The broadcast companies that just renewed their deals with the NFL for broadcasting rights through 2022 are expecting ad sales to offset the rising cost of the rights.
This might be a mistake in the future if, say, ads drop:
"We see the broadcasters' decision to renew their NFL rights as an acknowledgement of the economic benefit the NFL is having on their business. The earnings impact is modest and long-term cost certainty a positive.
"The benefits these rights have already accrued to the economics of these networks - namely, rapidly rising re-transmission fees. Even if these two events do not happen, the pressure to garner increased carriage fees by ESPN [which extended its rights deal earlier this year], CBS, NBC and Fox and limit cost escalation elsewhere will be significant."
Also, this further moves the trend towards only finding profitable sports programming when it's exclusive.
Which might mean that the consumer will have to pay for premium access to certain things they normally get for free right now!
[Image via AP Images.]