[opendtv] Re: NFL Fans Forgo Playoff Tickets, Prefer the Couch

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 22 Jan 2014 09:05:33 -0500

So Monty had a banner day, delivering a feast of news articles that illustrate 
the legal/business nexus that is the TV industry today. It's almost as if 
everything that Bert and I have been discussing has bubbled up to the surface. 
This is certainly not the first time, but it does illustrate just how much 
control the congloms STILL exert, and how frustrated would be competitors are 
getting.

The worst part, if we are to believe the pundits Monty exposed us to today, is 
that the congloms cannot lose. If the courts rule against them, they just kill 
broadcasting and move everything behind the MVPD pay walls.

As is ever the case, Bert has his own unique take...

> On Jan 21, 2014, at 9:49 PM, "Manfredi, Albert E" 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> Monty Solomon posted:
> 
>> NFL Fans Forgo Playoff Tickets, Prefer the Couch
>> 
>> By KEVIN CLARK and JONATHAN CLEGG CONNECT
>> Jan. 3, 2014
> http://online.wsj.com/news/articles/SB10001424052702304325004579298840229263538
> 
> Aren't there many times as many TV spectators as there could possibly be 
> sitting in the stadium? What would the team have to gain, if they lose so 
> many spectators? Or are the seats so expensive that fans in the stadium 
> provide more revenue than TV viewers?

The seats do not need to be full, just paid for. As the article states, the 
games did sell out, thanks to commercial interests buying up the remaining 
tickets. What was really interesting this time was that a local broadcaster 
actually contributed revenues to assure that it could carry the game.

Truth is, that warm bodies in the seats are not necessary. But they do add a 
lot of noise and emotion to the event - consider the 12th man phenomenon at 
Seattle; and Denver fans are not far behind.

Since Bert does not subscribe to cable, and is not a football fan, he likely 
did not notice how many college bowl games played to almost empty stadiums. For 
several of these game admission was free, and the stands were still empty. But 
ESPN was able to deliver at least one bowl game every day for two weeks.

The NFL is at the top of their game, and will continue to exploit their special 
relationship with the politicians. Whether it is the threat of blackouts to 
keep the stadiums filled; the costly sponsorship deals that let corporations 
name stadiums; the public/private partnerships that result in taxpayers paying 
a large portion of the cost for new stadiums, or the development of their own 
TV network; the NFL is all about maximizing revenues.
> 
> I'd love to see if any of these playoff games did get blacked out.

Nope. The only good news here is that many of the tickets that the commercial 
interests nought up were donated to veterans and others who typically cannot 
afford the huge cost of attending these games.

> Then we'd know whether or not demand elasticity exists. I have my doubts, but 
> it would be interesting to see the repercussions. And even more interesting 
> if no one seemed to care!!

Blackouts of regular season games are growing increasingly rare; there were 
only two game blacked out this past season. One reason is that the NFL changed 
the blackout rules, and in some cases only 85% of seats must be sold to avoid 
the blackout.

People clearly care. The University of Florida had a terrible season this past 
year, but most home games were on TV.  For many of these games the stands were 
half full, even though most of the tickets were sold (mostly to season ticket 
holders). The locals were so disgusted by the last game of the season against 
FSU, that more than half of the stadium was filled with FSU fans.

This all raises the question of whether anyone will need to go anywhere to 
enjoy top tier entertainment in the future. As TVs get larger and resolutions 
get higher, one can argue being home is as good or better than being there. Why 
risk going to a theater and being shot because you have the audacity to send a 
text message during the commercials, or enduring the shakedown at the 
concessions stand for a bag of popcorn.

One can pay for more than a year of MVPD service for the cost of a single 
ticket to the SuperBowl. Then again, in a nation of more than 300 million 
people, finding 80,000 willing to pay is not all that difficult.

Regards
Craig 
 
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