NFL Rights Fees For TV Networks Could Soar, To See A 57% Hike: Analyst
- by Wayne Friedman , September 10, 2020
Network television's growing dependence on still-strong NFL programming could see “gigantic” increases in rights fees TV that networks pay to the league, according to MoffettNathanson Research.
MoffettNathanson estimates that a new round of multi-year contracts set to get underway could see a massive 57% rise to $8.8 billion from $5.6 billion per …
The leagues are taking a big chance pushing for more and more money so the players can get even richer. It's a mistake to assume that the networks have no choice but to pass higher costs on to sports fixated advertisers who will keep paying more and more forever---simply in a quest for ratings. As I keep pointing out, the games are not necessarily profitable as purely network entries but are lucrative content for the O&O stations and affiliates as well as being an important rationale for for re-transmission fees which, curently generate the largest profits for the networks. While the leagues and players may get what they want this time, there may come a point where the networks have developed profitable SVOD/AVOD services--say four or five years down the road----when they say no. Then what?