For those bitter at the Sportsnet + nonsense.
In my simplest terms if I am understanding this correctly...
Sportsnet paid a premium for exclusivity and control of NHL coverage in Canada. To make that investment work, it has to convert hockey fans from relatively low-revenue cable viewers into higher-revenue streaming subscribers, advertisers, and premium-content customers.
Here's some math...
Sportsnet earns money mainly from cable/satellite subscriber fees and advertising. But those revenues are under pressure from fewer people are buying traditional TV packages.
A digital viewer generally generates much less revenue than a traditional TV viewer, roughly 20 cents for every dollar in the old model.
So Sportsnet cannot simply rely on the same old cable bundle to cover a much larger annual rights bill. It needs to make hockey itself generate more money directly.
It's not awesome for you, but its the only way a provider can pay off that huge nut they paid to the league for its rights.
For those bitter at the Sportsnet + nonsense.
In my simplest terms if I am understanding this correctly...
Sportsnet paid a premium for exclusivity and control of NHL coverage in Canada. To make that investment work, it has to convert hockey fans from relatively low-revenue cable viewers into higher-revenue streaming subscribers, advertisers, and premium-content customers.
Here's some math...
Sportsnet earns money mainly from cable/satellite subscriber fees and advertising. But those revenues are under pressure from fewer people are buying traditional TV packages.
A digital viewer generally generates much less revenue than a traditional TV viewer, roughly 20 cents for every dollar in the old model.
So Sportsnet cannot simply rely on the same old cable bundle to cover a much larger annual rights bill. It needs to make hockey itself generate more money directly.
It's not awesome for you, but its the only way a provider can pay off that huge nut they paid to the league for its rights.
@handsofstone_99 ๐คฃ When I posted that I actually thought it was a logical breakdown of why they are charging fans out the ass for those additional games. Should stick to LinkedIn.
@Adam__Polkowski@bradosundo@vancouver202 Dear Bot,
"Canadian companies feel like they need to compete with their American counterparts." Do you work for all these companies? I have not heard this release of "feelings" from any of these unnamed companies you are referring to.