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re: Sling TV Releases Sports Package - $5 Per Month
Posted on 2/9/15 at 9:08 am to rintintin
Posted on 2/9/15 at 9:08 am to rintintin
No, I'm not. I'm looking at the fact that they MUST honor their deals with sports content providers and to do that its impossible for them to charge the low prices some seem to think they would provide. On top of that, the demand is not as high as y'all seem to think. Again, their highest rated content on average is Monday Night Football at 13 million TV sets. Even if you are generous and assume they get those 13 million plus another 7 million or so for other sports ona year round subscription, that's still 80 million less subscribers than they currently have. They would have to make up for that lost revenue to make a profit. They aren't going to be able to do that with simply upping the price for commercial time.
This post was edited on 2/9/15 at 9:15 am
1
Posted on 2/9/15 at 9:26 am to Dr RC
quote:
On top of that, the demand is not as high as y'all seem to think.
Methinks you need to brush up on your supply/demand curve.
If demand is not high, they cannot charge a high price.
They will have to find the sweet spot to generate the most possible income.
And their contracts with the sports league are of no concern to consumers. If they can't pay up, it is up to them to make up the revenue elsewhere. That's how the market works. The only reason they payed those huge figures to broadcast games is because they know they have 100 million subscribers through cable, as do the sports leagues. The price would be different if viewership was different.
ETA: consumers control pricing in a free market, not the other way around (aside from monopolies, which we could argue cable companies are actually, but that's a whole different topic).
This post was edited on 2/9/15 at 9:32 am
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