mercredi 31 décembre 2014

Sports TV fees for everybody


You do not like to watch sports on cable TV? Too bad, but you pay anyway. Or  you can cut the cord...

That is what Time Warner Cable, the second American Multiple System Operator (MSO, 11 million subscribers) is telling its subscribers in the beginning of 2015.
Every TWC subscriber will have to pay a monthly $2.75 surcharge, even if they do not subscribe to a sports package. These sports fees are supposed to offset the rising price of sports programming by networks such as ESPN, SportNet LA (which by the way belongs to TWC), etc. DirecTV and Cablevision are going to do the same. Subscribers will not be able to opt out to avoid the surcharge (bundling).
Sports programming represents 20% of programming expenses for cable operators and other distributors (source: SNL Kagan).

Of course this surcharge will probably increase cord cutting and the number of cord-nevers. But obviously, in order to optimize their business, cable operators prefer to have less subscribers who pay a bigger bill: How long can this last? Unfortunately, for American sports fans, the broadband supply of sports is still limited. When will there be a OTT for sports?

5 commentaires:

#helena226 a dit…

La preuve encore, que le sport, même pour ceux qui ne le consomment pas à la télévision américaine, a un coût exorbitant. Les droits de diffusion sont tels qu'il est désormais nécessaire d'augmenter les honoraires... Une réaction négative des consommateurs non concernés est à prévoir...

#helena226

Selina226 a dit…

This announcement will surely create a negative feedback among customers, especially when we are heading towards offers that are increasingly tailor-made, personalized and customer-driven.
This drastic decision shows that the image value of sport programs in the television industry is such that they prefer to sacrifices some customers rather to decrease their expenses. The only limit is of course their viability in the long run. I guess this decision has been very carefully considered by them and that this outcome is preferable as the prejudice (economical, image, subscribers…) will be limited.


Sten226 a dit…

These sport contracts that the networks are signing are like giant elephants. They will not be moving and forcing a move would not work either I think. However, as technology advancing the video equipment gets lots better and cheaper. In my opinion, this will lead to an interesting possibility of covering local sports. It is already blooming in the US where college football engages huge audiences. Some of these sport events would suit the OTT type of broadcasting and if successful, the elephants will try to join the transition. Then we can really start discussing the end of the traditional TV.

marion gaud a dit…

On critique beaucoup Time Warner Cable, mais il ne faut pas oublier la faute à la NFL, NBA etc. qui sont les responsables de la hausse des droits sportifs et donc du coup de diffusion. Reste à savoir combien d'abonnés Time Warner Cabla a besoin de perdre avant de de se réveiller et trouver une meilleure alternative que de saigner les consommateurs ? @marion226

Sacha226 a dit…

En France, la flambée des droits sportifs dans le football n'a pas encore eu une incidence directe sur le tarif des abonnés de Canal +. Mais étant donné les moyens avec Beinsports pour avoir les droits de diffusion et l'inflation, il parait difficile pour le groupe Canal de ne pas envisager cette solution.
Rappelons que le sport est un programme qui n'a jamais été rentable pour les chaînes.
Concernant les OTT, l'Apple TV propose déjà la NBA et NFL en replay. Un premier pas dans le sport avant l'achat des droits ?

#Sacha226