[opendtv] =?utf-8?Q?Re:_[opendtv]_TV_Technology:_OTT_âDisappointin?=?utf-8?Q?gâ_for_Many_Sports_Organizations,_Per_PwC?Date: Thu, 14 Nov 2019 07:34:30 -0500
- From: "Craig Birkmaier" <dmarc-noreply@xxxxxxxxxxxxx> (Redacted sender "brewmastercraig" for DMARC)
- To: opendtv@xxxxxxxxxxxxx
On Nov 13, 2019, at 9:23 PM, Manfredi (US), Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Not surprising. When the sports industry has for so many decades depended on
welfare checks, generously donated by those who have no interest in pro
sports, the much more competitive, market-based, OTT model must seem meager
indeed. And yet, even OTT sites, such as Sling, provide at least some welfare
checks to sports - ESPN, in the Sling example.
Competition is the only mechanism that self-regulates an industry. In the
sports sector, it has been lacking. Hence, the obscene salaries.
One can forgive Bert for this misguided analysis about sports, as he appears to
have little interest in watching live TV events.
The problem with OTT sports packages is that it is very difficult to sustain a
business when your audience only shows up for a few events a month. Even ESPN
has been experiencing major problems with the programming it must create to
fill up all the hours between the events that people are paying to watch.
And Bert gets it completely wrong about Sling and the other VMVPD services that
provide OTT access to ESPN. ESPN is the lynchpin to Sling, and the other
services, for many viewers - without it they would have little reason to
subscribe.
The reality is that the money that flows through televised sports is based on a
very simple fact: live sporting events offer one of the last opportunities to
reach mass audiences that are willing to make appointments to watch -
advertisers are willing to pay a huge premium for these audiences, which in
turn allows ESPN and other purveyors of live sports to pay a huge premium for
the rights to these events.
Regards
Craig
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- » [opendtv] =?utf-8?Q?Re:_[opendtv]_TV_Technology:_OTT_âÂÂDisappointin?=?utf-8?Q?gâÂÂ_for_Many_Sports_Organizations,_Per_PwC?Date: Thu, 14 Nov 2019 07:34:30 -0500 - Craig Birkmaier