Sports are becoming too expensive for TV networks

Magna analysts say they “don’t see the ever-increasing gap between ad revenues and rights fees as sustainable in the long term.”

This economics are especially problematic for broadcast networks that carry live sports games, because they don’t have access to subscription revenues to subsidize the high cost of programming, like cable networks do. Broadcasters rely on ratings, driven by viewership — which is getting increasingly older and aging out of the coveted 25-54 marketing demographic.

Advertisement

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement