Dodgers Could Be Last Team To Strike Gold With Local TV Deal
It seems everyone is writing about the sports programming bubble, wondering whether it’s here and when it will burst. Just Google “sports TV bubble” and you’ll find this story from the New York Times in January, and these from FOX and ESPN in March. But it’s not just this year. Forbes warned of a sports TV bubble in late 2011 and followed up in early 2013 declaring that the bubble existed and was about to pop.
What is the sports TV bubble anyway? It’s the hyper-inflated prices sports networks, cable and satellite companies, and consumers pay to produce, show, and watch live sporting events. Live sports means no fast-forwarding through commercials on the DVR. Advertisers pump gobs of money into the system to place their products in front of an engaged 18- to-35-year-old male audience. Target consumers are valuable. They make sports programming valuable. Networks pay billions to broadcast sports to those consumers but everyone — not just sports fans — foot the bill.
How did we get here? I touched on these issues in this post in May, when Senator John McCain introduced a bill that would eliminate regulatory barriers to a la carte programming by cable and satellite companies:

