry. A recent nationwide poll said that 21% of households were thinking of dropping their cable TV subscription. They won’t all do that, of course, but it is a very bad sign for the industry when that many people say they are thinking about it. We can certainly expect millions of households per year to ditch cable. The average cable bill nationwide is now over $90 per month and many households are deciding that they just can’t afford it.

 

Click headline to read more--

 


Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc
Erica Guider's insight:

Sport broadcasting on television is becoming smaller as the prices to watch the sports on television are becoming larger. More households are starting to not watch sports on television because they cant afford the channels, but the cost of having a certain network for a year is equivalent to the price of two tickets to a single sports game. I found it interesting that only 40% of households are considered serious sports fans and those numbers are becoming to dwindle. I selected this article because I thought it was interesting that it wasn’t necessarily about sports itself, but how sports are affecting television broadcasting in a negative way. This information will help me in the sport management industry because knowing that sport broadcasting on television is becoming less popular, I would have to learn about the other options for sport broadcasting and what the fans are into most right now and what will be getting bigger and more popular in the future.  

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Reginald Quince's curator insight, November 1, 2015 10:54 AM

Wow, that is all I can say about this!

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Duncan: Options have changed for watching sports

Duncan: Options have changed for watching sports | Sport Management | Scoop.it
I grew up in the age of basic sports cable channels when ESPN2 was a valuable commodity.
Erica Guider's insight:

There are many different television channels that you can watch sporting events on than there ever has been. Since there are so many channels cable cannot cut all of them and you either get all of them or none of them so it adds a decent amount of money to your monthly bill. Some information that I found interesting and educational was that years ago when you wanted to watch your favorite sports team on television you were lucky if you were to see them 3 or 4 times per year. I selected this article because it talks about how sport television has increased so much than in the past. This information will help me in the sport management industry because since according to this article the sport television market is growing, so sport marketers will know what is best for marketing. 

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Social Media Marketing Lessons From the NHL - Huffington Post

Social Media Marketing Lessons From the NHL - Huffington Post | Sport Management | Scoop.it
Social Media Marketing Lessons From the NHL
Huffington Post
In the last five years, social media has come a long way as a marketing channel. Marketers from all stripes continually test the limits of online engagement and transparency.

Via Thomas Faltin
Erica Guider's insight:

Social media marketing has grown greatly over the past five years especially in sports. It will benefit hockey and help expand its fan base. Twitter and other social media sites have helped widen the audience for the Tampa Bay Lighting and they will continue to grow their social media to attract more fans. Something I found interesting was that social media has changed the way that fans interact with the NHL. I selected this article because there was an example about the Tampa Bay Lightning in it and it stated how it was harder to target the hockey market down South and social media has helped catch the attention of the hockey fans down in Florida. This information will be helpful to me in the sport management industry because it talks about finding the best platform for your market and what kind of content the fans will find engaging on social media. Also, some other helpful information that I learned was the twitter is the most effective social media site for distributing information to the fans. 

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How One Hockey Brand Reimagined Content Marketing - Huffington Post

How One Hockey Brand Reimagined Content Marketing - Huffington Post | Sport Management | Scoop.it
How One Hockey Brand Reimagined Content Marketing
Huffington Post
Content marketing is an increasingly important part of our work at GY&K/Antler. Almost every client now maintains a variety of 'owned' platforms that require ongoing care and feeding.

Via Thomas Faltin
Erica Guider's insight:

GY&K Marketing/GY&K Antler launched Operation Vapor to sell the new Bauer Vapor stick. They created a series of online videos on their youtube channel to show different star NHL players using the sticks. These videos were 'secret surveillance videos' which the players apparently did not know about which helped increase the market for this stick because it was intriguing to the audience. 

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What We All Pay for Sports | POTs and PANs

What We All Pay for Sports | POTs and PANs | Sport Management | Scoop.it

I read an article this week in the LA Times that talked about how sports have jacked up the cost of cable TV everywhere. They cited the fact that the Pac-12 Network alone is going to get over a billion dollars per year in revenue, all gathered from people’s monthly cable rates.

