Posted on 09/17/2017 12:43:43 PM PDT by Excuse_My_Bellicosity
In a fractured media environment where award-winning scripted dramas compete for the public's attention along with goofy cat videos, one of the few things that multibillion dollar media and entertainment conglomerates could count on to attract millions of viewers -- and generate the ad revenue that keeps them in business -- was the National Football League.
These days, however, the most popular U.S. professional sport isn't such a sure bet. According to Pivotal Research analyst Brian Wieser, viewership for the NFL was down 14 percent on a year-over-year basis during the first week of the 2017-18 season. That's the lowest level of same-week viewing since 2009.
As a result, Walt Disney (DIS), parent of ESPN; CBS (CBS), parent of CBS MoneyWatch; Fox (FOXA), parent 21st Century Fox and Comcast (CMCSA), whose properties include NBC, are in a bind. They've counted on the NFL to buttress their business as audiences for cable and broadcast networks have dwindled in recent years. It has been an expensive strategy.
Fox, CBS and Comcast signed a $27 billion deal with the NFL for the right to broadcast games through 2022. ESPN reportedly pays $1.9 billion per year for the rights to "Monday Night Football," a 73 percent increase over the previous contract. NBC and CBS signed a $900 million deal in 2016 for the rights to broadcast Thursday night games.
"The bigger question is why and how have sports defied gravity for so long," Pivotal's Weiser said, adding that broadcasting the NFL had "high fixed costs." He noted: "At the end of the day, people are using their TV sets less than they used to."
Theories abound attempting to explain the ratings drop. Among them: the public's attention being diverted by Hurricanes Harvey and Irma. Before that, the nastiest presidential campaign in recent memory fixated viewers away from the gridiron.
Others have pointed to the controversy around former San Francisco 49er quarterback Colin Kaepernick as a fan turn-off. Injuries to stars such as wide receiver Odell Beckham Jr. of the New York Giants haven't helped, either, nor do the retirements of fan favorites such as Peyton Manning.
Some sports fans have argued that the quality of the league's product has slipped. Some evidence justifies these concerns. According to 538.com, only three games in the season's Week One were decided by 7 or fewer points, the lowest number for an opening week since 1973. Teams combined for 40.4 points per game, the sixth-lowest mark since 2012. Many of the games weren't even close, with the average margin of victory at 3-to-1.
To be sure, the viewership picture isn't entirely bleak. The opening contest on NBC's "Sunday Night Football" featured two of the league's most popular teams, the Dallas Cowboys and the New York Giants. It posted a 5 percent viewership gain over the previous year.
CBS Chief Executive Les Moonves, for one, isn't worried about the drop-off in NFL TV audiences, which he attributed to the hurricanes. He told CNBC recently, "I think the NFL is still the best property on television."
Moonves' optimism is shared by Amazon (AMZN), which bought the rights to stream 10 NFL games this season. Once the league's broadcast deal expires, Weiser expects the e-commerce giant to bid along with other tech stalwarts such as Apple (AAPL) and Google parent Alphabet (GOOG). That might make an expensive business even more pricey for the media companies.
The coach told him, "I'm only going to show you this once."
I know this will show my ignorance, but who loses, what is the financial impact of all of this?
The NFL is making money because they are selling the broadcast rights to various networks. Is the NFL guaranteed “x” number of dollars for selling the broadcast rights, or is the total they receive dependent on the ratings for the broadcasts, and then they get paid after the fact?
When the networks sell commercial time on the games, are they paid “x” amount, or are the amounts they get paid by sponsors dependent on the ratings??
I can see that, if ratings are down by , say 10%, that there would be 10% less revenue coming in. But who is taking it in the shorts; who in the revenue line has to take the hit from less money coming in??? The NFL, the broadcast networks, the sponsors who pay for commercial time? Who is getting the raw end of the deal?
The networks will take it in the shorts because the the prices for ad time will drop. The NFL still gets their money either way.
But when the next time the network contracts come up, that’s when the NFL will start feeling the pain.
How to use Sling to slice the $’s from ESPN and Disney
We had both the Sling Orange and Blue basic. One of our relatives, who hates ESPN/NFL gave us a great heads up.
Sling Blue doesn't carry any ESPN or Disney channels.
We don't watch ESPN or Disney, however, they were getting money from us by subscribing to Sling Orange each month when we paid our Sling bill.
I got that info from a relative, Friday. A few minutes later I had cancelled Sling Orange. So, now ESPN and Disney get zero money from my Sling Blue monthly subscription payment.
What Is Sling Blue?:(from their site)
Sling Blue costs $25 per month and gives you access to 43 live channels. However,
Blue does not include every Orange channel by default; there’s no Disney and no ESPN, for starters.
so then, sounds like the NFL is good financially until 2022, when these contracts come up for renewal.
If we see continual erosion of the ratings between now and 2022, and keeping in mind there are reasons aside from Capernick for the ratings slide, the NFL accountants could really be sharpening their pencils, figuratively speaking, as they adjust to that reality.
Heck, Goddell may have to take a pay cut. I understand he’s paid in the tens of millions to oversee the NFL.
Thought the Eagles/Chiefs game was pretty good myself.
Kaepernick was the straw the broke the camel's back. The NFL gave the middle finger to their bedrock fans with crap like Pink Month, all Hispanic all the time for Sept., etc.
The Chinese tree catcher still gets a laugh!
Anyway, NFL & ESPN have gone nucking futs. The leadership looks at packed stadiums and sees ants, not individuals making decisions. They see themselves as elites dictating taste to the masses.
Well, this isn’t North Korea. Attendance at public events is not mandatory & people will vote with their wallets.
Here are the scores for the early Sunday games now over
Ravens 24 Browns 10
Panthers 9 Bills 3
Cardinals 16 Colts 13
Titans 37 Jaguars 16
Chiefs 27 Eagles 20
Patriots 36 Saints 20
Steelers 26 Vikings 9
Buccaneers 29 Bears 7
And here’s a partial score, New York 7.
RIP George.
You can act, do, say, kiss, salute whatever your heart desires. But I do not have to care or let alone PAY to watch you do it. If the owners think otherwise I am in full support of them switching to a bigger better more profitable audience.
“NOBODY WANTS TO WATCH SPOILED ROTTEN MILLIONAIRES PROTEST HOW UNFAIR THEIR COUNTRY IS.”
Hammer meet nail. Well said. You’ve captured the essence of why people are disgusted with the NFL.
Who cares? The owners could nip this anti-Americanism in the bud.,..if they cared to do so. To He** with them.
Exactly. I think the American public had the same reaction when the baseball players went on strike some years ago. You guys are playing a game.
Also, I would like to know what kind of salaries any of these guys could pull down in any other job --- if they could get any other job. They have become millionaires by playing a game. Yes, they play at a high level of expertise; but, it is still a game. And they complain about the unfairness of the country that allows them to become millionaires by playing a game???
Watching the NFL was something I did on Sunday afternoons. No more. I'm done.
And don't forget the MUTE button. Oh, how I love the MUTE button.
Fellow Seattle area person here. My moment was when Pete Carroll talked about how he admired Michael Bennett for his convictions. And, that he supported what he (Bennett) was doing. Not watching this year, probably won't be watching ever again. Once a habit is broken, it is hard to get back into it.
For what offense was he convicted?
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