Men's Football

OPINION | Fragmentation of sporting rights will be short term pain, long term gain

Comments (1)
  1. Johnny no name says:

    “The first main benefit, as is shown by the TV rights deal announced this week with Paramount+ and Network Ten, is increased competition means better rights deals, with the recent announcement being just the tip of the iceberg.”

    See, the trouble here is that the new TV rights deal is by many measures worse (not better) than the current one with Fox. They currently get $32m per year from fox without having to pay any of the production costs. The new deal gives them the same amount, but since they have to pay for some of the production costs, a chunk of that $32m is already spent. The APL has also had to forfeit 2.5% ownership to get the figure up to $32m.

    Look, maybe this thing will work out well for the Aleague, but there’s no evidence that fragmentation the author speaks of is driving up the cost of TV rights – at least not in this latest deal certainly doesn’t provide. It’s entirely possible that it works the other way. Streaming services need to compete for subscribers who have 10 other options to choose from. This keeps monthly subscription fees low (e.g. $8.99), such that subscription revenue doesn’t allow for the kind of windfall rights deal the author seems to have in mind.

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