 

There is no question that pro and college sports are driven by television revenues. Everywhere you look the numbers are huge. For example, the NFL gets over $4 billion per year in television rights. That’s $1 billion from ESPN, $1 billion from DirecTV, over $700 million from Fox, and over $600 million each from NBC and CBS. To put that in perspective, there are 100 million cable households in the country and that works out to each one of them paying $3.33 per month to get the NFL.

 

Now I will grant that the NFL is the most popular sport in the country and perhaps most households would not be upset by that number. But it’s only the beginning. There are also lucrative deals with television for college football and basketball and for major league sports like baseball, basketball and hockey. Additionally the cable bundles that people buy force them to buy more sports programming for other sports like golf, tennis, horseracing and even bass fishing.

 

When you add this all up the average consumer in a major metropolitan market that has all of the pro teams is probably paying around $15 per month to get all of this sports programming. That’s $180 per year. In more rural markets where there are not direct channels for baseball and basketball the bill is probably closer to $11 per month or $130 dollars per year. This is a heck of a deal for sports fans. Let’s face it, paying $180 to get a huge array of the sports is a great deal when you figure it would cost that much for two people to go to one pro football game.

 

But the problem is that not everybody is a sports fan. It’s been estimated through polls that maybe 40% of households are serious sports fans. If you do the math and if only the 40% of households that really want sports had to foot the bill that works out to $37.50 per month, or $450 per year, and that monthly number is climbing a few dollars every year. That’s where the rubber hits the road, because polls also say that a majority of those households would not pay that bill on an unbundled basis if they were asked to pay their fair share.

 

What nobody wants to talk about is that the wheels are slowly starting to come off the cable industry. A recent nationwide poll said that 21% of households were thinking of dropping their cable TV subscription. They won’t all do that, of course, but it is a very bad sign for the industry when that many people say they are thinking about it. We can certainly expect millions of households per year to ditch cable. The average cable bill nationwide is now over $90 per month and many households are deciding that they just can’t afford it.

 

Click headline to read more--

 


Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc
Erica Guider's insight:

Sport broadcasting on television is becoming smaller as the prices to watch the sports on television are becoming larger. More households are starting to not watch sports on television because they cant afford the channels, but the cost of having a certain network for a year is equivalent to the price of two tickets to a single sports game. I found it interesting that only 40% of households are considered serious sports fans and those numbers are becoming to dwindle. I selected this article because I thought it was interesting that it wasn’t necessarily about sports itself, but how sports are affecting television broadcasting in a negative way. This information will help me in the sport management industry because knowing that sport broadcasting on television is becoming less popular, I would have to learn about the other options for sport broadcasting and what the fans are into most right now and what will be getting bigger and more popular in the future.  

more...
Reginald Quince's curator insight, November 1, 2015 10:54 AM

Wow, that is all I can say about this!

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3 Reasons Using an NFL or NBA Marketing Mindset for the Stanley Cup Will Cost You

3 Reasons Using an NFL or NBA Marketing Mindset for the Stanley Cup Will Cost You | Sport Management | Scoop.it
If you don’t know much about hockey, it’s time to acquaint yourself with the Wayne Gretzky expression “Skate where the puck’s going.”
Much like hockey, marketing is a fast-moving game of strategy.
Erica Guider's insight:

The target audience being marketed to during the NHL Stanley Cup Finals if different than the NBA, NFL and FIFA Soccer. There are certain ways to market things during the Stanley Cup Finals that will be best fitted for hockey fans rather than any other kind of sports fans that may be watching. 

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COMMENTARY: New $400 Million Hockey Arena and No Street Lights in the Motor City?

COMMENTARY: New $400 Million Hockey Arena and No Street Lights in the Motor City? | Sport Management | Scoop.it
I’m angered that Kevyn Orr, Detroit’s emergency manager, would approve the city’s plans to spend $400 million to build a new hockey arena when the city is broke and thousands of city workers are worried about receiving their hard-earned pensions.

Via up2-21
Erica Guider's insight:

The city of Detroit wants to build a new $400 Million ice rink, but the people of the city do not think it is a good idea. The advocates for the Redwings think that the rink would help turn the city around and start to move the city towards something better. The people of Detroit think that the money could go towards better things for the city. For example keeping the street lamps on and schools. If they want to drive people into moving into the city they need to clean up the city itself first and not just try to get people to come into the city to go to ice hockey games and then leave. 

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