Cable Cutting and Sports

Economist Tyler Cowen wonders what cable cord cutting will do to the NBA. Here’s a sample:

As for the eventual hit to total NBA revenue, the owners and the players will have to cut back. The owners will spend less on stadium upkeep and trainers and coaches. Might the franchises in Sacramento and Memphis close up shop? In the meantime, everyone will work hard to try to monetize video streaming.

Except, of course, for MLB, which perfected video streaming and sells their technology to others. A very good sign for the health of baseball broadcast revenue is that streaming broadcasts of baseball games on MLB.com now often include commercials during the breaks. In the past, a big banner came up for two quiet minutes altering the viewer that nothing was broken, but the broadcast was showing a commercial. Now, as people cut the cord, that advertisers are moving into that space separate from the actual game broadcast. If and when that streaming advertising revenue surpasses the local revenue, baseball teams won’t need cable anymore, and MLB can finally get rid of the blackout rules.

from baseballmusings.com http://ift.tt/2pMVOGA