Blog: Sports - Page 9

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Traditional Pay-TV Squeezes More Revenue Out of a Declining Asset

Cover image for Traditional Pay-TV Squeezes More Revenue Out of a Declining Asset
Tim Mulligan
ESPN’s announcement last week about the latest Nielsen ratings showing that this season’s NFL coverage had seen viewing figures decline 9.7 from the 2016 season was startling enough. The follow up revelation that ad revenue had actually increased slightly by 2% over the same period, from $504 million in 2016 to $513 million last year, was a stark reminder of the pay-TV incumbent strategy to increase margins.
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Has The SVOD Killer Arrived?

Tim Mulligan
In 2014 ESPN had 95 million subscribers and its $10.8 billion in revenues accounted for 25.7% of Walt Disney Co’s $40.2 billion revenue. In 2015, ESPN lost three million subscribers and this 3% decline in subscriptions and the historic operating margins of 40-45% for cable and satellite, underpinned by ESPN’s trophy-like exclusivity on premium live sports events, were suddenly at risk.
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UFC’s Sale and the World’s Foremost Digitally Optimised Sport

Zach Fuller
The announcement of the $4 Billion sale of UFC to WME-IMG is the largest in sports history and a milestone in the era of modern digital content. Through its trajectory from public depredation as ‘human cockfighting’ in the 90s to a global entertainment powerhouse, UFC represents the world’s preeminent digitally optimized sport, and will remain a mark against which future-sporting content is managed online.
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