Why TV ratings in sports are more important than attendance

[Tugg Speedman]

Why TV ratings in sports are more important than attendance
The amount of revenue generated is expected to finally surpass gate receipts in 2018.

http://www.the42.ie/tv-ratings-more-important-than-live-sport-2451415-Nov2015/

THE AMOUNT OF revenue generated by major North American sports team from the selling of media rights (TV, radio, internet, etc.) is projected to surpass the amount of revenue generated from ticket sales in 2018, according to a PricewaterhouseCoopers report.

As a result, television ratings have now become the driving force behind sports, even bigger than actually bringing fans to the games.

This is not to say that ticket sales are not important. They are still a major revenue stream and have a stronger potential impact on the perceived popularity of the team.

That is, the more popular a team appears to be, the more fans they will generate, the more people they will draw to television sets, and the more merchandise they will sell.

Empty stadiums have the opposite affect. Just ask the Tampa Bay Rays, who routinely finish at the bottom in attendance but have strong TV ratings, regularly finishing in the top 15 of all Major League Baseball.

But when it comes to pure revenue, media rights revenue is expected to reach $20.6 billion in 2019, compared to $20.1 billion for ticket sales.

[StillAWarrior]

There's some really interesting stuff in there.  Two things immediately jump out at me.  First, I'm amazed that media rights was the lowest revenue stream as recently as 2013.  Second, the current lowest of the revenue streams (merch) is approximately where the highest (merch and gate) were ten years ago.

[warriorchick]

I think this graphic would be a lot more meaningful if it were broken out a little more. 

I would be interested to see what the graph looked like if it was college sports only, or football vs. basketball.  I doubt that the lines would parallel this graph if you drilled down more.  I bet they are all over the place.

[ChicosBailBonds]

I think this graphic would be a lot more meaningful if it were broken out a little more. 

I would be interested to see what the graph looked like if it was college sports only, or football vs. basketball.  I doubt that the lines would parallel this graph if you drilled down more.  I bet they are all over the place.

Correct you are

[Coleman]

I think this graphic would be a lot more meaningful if it were broken out a little more. 

I would be interested to see what the graph looked like if it was college sports only, or football vs. basketball.  I doubt that the lines would parallel this graph if you drilled down more.  I bet they are all over the place.

Yep.

This chart tells me nothing.

MU's breakdown probably looks way different than the Dallas Cowboys or LA Lakers or New York Yankees.