ice99 wrote: ↑Thu Dec 21, 2023 2:13 am
ice99 wrote: ↑Mon Dec 18, 2023 4:24 pm
They should have some agreement but it's more complicated than that. It depends on the number of people that decide to cut the Comcast cable.
I am using these numbers to make the math easier.
Let's say that Comcast makes a gross margin of 20%, and that they charge people $208.50/mo. Let's also say Comcast has 1 million subscribers.
They would hafe a gross margin of $41.7 million/mo. If they raise the rates so that they lose 10% (100,000) of their subscribers. Their new profit margin would be 0.9 million times ($200/mo. times 20% = ) $40/mo. or $36 million/mo. They would lose $5.17/mo.
Let's also say that 0.5 million subscribers get an add-on. Comcast would have to make a gross margin of 5.17 million/0.5 million or $10.34/mo. to make up for that. So their gross margin for RSNW would have to go from 20% of $8.50 = $1.70, to $10.34 per month.
I suspect a RSNW price increase prompted Comcast to move them out of the basic tier. Let's say $6.80/mo. to $10/mo. Then Comcast would need to get $10/mo. plus the $10.34/mo margin to make up for that.
RSNW probably gives some commercial time to Comcast, but probably a minimum. The season is 6 months plus another month for spring training. The $6.80 per month times 7 months times 1 million viewers is only $47.6 million. RSNW needs to have 3 times that much revenue to pay the M's $120 million per season. So another $13.60/mo. generated by tv ad revenue.
At $13.60/mo., with about one million viewers, and 27 games per month, that's around a half million ad revenue per game. If they lose viewership, they'll lose ad revenue too, compounding the problem.
There are about 10 different cable providers. Comcast is the largest but others come close. Comcast has about 17M, Charter has 14.5M, Dish 7+M, Verizon/Fios 3.6M, At&t 3.5M, Cox 2.9M etc, etc. The Mariners need to do a good deal. Get the widest exposure possible. Offer the channel to Charter, Dish, etc, for 5, 4, 3$. And go from say whatever percentage of 17M subscribers you get the monthly charge for the channel and revenue from add revenue. The Mariners did the same f-ing stupid ass shit that the PAC12 tried to do when they turned down 30 or 35M/school from Fox? And countered with 50M and are now defunct. Learn the F-ing lesson M's I read where Stanton was like, "I am increasing revenue streams to then in turn eventually reinvest some of our profits in the team". This explains the purchase of Pyramids pricey downtown stadium location, the dumb ass 50-million blown for renovating luxury "Jack Nicholas experience" BS. They thought they could just go fk-all and raise rates on Comcast and got "Pac-12'd"
The greedy actions of Stanton and Co. are the direct cause of their downfall. They wasted at least 2 options to actually add to this club and compete for the crown especially last year. With the emergence of Woo-Miller in the rotation which replaced Ray's & Marco's injury and Flexen's flop. I mean they didn't need a Judge level add. Just go get JD Martinez for the 23 club: Belt, Bellinger, etc
It is simply absolutely maddening that this team appears to be in a position where the decision makers are basically like profit, profit, profit, in an era and a period of development where they have a killer staff, and BP, and several really good position players they just needed to add a bit. This is no longer the case. Throwing away two 90 RBI guys 3 other above average hitters- solid back-up or partial year starters is madness.
