Google Bidding for Sunday Ticket??

[ChicosBailBonds]

Question, Chicos... will speaking of the concept of "inertia" set off the fire alarm at your office?  As in consumers who are simply "set in their ways."

It's no secret that Boomers and, to a lesser extent, Gen X - regardless of race and socioeconomic status - love their TV sports.  Millennials, not so much.  Even so, if you look at who is consuming and paying for sports, you're going to see a lot of households who are doing so because they subscribed long ago and haven't paid much attention to the marginal increases in rates over the past decade.  These are folks who have subscribed to the same tier/package for 10+ years, and haven't done anything except pay the bill and perhaps occasionally call about a service outage.  The upside is that these customers are profitable and easy to retain because they don't rock the boat; the downside is that if you do lose these customers due to a significant event (i.e. change in employment/income, a move, sticker shock, etc.), chances are pretty good you're never getting them back (because they'll soon be set in their "new" ways).

Over the next decade, millions of boomers are expected to move, and most are going on a fixed income.  This is bad for the cable/sat companies because a) aging consumers are the most prone to "inertia" and b) they are going to face a significant event that may result in them dropping their cable/sat package.  On top of that, you have the Millennial crowd who are migrating to major urban centers where they discover that a DB-4 antenna and a wi-fi connection best serves their minimized need for TV entertainment.

The bet is being placed today because the people making the decisions (and benefiting from them) are simply getting theirs while the getting is still good.  That way they won't need to worry about moving out of their homes or going on a fixed income in 10 years, while their former employees will be looking for new jobs.

As far as sports goes, I think you are looking at a lot different data than people that make these decisions are around millenials.  Furthermore, people are living longer, and though boomers are retiring, etc, etc, they are sitting on a crapload of $$$ and many of them do love their sports.   

I disagree with your last paragraph because it only implies those "getting theirs while it is good" are those on the receiving end.  You've totally dismissed the other side of the table...those PAYING for it, and paying DEARLY for it.   You don't commit that kind of money unless you think you can make it back one way or another.  The flexibility in the rights will allow that. 

[ChicosBailBonds]

Make no mistake, the NBA deal and upcoming college football deals will be on the backs of consumers.  Saddle up to higher cable costs, more fees, and like lambs to slaughter tens of millions of people will pay a few more $ a month to watch Sportscenter and live sports.  ESPN and Turner know consumers are morons, especially when it comes to sports.  They have deduced that enough people pay will pay 10-20-30% more because of football and basketball, and they don't care about 5% of people that might defect.

Of course they will, just like I'm now being stuck to help pay for the shut down of the San Onofre Nuclear Power plant and most other Californians will as well.  That's the way the world works. 

Morons....no....what they know is customers pay for things they want and like any good business people, they are going to extra maximum value they can for that.  No gun to anyone's head.  If you don't want it, don't buy it.  Pretty simple.

[Canned Goods n Ammo]

If you don't want it, don't buy it.  Pretty simple.

The problem is, that's not how cable tv works.

If I want FXX, I have to pay for ESPN. I don't want ESPN, but I'm paying for it.

I know, I know, ala carte doesn't work, etc. etc. I get it, but what you are saying above isn't true.

I don't want 90% of the stuff I'm purchasing, but I have to purchase it.

[Chicago_inferiority_complexes]

If you don't want it, don't buy it.  Pretty simple.

Done.

[brandx]

If you don't want it, don't buy it.  Pretty simple.

What is that even supposed to mean?

I want ESPN and FS1. How do I buy "it"? Oh yeah, buy 200 channels I don't want to get the two that I do.

And the only answer our "expert" on the subject has is "If you don't want it, don't buy it"? Yeah, pretty simple. And a really brilliant answer as well.

[ChicosBailBonds]

The problem is, that's not how cable tv works.

If I want FXX, I have to pay for ESPN. I don't want ESPN, but I'm paying for it.

I know, I know, ala carte doesn't work, etc. etc. I get it, but what you are saying above isn't true.

I don't want 90% of the stuff I'm purchasing, but I have to purchase it.

