I know this will show my ignorance, but who loses, what is the financial impact of all of this?
The NFL is making money because they are selling the broadcast rights to various networks. Is the NFL guaranteed “x” number of dollars for selling the broadcast rights, or is the total they receive dependent on the ratings for the broadcasts, and then they get paid after the fact?
When the networks sell commercial time on the games, are they paid “x” amount, or are the amounts they get paid by sponsors dependent on the ratings??
I can see that, if ratings are down by , say 10%, that there would be 10% less revenue coming in. But who is taking it in the shorts; who in the revenue line has to take the hit from less money coming in??? The NFL, the broadcast networks, the sponsors who pay for commercial time? Who is getting the raw end of the deal?
The networks will take it in the shorts because the the prices for ad time will drop. The NFL still gets their money either way.
But when the next time the network contracts come up, that’s when the NFL will start feeling the pain.
I know that genarally if the nets underperform on the ratings then they have to give free time to the buyer. If the people stop watching EVERYTHING presumably wI’ll drop as a result. TV is where those big player paychecks become possible. Dominoes going down...