The end of the cable gravy train
- Thread starter joeydavid
- Start date
Gravy train is a good term. It isn't like the money is going away from college athletics. Just not the crazy amount of money that many people were essentially forced to pay as a pseudo tax, and that goes for all sports. The result will be that players, coaches, owners, etc are earning less Godly sums of money. Fine with me.
Yes greed has been the main driver with little desire to compensate players. I cut my cable when the Longhorn Network was shoved down cable subscribers throats in the Houston metro. ESPN shed any pretense of being non-partisan. ESPN insiders should be called the BT/SEC/ND paid subscription service. I posted a link a while back from Joel Klatt criticizing the build-in advantages both the SEC and Big Ten have - and with regard to the college football playoffs, and the BCS before it, the system is rigged in the SEC's favor. People are cutting cable as fees escalate and subscribers are charged for services they don't want.
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I believe this has been talked about on here before, and it's only becoming more obvious.
The cable networks will be even worse off by the time the next realignment phase comes around in 2023. The gravy train won't stop, it'll just change form. Companies like Amazon, Netflix, YouTube, etc. can offer much more to schools than the cable companies ever could to leave their current conferences and start a super league.
That's why you'll end up seeing a conference with Ohio State, Notre Dame, Alabama, Oklahoma, Texas, etc. all together. It'll all be a la carte with streaming and consumers will want the best product possible. Why pay all this extra money for Indiana or Wake Forest when you can see USC, Florida State, and the likes play each other each week? Because that's the reality.
That's why these next 6-7 seasons will be the most critical ones in Pitt history. We need to be good in football and basketball for the foreseeable future so as to not get left behind in the next wave, because there's going to be lots of schools left in the gravy train's dust. We definitely won't be in the top tier, but we can still fight for a spot in the tier below that one. There's a lot of tech giants who'll get in on it and will want their own super league. It all seems like hyperbole right now, but that's exactly what will happen.
The cable networks will be even worse off by the time the next realignment phase comes around in 2023. The gravy train won't stop, it'll just change form. Companies like Amazon, Netflix, YouTube, etc. can offer much more to schools than the cable companies ever could to leave their current conferences and start a super league.
That's why you'll end up seeing a conference with Ohio State, Notre Dame, Alabama, Oklahoma, Texas, etc. all together. It'll all be a la carte with streaming and consumers will want the best product possible. Why pay all this extra money for Indiana or Wake Forest when you can see USC, Florida State, and the likes play each other each week? Because that's the reality.
That's why these next 6-7 seasons will be the most critical ones in Pitt history. We need to be good in football and basketball for the foreseeable future so as to not get left behind in the next wave, because there's going to be lots of schools left in the gravy train's dust. We definitely won't be in the top tier, but we can still fight for a spot in the tier below that one. There's a lot of tech giants who'll get in on it and will want their own super league. It all seems like hyperbole right now, but that's exactly what will happen.
yep, and getting closer to end of me watching it anywhere. The money with no cap in sight, the scandals and everything else. I can just watch the nfl.
That's so true about the built in advantages the SEC and Big 10 have. I showed last year just how when the Big 10 had like 4 of the top 8 ranked teams that there was absolutely no real justification for moving teams like Wisconsin and PSU up so high so fast. And how Big 10 teams seem to get double points for their wins, and only half credit for their losses.
The SEC also has the best players, teams, and loyal fans. Maybe there is bias, but the system certainly isn't rigged for them.
Sorry Amazon/netflix/etc will not throw that kind of money at college sports because they would not be able to pass those cost onto millions of people who never want the product to begin with like cable companies did. I like netflix, but i only have it from late September to early May. I know I am in the minority but i state that to show how easy it is to get rid of it as they don't have those damn contracts. No contrast mean if you raise the price high enough customers will walk.
That means a la carte that means schools with huge followings to support the product. That means all the Big 10 schools minus Northwestern are safe. But a la carte is less money than cable charging everyone.
