Sometimes what is great for the individual, is not so great for the company. When TV was invented and there were 3 networks ABC, CBS and NBC for better or worse people watched those networks and advertisers were delighted because they could segment the population and aim their advertising at a specific audience, but with enough appeal for a general audience. As time went on more TV channels appeared then was the rise of Superstations tied to satellites. This had the effect of making fans of sports teams from thousands of miles away, because the Superstation carried the local team – typically Atlanta and Detroit. The rise of the internet brought streaming services and now as individuals we have many choices. The choice is good for the individual, but there are many brands which advertise in search of a general audience. For a time, the salvation was sports broadcasting because sports shows are live TV. Sports TV was very profitable, which is the reason why professional sports teams rose in value or the TV contracts with the leagues became larger. However, as sports was the profit leader, competition came into the game and while sports TV is very important, the profitability for the broadcasting companies has fallen.

In an article from Reuters, Fox Corp, Disney’s ESPN and Warner Bros’ Discovery are teaming up to deliver a sports streaming service to capture younger audiences and to save costs.

The service will be an app on your phone and aimed at those that never had TV. With the internet, there are less reasons to bring TV into your home or through a cord. There are many options or cord cutting which means cancel the TV subscription. The app to be unveiled in fall of 2024 would have a new brand and an independent management team.

Linking to dividend paying stocks, all industries go through changes and the best ones can adapt to it. In the case of broadcasting companies, while the public may focus on the content, the profits are made in advertising rates charged. The greater the popularity of the show, the higher the rates of advertising or supply and demand. With high rates, there will be competition because of improved technology but a platform still has to have verifiable viewers that will tend to spend money on products and services. Often times, large profitable companies can adapt because they can either buy the new companies or throw money at the problem to find the elusive solution. Sometimes the solution is out of reach and shareholders will say what were they thinking? and find alternatives.

There are more questions than answers, till the next time – to raising questions.