Sure it works that way, it's just not finite level like you want it....I get it.  At a high level, it works. In other words you can't shed a specific channel, but you can blame Disney, Viacom, Turner, News Corp, etc or that.  If you don't want ESPN and Turner, get a package that is barebones that doesn't have it....yup, that means you won't get a lot of other stuff you want, but you won't incur that extra cost.  If you want a calling plan that has only a tiny bit of data plan, you're screwed....you have to buy a certain minimum.  No one is putting a gun to anyone's head to have data on their phone, even if you don't need the minimum you pay for each month.  Your option is to pay for it, or don't buy it.

Dish is going to come out with something in a few months where supposedly you can get ESPN, A&E and Scripps stuff for about $35 a month.  Here's the catch, Disney limited the number of subscriptions that could be sold.  Also, it is limited to one concurrent stream, meaning it is not really an option for a family.  Plus, it is broadband delivered which may or may not be high enough quality depending on your device, broadband connection, etc.  Here's an example where the "pipe" is changing and smaller bundle in place, but the conglomerates are putting in restrictions.   

Meanwhile....
In Boston, Chad Finn writes the "status quo in terms of where we will find NBA broadcasts" over the coming years -- on ESPN and Turner Sports after they re-upped this week -- "is a good thing." ESPN and TNT "do an exceptional job producing the telecasts and ancillary content." But when the deal "goes into effect two seasons beyond this one, this much is also certain: We’ll be wishing for the status quo with our cable bills, too" (BOSTON GLOBE, 10/10).

[jesmu84]

And here I thought it was the intrusive government being the ones responsible for all the restrictions and regulation in my life

[ChicosBailBonds]

And here I thought it was the intrusive government being the ones responsible for all the restrictions and regulation in my life

Problem on that side is you truly have no choice.  Don't like where your taxes are being spent...too bad, you get to pay them.  Bailouts, deficits, etc, etc...too bad, you pay.

[ChicosBailBonds]

Done.

Wasn't hard, pretty simple.  I'm trying to pare back a $250+ mobile phone bill....no one is forcing any of this on anyone.  First world problems. 

[Canned Goods n Ammo]

Sure it works that way, it's just not finite level like you want it....I get it.  At a high level, it works. In other words you can't shed a specific channel, but you can blame Disney, Viacom, Turner, News Corp, etc or that.  If you don't want ESPN and Turner, get a package that is barebones that doesn't have it....yup, that means you won't get a lot of other stuff you want, but you won't incur that extra cost.  If you want a calling plan that has only a tiny bit of data plan, you're screwed....you have to buy a certain minimum.  No one is putting a gun to anyone's head to have data on their phone, even if you don't need the minimum you pay for each month.  Your option is to pay for it, or don't buy it.

Dish is going to come out with something in a few months where supposedly you can get ESPN, A&E and Scripps stuff for about $35 a month.  Here's the catch, Disney limited the number of subscriptions that could be sold.  Also, it is limited to one concurrent stream, meaning it is not really an option for a family.  Plus, it is broadband delivered which may or may not be high enough quality depending on your device, broadband connection, etc.  Here's an example where the "pipe" is changing and smaller bundle in place, but the conglomerates are putting in restrictions.   

Meanwhile....
In Boston, Chad Finn writes the "status quo in terms of where we will find NBA broadcasts" over the coming years -- on ESPN and Turner Sports after they re-upped this week -- "is a good thing." ESPN and TNT "do an exceptional job producing the telecasts and ancillary content." But when the deal "goes into effect two seasons beyond this one, this much is also certain: We’ll be wishing for the status quo with our cable bills, too" (BOSTON GLOBE, 10/10).

I know, I know. I don't want to get into the whole bundling debate again.

But, let's face it, television entertainment is not a "buy what you want" enterprise. It just isn't.

I know that Nike doesn't let me buy just 1 shoe, but that makes logical sense to the consumer.

When I go to buy a bag of dorritos, I don't have to buy 9 different flavors that I don't like. I can just buy 1 bag. Makes sense to a consumer.

Eventually, there will be a producer/provider that figures out a better delivery system. It's the American way.