re: SEC TV Deal

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For real? They’re actually underwater on their contracts with these leagues?

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All media rights deals, regardless of the sport, are overvalued. Media companies have continued to pay more and more for these rights because sports are guaranteed to attract viewers and advertisers. In an era of plummeting ratings, even moderately viewed games can provide a boost to a network’s overall ratings, and impact advertising rates.

Networks can also promote their other programming and entertainment options during the broadcasts.

ESPN is at a disadvantage compared to other networks and streaming companies. They don’t have anything worth viewing outside of live broadcasts of games. Their other programming options attract a tiny audience, and the demographics aren’t attractive to advertisers.

So ESPN is stuck in an endless cycle. They have to keep paying more and more in rights in order to provide programming that attracts viewers.

Just a few years ago these media rights were significantly cheaper, and ESPN’s revenue was heavily aided by cable and satellite subscribers. Cord cutting has negatively impacted ESPN more than any other cable channel. Plummeting revenue from cable subscribers coincided with increases in the amount they were paying for rights to broadcast games.