said by nfotiu:
Take the LA Dodgers for example, 350 million per year!!! »espn.go.com/los-angeles/mlb/stor ··· 4-report
You know how many people watch an average Dodger's game. 50,000!!
So, the 5 million households in the Dodger's market are going to be paying 70 dollars a year for 50,000 of them to watch their games.
Either the Dodger's or Time Warner would go bankrupt over night if RSNs were forced to a la carte. If they were to get that same revenue from only people watching their games (which is the way it should be), they'd have to charge $7,000 a year for their new network!
This model is a scheme that will not last much longer. And hopefully the Dodger's deal is the straw that makes it all come crumbling down.
Couple of comments:
I did some looking and found that the Dodgers averaged a 1.94 rating last year.
Also saw where LA market has near 13M viewers. So that means that the Dodgers averaged 252K viewers/game. That would be near $1400/viewer/year.
But when you average that out to all households, it drops dramatically. And it doesn't count the ad revenue they get as well.
Doesn't seem too hard to me to make money.
All of that being said, I see it as a never ending spiral.
Players want more money. Teams say they need more money. TV rights pay them more money. Cable fees (and ticket prices go up).
Players see the team making more money and then want more.