Television’s Last Stand

I nearly cut the cord last week. I wanted to do it earlier, when the hockey and basketball playoffs ended, but some members of my household wanted to watch the FIFA Women’s World Cup, then it was the Pan Am Games…

Which is to say that, in our home at least, live sports is the last remaining reason to pay for cable TV.

It’s a good one, mind you. A hard-fought elite-level sports contest is simply the best entertainment around, involving strong characters, intense pressure, great achievements, profound loss, and far less predictability than 98% of the dramatic storytelling currently out there.

It’s also an incredibly lucrative business, especially for the pro players (not that I don’t think the money should go to those who play the game, as opposed to those who own the teams). Our appetite for professional sports continues to grow—the industry in the aggregate is now said to be worth more than $500 billion globally—and so the scope of the salaries earned by [mostly] men to play games has become patently absurd. The average salary of a Major League Baseball player, for instance, will exceed $4 million this year (That’s the average salary mind you; ‘A Rod,’ the New York Yankees star third baseman, may earn as much as $50 million this year, including marketing bonuses). If Joe Average Baseball Player were to play every minute of every game this summer (and he won’t), he will earn $8230 per hour of playing time. Patently absurd, given the utter lack of intrinsic social value attached to the work he does. Incidentally, Joe is also allotted $100 a day in meal money when he is on the road. Wouldn’t want him to feel the pinch in those expensive hotel restaurants.

But we fans have only ourselves to blame. We’re the ones who fill the stadiums, tune into the games, and yes, pay those cable TV fees, regardless of the cost. We’re the ones who seem to think that our team winning or losing somehow reflects well or poorly on us as individuals. In fact we use terms like “WE won” when a team of players whom we will never meet, and who are only rarely from our home town, never mind our home country, outscores another team that we don’t label ours. It’s more than a little odd.

What’s interesting though, is where the video marketing of big league sports is going. Surely with broadband expanding steadily, and video streaming gaining popularity by the day, it is only a matter of time before these sports franchises begin to control and market their games online, in high quality imagery. Forget ESPN or Rogers Sportsnet. These teams will find ways to make even more money by charging you directly to watch their games via their own internet channels, say in packages featuring certain opposing teams, maybe all home games, or of course with ‘tickets’ for individual games. How can it possibly not go this way?

Well, one possible way is for government agencies to prevent this sort of ‘vertical integration’ of the marketplace, akin to the 1948 antitrust case which prevented Hollywood studios from owning and operating their own theatres, to which they would grant exclusive rights to their movies. Like that case, will we see governments move to forestall undivided control of the production and distribution of sports entertainment?

It remains to be seen; the conventional TV networks have proven to be more resilient than many believed they would be in finding new revenue models (like money from Netflix), but the trends are there. TV viewing declined roughly 10% in the last year, and it’s not like the major sports franchises have to go out and build their brand. It’s there now for them, bigger and better than ever, primed for exploitation via a new medium.

5805107962_48e85060aa_zI’ll likely simply try, at some point, to renegotiate my deal with my cable TV provider. I’ll do my damndest to cherry pick just those channels which carry the games of the teams I like to follow, and my cable provider will do their damndest to ensure that I’m obliged to pick up as many channels as possible in order to do that. Shaw Cable, my provider, for instance and in most obnoxious fashion, spreads the Vancouver Canucks games over four or five of their various channels, then places those various channels in different packages, each of which costs more.

My desire for big league sports entertainment may be a passion which adds meaning to my life, or it may be a pathetic identification with a bunch of rich strangers. Either way, and even if the medium changes, one thing is certain: meeting that desire is not likely to get any cheaper.