The NHL Comeback And The Opportunity In Streaming
from the the-league-with-the-least-to-lose dept
I have long been a proponent of more widely available sports league streaming options as a method for building revenue. While I firmly believe in the concept of blackout-less and minimal cost streaming for anyone who wants to watch a game on the computer, tablet, or phone instead of on their television, I do understand that there are some hurdles to consider. Chief amongst those hurdles is the enormous contracts many of these leagues have with broadcasting partners, particularly network TV partners, which can present a great deal of friction to streaming services that aren't their own.With all that said, if ever there was an opportunity to jump that hurdle, one embattled league would have it easier than the others, and that's the NHL. For anyone who isn't a hockey fan, the NHL lockout is essentially over and there will be a season this year. Like any league that has a work stoppage, however, one major concern is whether or not fans will come back to the sport after being denied the product for so long.
The pact is expected to last 10 years and split revenues 50-50 between owners and players, similar to the CBAs in the NFL and NBA. The players are set to return to the ice, but will NHL fans come back as well? The 2004-05 NHL lockout that wiped out an entire season did not keep fans away when hockey returned in October 2005. In fact, it was the exact opposite in many cases. Attendance increased for the majority of teams with nine teams experiencing a bump of at least 5% compared to the 2003-04 season. The Pittsburgh Penguins led the way with a 33% gain, as recent top draft picks Sidney Crosby and Evgeni Malkin made their Pens’ debut. Attendance for the Carolina Hurricanes rose 26% thanks to the team’s Southeast Division crown and first Stanley Cup title.All of that is absolutely true, but there are a couple of things to keep in mind. First, other leagues that have had work stoppages haven't faired nearly as well. The best modern era example of a post-stoppage negative effect is the MLB player's strike of 1995, after which there was a nearly 20% decline in attendance and TV revenues fell sharply.
Secondly, not all NHL teams felt the post-stoppage bump described above. Those that did not tended to be the teams with limited television exposure in 2005. The best example of this is the Chicago Blackhawks, which blacked out all home games before and after the strike, with home attendance numbers falling in '04 from 13k fans per game to just under that number by '07. However, something magical happened in 2008: owner and blackout proponent Bill Wirtz died and his son immediately lifted the blackout restrictions. Attendance immediately rose as fans had a way to embrace the team regularly and then bought tickets, climbing to a peak of over 22k fans per game in '09.
Finally, note that the NHL is in the weakest position in terms bargaining power over TV contracts, because it receives so relatively little in revenue percentage from their main contract with NBC (who does offer limited streaming of one game per week or so).
NHL teams derived 47% of their revenues last season from arena revenues controlled by the fan. These include gate receipts, concessions and parking. The other half of revenues hail from media contracts, luxury suites, sponsors and non-hockey events. Of the major U.S. sports, baseball is the next highest at 46%, but that figure is set to drop with the explosion of local media deals in the sport like the impending Los Angeles Dodgers deal worth more than $6 billion. The corresponding percentages in the NBA and NFL are 34% and 24% respectively. The NHL simply does not have the media rights fee millions (or billions) the other sports possess.This lockout presents the perfect opportunity for the NHL to embrace wide streaming of their games as a method for building current and future revenue through an expanded fanbase. We know that stoppages can and have hurt attendance. We know that the more options there are for fans to watch their teams play games, without restrictions, the better attendance comes back after stoppages. Finally we know that the NHL does not get the kind of broadcast fees the other leagues do, so they have the least to lose by going the non-traditional route.
The time for the NHL to embrace internet streams is now. Not with some NHL package that blacks out all the games of someone's home team. Real streaming, real exposure, real broadening of the NHL fanbase, leading to better attendance, more options for ad revenue, and ultimately more lucrative broadcast contracts.
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Reader Comments
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Center Ice
Many of the NHL fans have been rooting for the NHL to make Center Ice free as a way of encouraging fans to come back post lockout. Making it truly streaming could be the golden opportunity the NHL has been looking for.
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Re: Center Ice
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Option
I would gladly pay up to $2.99 to watch a hockey game on a per game basis instead of the whole season. That's WAY more money for the NHL than the whole season package, but not too unreasonable for a one-off of your favorite team in a lonely hotel room.
