Media rights fees paid in the US to broadcast sporting events
As a country, we love sports, especially regional sports and live sports, which are considered must-have TV programming. Unfortunately, fees for this type of programming is expensive and the costs keep rising, and TV networks know they can pass those costs back to cable companies like us and ultimately to you, our customers.
When we don’t agree to the fee increases, the TV networks won’t give us access to air your favorite sports. We don’t think that’s fair, and we hope you agree that negotiating to keep your costs at a reasonable price is worth the effort.
Regional sports networks, or RSNs, are among the most expensive channels on your lineup. Originally RSNs carried all the regional, professional and collegiate teams on one channel, with one fee. Today, sports programmers spin off teams to their own separate channels, each with their own fee, so that they can get more money for the same games.
RSNs also require all TV providers to offer their Networks on the most basic packages to reach the most homes. This way, they can charge everyone for their Networks – even those that don’t want it.
Growth in number of sports networks and
cost per network impacts your bill every month
Perhaps the best time for a league network to go dark on a cable or satellite operator is during their offseason, because fans aren’t missing any live games. Thus, NFL Network and NFL RedZone going dark on both Dish and Sling this Thursday night isn’t exactly the most surprising or devastating thing in the world…
AT&T said, “The NFL Network and Red Zone Channel remain available to all fans on DirecTV. However, as we continue to manage content costs, we could not reach an agreement with the NFL to continue to carry their channels on U-verse TV and DirecTV Now.”
Davis revealed that he thinks there’s still a possibility that the 2020 season could be completely canceled, which is an option the league hasn’t ever publicly mentioned.
An RSN owner finally admitted publicly what we already knew: the ONLY viable RSN economic model is to force everyone who takes multichannel television to pay an exorbitant price/sub/month to subsidize the TINY minority of fans that want to watch the channel; essentially forcing subscribers to subsidize how much the RSNs have overpaid the teams for media rights.
Greenfield said the current RSN economic model – which essentially forces pay TV subscribers to subsidize the cost of the channels, even if they don’t watch them – does not work anymore for distributors.
Sports programming now costs pay-TV consumers an average of $18.37 a month and accounts for 40% of programming costs for cable, satellite and telco video providers, according to SNL Kagan stats published by the Los Angeles Times Monday. newfound bounty, those with cable and satellite subscriptions bore the brunt of the cost.