Mike, I have to disagree. The FAANG companies could easily dwarf what the conferences and members are earning currently. It’s inevitable that they jump into the college sports ring. Companies like Netflix and Amazon are spending more and more money on live productions. Amazon has already jumped into the NFL market and YouTube TV took on the NBA Finals. Amazon executives have flat out said that they’re going to be in the next round of negotiations for college football. I’m getting the idea of a so-called super league from the mouth of said Amazon executive.
Amazon and Netflix spent a combined $10.8 billion in content last year. In one year. They’d easily be able to outspend anyone and, frankly, it won’t be close. In comparison, the current B1G deal is $2.6 billion for six years, or $433 million per year. That’s around $31 million per school. Ohio State and Michigan gets the same as Indiana and Rutgers. SportsIllustrated suggested these companies could spend over $100 million for each school they want, per year. That’s a huge difference, one that schools wouldn’t be able to pass up for the sake of conference allegiances and loyalty.
You also have to remember that whatever number of people cut their subscriptions would be easily made up for, and then some, with people signing up if these companies purchase the rights to college football, NFL, etc. The difference in cost would be minuscule, if anything. Heck, there’d be no difference in pricing with Amazon. They’re involved in just about everything right now, and sports will be the next step. I think you’re underestimating both the size of the companies and the value that live sports production brings them.
There in one big difference between Netflix and the current/previous cable tv model. It only costs about $10 per month to get Netflix, and probably less for Amazon Prime when you average it out. ESPN was fleecing cable customers for $5+ each per month, and most households in the US had ESPN. So tens of millions at $5 each per month adds up to a S***TON of revenue.
Netflix and Amazon aren't going to dedicate $5 per month ( or 50% of their subscription revenue) to sports. But, they will likely dedicate a smaller portion, which means less money going to those entities like conferences, and more money in the wallets of consumers to spend elsewhere. A win win for 99% of people.
Netflix and Amazon aren't going to dedicate $5 per month ( or 50% of their subscription revenue) to sports. But, they will likely dedicate a smaller portion, which means less money going to those entities like conferences, and more money in the wallets of consumers to spend elsewhere. A win win for 99% of people.
Why even go through Netflix or Amazon or anyone then? Sell subscriptions and ads and great you own channel and keep all the money in the NFL, MLB, B10, SEC, ACC,etc. etc.
Honestly they have enough content to skip a middleman if they go the streaming route vs traditional broadcast or still sell to broadcast with the streaming. The only reason they needed broadcast networks and cable was cost of operating a channel 24/7 and FCC regulations. Creating their own streaming network eliminates the 2 biggest draw backs.
Honestly they have enough content to skip a middleman if they go the streaming route vs traditional broadcast or still sell to broadcast with the streaming. The only reason they needed broadcast networks and cable was cost of operating a channel 24/7 and FCC regulations. Creating their own streaming network eliminates the 2 biggest draw backs.
If I could subscribe directly and get all of the ACC games- there would be no reason for cable.
What is stopping a large group of schools from deciding they want to form their own megaconference in which they pay their athletes? Let’s say 32 teams as an example. Then they would negotiate a massive deal in which the schools are paid a ton of $.
I pay $250 a month for verizon phone, internet, cable package and have no desire to leave. It’s a fact of life, you have to pay for things you enjoy.
Then you’re getting ripped off. All those things together should be closer to $150 than $250.
But Netflix and Amazon wouldn't just fold the sports in for free. They would also have ad revenue, which is significant, they wouldn't have with streaming shows and movies.
Not if he is talking cell lines. Just 2 verizon cell phones with unlimited is going to be $160 on their own.
Nothing, and that's coming. You'd have to get state legislatures to pass laws to allow it, but that would domino effect once one did it.
It's going to be a lot longer than many think before any quantum shift happens. Cable isn't going anywhere and nobody is going to breakaway to form a super conference. The big teams are already printing money. It's not going to stop anytime soon.
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