Is Content King?

Thought I would reblog this post, given this news:
Power Five’s College Football Playoff revenues will double what BCS paid
‘Group of Five’ leagues can expect a five-fold increase from College Football Playoff.

And Fox’s $80 billion bid for Time Warner, which is about content’s scale and leverage in negotiating with the recent Comcast-TimeWarner Cable and AT&T-DirectTV distribution deals.

You may remember from a few months ago that both the NFL Players Association and the NBA Players Association had organized labor strikes this season, disrupting the NFL’s typical pre-season practice regimen and truncating the NBA season. What you may not know is that the networks were on the hook to pay the broadcast licensing fees to the leagues even if negotiations between the leagues and players associations broke down and they couldn’t work out a deal.

That’s right, on those big time $4.3 billion network carriage fee deals (which go to $7 billion in 2014), the networks had to pay the leagues even if their employees (players) didn’t show up for work!

Are the networks overpaying? Doubt it. Twenty-three of the top 25 broadcasts this past fall were NFL games and one of three people watching TV this past Sunday were watching the NFL playoffs, and Tim Tebow wasn’t…

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