July 17, 2013
Sports Could Save the TV Business—or Destroy It

Here’s the week’s news in TV economics in one sentence: Without live sports, the TV business could fall apart; and because of live sports, the TV business could fall apart.
Confused? Ha, well, blame the bundle, perhaps the most successful and most misunderstood business model in entertainment.
If the $70 billion television industry is on the verge of imploding, as viewer attention flees to DVR’d shows and Netflix accounts, live sports is the keystone keeping the roof from collapsing. And live is the key word. The bulging of the bundle and the rise of on-demand video have thinned out ratings and partially severed the tendon between live-viewing and lucrative advertising. But in a time-delayed video world, the biggest games still drive dependable live audiences, making sports rights the most valuable resource in the whole TV ecosystem.
… so, that’s why cable needs sports.
Here’s why sports could destroy cable …
Read more. [Image: Reuters]

Sports Could Save the TV Business—or Destroy It

Here’s the week’s news in TV economics in one sentence: Without live sports, the TV business could fall apart; and because of live sports, the TV business could fall apart.

Confused? Ha, well, blame the bundle, perhaps the most successful and most misunderstood business model in entertainment.

If the $70 billion television industry is on the verge of imploding, as viewer attention flees to DVR’d shows and Netflix accounts, live sports is the keystone keeping the roof from collapsing. And live is the key word. The bulging of the bundle and the rise of on-demand video have thinned out ratings and partially severed the tendon between live-viewing and lucrative advertising. But in a time-delayed video world, the biggest games still drive dependable live audiences, making sports rights the most valuable resource in the whole TV ecosystem.

… so, that’s why cable needs sports.

Here’s why sports could destroy cable …


Read more. [Image: Reuters]

  1. texnessa reblogged this from shorterexcerpts and added:
    This is why I am in culinary school. People always have to eat.
  2. talix18 reblogged this from theatlantic and added:
    Live sports are the reason I have cable TV.
  3. shorterexcerpts reblogged this from peterwknox
  4. livetheolympicdream reblogged this from theatlantic
  5. jusqu-icitoutvabien reblogged this from theatlantic
  6. tvdisrupt reblogged this from theatlantic
  7. highandtight247 reblogged this from sportsnetny
  8. piecesoflogic reblogged this from theatlantic
  9. adaptnews reblogged this from theatlantic
  10. randycwhite reblogged this from theatlantic
  11. cdwt92 reblogged this from sportsnetny
  12. thewateronfire reblogged this from theatlantic and added:
    I tore up my TV-tax bill and moved on. I barely miss it.
  13. youmeandmyapi reblogged this from theatlantic and added:
    still figuring out if I’ve got it right. Pay $79 for fastest Internet. On top of that is NFLX+Hulu+Aereo - another $25....
  14. missindependentj reblogged this from sportsnetny
  15. mshkh reblogged this from theatlantic
  16. themoverandshaker reblogged this from theatlantic and added:
    Interesting read.
  17. musingsandthesuch reblogged this from theatlantic
  18. ericstevenson reblogged this from theatlantic