Cable Sports Nets Pay More To Play

guys watching sports on tvCable sports networks continue to be the most inefficient for cable operators, when assessing what they pay for those channels versus the overall ratings they receive.

In looking at data obtained by MediaPost--using research from Nielsen Marketbreaks and SNL Kagan--the cost per rating point for cable operators is the highest when it comes to NFL Network, ESPN, Golf Channel and Versus.

NFL Network posts a $0.52 cost per tenth of a household rating point. This calculation comes from examining total day household ratings and the monthly affiliate fees per subscriber. ESPN is right behind at a $0.46 cost per tenth of a household rating point.

Much of this relates to the problems NFL Network has had in getting distribution over the past two years.

Cable operators have complained that spending an average of 83 cents per subscriber for the NFL Network isn't worth it--especially since what football fans really want is in short supply: Eight live NFL games that the NFL Network runs on its channel.

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ESPN Classic came in at third place (30 cents per tenth of a household rating point). The Golf Channel (28 cents), young-skewing lifestyle network Fuse (27 cents), and Versus (25 cents) were next in line.

One TV researcher cautioned that these are general associations.

He says one argument for the cable sports networks is that they virtually target hard-to-get male viewers, and even harder-to-get young male viewers. They typically get a higher cost-per-thousand viewer price than other demographic groups for cable operators that get local ad inventory to sell in sports channels.

Increasingly, broadcast stations and networks are looking to grab their share of monthly cable subscriber fees through retransmission consent deals--all because they believe their viewership is much higher than the cable networks.

TV stations--in particular CBS stations--have been getting about 25 cents a month per subscriber from cable operators, according to executives.

Some believe this to be a bargain next to what cable networks are getting. For example, CBS' 25 cents per sub per month fee would be a cheaper deal than Fuse or Golf Channel, given CBS' viewership.

Detractors say the difference is that CBS does not give cable operators local advertising inventory to sell. But broadcasters say having TV stations on cable systems adds value, thanks to viewership. That's something that cable customers pay to cable operators in the form of overall monthly programming packages.

As for the most efficient networks--viewership versus monthly fees--there a number of networks where the effective cost per tenth of a rating point is one cent. This list includes: Hallmark Channel, Spanish-language network Gala, BBC America, Turner Broadcasting's TruTV and Scripps Network's Food Network.

 

 

Network

2008 YTD Total day household rating

Monthly Affil Fees Per Sub (2008)

Cost per tenth of a rating point

NFLN

0.16

0.83

0.52

ESPN

0.80

3.65

0.46

ESPCL

0.06

0.17

0.30

GOLF

0.09

0.25

0.28

FUSE

0.03

0.08

0.27

VS

0.11

0.27

0.25

ESPN2

0.28

0.52

0.19

ENN

0.09

0.16

0.17

VH1C

0.04

0.06

0.14

MUN2

0.08

0.10

0.13

SPD

0.16

0.19

0.12

CNBC

0.24

0.27

0.11

TNT

1.04

0.93

0.09

STYL

0.16

0.14

0.09

DHLT

0.17

0.14

0.08

G4

0.10

0.08

0.08

CNN

0.61

0.47

0.08

NGC

0.26

0.20

0.08

ENT

0.30

0.22

0.07

SOAP

0.20

0.14

0.07

MTV

0.48

0.32

0.07

FX

0.58

0.37

0.06

TBSC

0.81

0.46

0.06

BIO

0.18

0.10

0.06

WE

0.18

0.10

0.06

THEN

0.16

0.09

0.06

BRVO

0.31

0.17

0.05

MIL

0.13

0.07

0.05

TDSNY

0.23

0.12

0.05

USA

1.08

0.52

0.05

DSCI

0.15

0.07

0.05

DISC

0.56

0.26

0.05

TWC

0.24

0.11

0.05

AMC

0.50

0.23

0.05

TLC

0.38

0.17

0.04

FOXNC

0.94

0.42

0.04

WGNA

0.27

0.12

0.04

BET

0.34

0.15

0.04

CMT

0.18

0.08

0.04

GSN

0.25

0.11

0.04

SCIFI

0.46

0.20

0.04

VH1

0.34

0.14

0.04

AEN

0.64

0.25

0.04

FAM

0.56

0.21

0.04

HI

0.16

0.06

0.04

SPIKE

0.55

0.20

0.04

HIST

0.58

0.21

0.04

MSNBC

0.43

0.15

0.03

ID

0.23

0.08

0.03

OXYG

0.26

0.09

0.03

TRAV

0.18

0.06

0.03

LIF

0.78

0.25

0.03

NKTNS

0.20

0.06

0.03

MTV2

0.15

0.04

0.03

NICKNAN

1.73

0.45

0.03

HGTV

0.54

0.14

0.03

APL

0.28

0.07

0.03

CMDY

0.50

0.12

0.02

TV1

0.18

0.04

0.02

GAC

0.09

0.02

0.02

TVL

0.50

0.10

0.02

TVGN

0.11

0.02

0.02

TOONADSM

0.90

0.16

0.02

LMN

0.52

0.09

0.02

GALA

0.13

0.02

0.01

TRU

0.62

0.09

0.01

FOOD

0.49

0.07

0.01

BBCA

0.90

0.11

0.01

HALL

0.70

0.06

0.01

 

 

 

 

Household Rating: Nielsen Marketbreaks 1/1/08-12/31/08, Live + SD

Affiliate Fees: Estimates from SNL Kagan (as of 9/3/08)

Premium Nets excluded

 

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