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Streaming Hockey Games
I was away that weekend and the Internet was my only option to watch and using it, it worked very well overall. One of the games was virtually flawless while the other had major buffering problems in the second period. Also noteworthy is that my internet access was the tethering app in my phone, not some corporate T1 line and it still worked pretty well.
This is very close to being a solution for the awful distribution NHL games get in hotels and such nationally. The other major sports you can always find, but not hockey.
The Center Ice package is wonderful as content but overall is evil in terms of content control. I remember trying to use it to watch games on a computer a few years ago when I was routinely working late during the playoffs and even if you were paying for it, you couldn't use it online if you were in a market where the games were carried on television. Horrible.
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Quite honestly I got so disgusted with the black outs that I ceased to care. I haven't watched a game in years...not even the play off games. It's a direct result of curtailment of broadcasting them on public access.
While this is my personal experience I doubt I am the only one that just gave up and no longer follows sports.
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Like the year without hockey I just don't seem to care much about it at all.
I think all sports should have their anti-trust exemptions pulled.
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I definately agree that the leagues need to lose their stranglehold..
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NHL
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You do realize this is a total laugh riot? The NHL (and other major sports leagues) will have to be dragged kicking and screaming for this to happen.
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Spot on
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sports is the only reason i don't cut the cord...
2. if not for *some* few sports i like to watch occasionally (the wife is probably more of a sports fan than i am), i would cut the cord in a nanosecond...
3. even at that, our ISP has a deal with ESPN, so i can watch ESPN3 online when the Gators aren't on 'regular' teevee; *supposedly* i can watch on my tablet, *but* didn't work last night when i tried to watch our glorious victory against georgia...
4. it is entirely TOO DIFFICULT to TRY and watch your favorite team's games when you have to jump through a bunch of hoops (no pun intended) to see them, have to be lucky enough to have the *right* ISP/teevee subscription AVAILABLE, much less it happens to be the one you have already, AND have to pay out the ass for a season or a game...
gee, that doesn't make me feel very wanted as a fan, just as a mark...
oh, and hockey sucks... not as bad as soccer, but still, 'icing'? 'offsides'? and all the rest of that hooey is retarded...
oh, the players can't get back in time to defend, so the offense has TO WAIT FOR THEM ? ? ? that is nuts... you don't get back, you get fastbreaked... might be exciting, eh, hosers... can't have that, this is rugby on ice, we don't care about any steenking scoring...
hee hee hee
ho ho ho
ha ha ha
ak ak ak
art guerrilla
aka ann archy
eof
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Re: sports is the only reason i don't cut the cord...
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Re: Re: sports is the only reason i don't cut the cord...
but you just made my point: the puck can't cross some arbitrary line before your skate does, okay, and *why* is that ? 'cause it would be 'unfair' to pass the puck ahead or something ? ? ? that sounds dangerous...
geez, football would have never invented/allowed the forward pass with that type of thinking... even stodgy baseball changes its rules to keep up with the materials/equipment and the times...
like i say, i don't get it: it SEEMS (from my admitted ignorance) that the rules PREVENT fast breaks and action...
c'mon, hockey scores are only *slightly* more than soccer: 2-1, 4-3, 1-0, etc...
hell, i'd rather watch full-contact scrabble...
art guerrilla
aka ann archy
eof
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Re: Re: Re: sports is the only reason i don't cut the cord...
As for an icing its there prevent defensemen from just drilling the puck down the ice anytime they get in trouble. You have to cross the half way line (red line) to be able to shoot the puck at the other end of the rink. It promotes offense.
Also as for the scores if you get a 14-7 NFL game well its basically a 2-1 game in hockey. Hockey doesn't have equivalent for a field goal. you do see 5-1 or 6-5 hockey games just like 50-3 or 56-42 NFL games.
Hope this helps you
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Streaming Games
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Cable TV vs Streaming
I will stream movies via Amazon Prime. Let me buy a single channel or pay a service to stream Boston hockey and baseball.
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re
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