ROOT Sports Streaming Service
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Re: ROOT Sports Streaming Service
Blackouts schmackouts
- Sibelius Hindemith
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Re: ROOT Sports Streaming Service
I heard somewhere that you can watch most Mariner games for free this upcoming season on FUBARtv.
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Re: ROOT Sports Streaming Service
If you can trust the Interwebs, The M's currently make about 45 Million a year from Root Sports. If they were to ditch cable and go straight streaming for say $20 per month, some back of the napkin math tells me......
$20 Monthly fee = $240 per viewer.
$45,000,000 / $240 = 187,500 viewers.
Between all the Mariners, Kraaken and Blazer fans I personally think it would be really easy to find a couple hundred thousand households that would be willing to do that. Plus you would be opening up the market world wide and not just stuck in states that carry root on cable. The only detriment is that it might make it harder to draw new fans in and lose a bit of viewership from the casuals out there.
$20 Monthly fee = $240 per viewer.
$45,000,000 / $240 = 187,500 viewers.
Between all the Mariners, Kraaken and Blazer fans I personally think it would be really easy to find a couple hundred thousand households that would be willing to do that. Plus you would be opening up the market world wide and not just stuck in states that carry root on cable. The only detriment is that it might make it harder to draw new fans in and lose a bit of viewership from the casuals out there.
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Re: ROOT Sports Streaming Service
Also I am not sure how advertising revenue is distributed currently but If they streamed directly they would get 100% of it.
Re: ROOT Sports Streaming Service
What do you think gross margin on this streaming service would be? Keep in mind that aside from Netflix, most streamers are losing money.Captain 97 wrote: ↑Wed Dec 06, 2023 6:58 pmIf you can trust the Interwebs, The M's currently make about 45 Million a year from Root Sports. If they were to ditch cable and go straight streaming for say $20 per month, some back of the napkin math tells me......
$20 Monthly fee = $240 per viewer.
$45,000,000 / $240 = 187,500 viewers.
Between all the Mariners, Kraaken and Blazer fans I personally think it would be really easy to find a couple hundred thousand households that would be willing to do that. Plus you would be opening up the market world wide and not just stuck in states that carry root on cable. The only detriment is that it might make it harder to draw new fans in and lose a bit of viewership from the casuals out there.
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- Posts: 3057
- Joined: Mon May 06, 2019 9:23 pm
Re: ROOT Sports Streaming Service
If the revenue is the same I doubt the margin would change much. They are already paying for all the production with Root.
Re: ROOT Sports Streaming Service
Agree. Here is a prediction. At the end of the off season they announce the switch from Comcast to streaming maintaining their revenues after cutting payroll with no chance to increase it until the trade deadline.Captain 97 wrote: ↑Wed Dec 06, 2023 9:01 pmIf the revenue is the same I doubt the margin would change much. They are already paying for all the production with Root.
dt
Re: ROOT Sports Streaming Service
Netflix has gross margin of about 39%, which they've achieved through phenomenal growth. Probably, you should assume that the best case scenario for something like ROOT would be a lot less than that, going on it's own as a streaming service. Frankly, I don't think it's even realistic. It would cost hundreds of millions in start up capital just to get off the ground. What's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.Captain 97 wrote: ↑Wed Dec 06, 2023 9:01 pmIf the revenue is the same I doubt the margin would change much. They are already paying for all the production with Root.
Re: ROOT Sports Streaming Service
ROOT is already available on FUBOWhat's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.
Re: ROOT Sports Streaming Service
Yes, they are. I'm saying we may see ROOT on other, similar services as well, like YouTube TV and HULU TV.tehmc wrote: ↑Wed Dec 06, 2023 9:50 pmROOT is already available on FUBOWhat's more likely is to start seeing ROOT available as an add-on to more services like FUBO, and more pressure on those services to be cost competitive. We might also see MLB add some sort of package where you could pay for just your local team.