Blackout (broadcasting&attendances) Flashcards
What is centralised selling? Who uses it?
All clubs in the league sell their media rights collectively through the league. Cartel?
The prem do this.
How does the prem auction its rights?
What can it result in?
First-price sealed bid
Winners curse to the benefit of the league.
Brief overview on Prem’s 2019 auction
Offers 7 packages/slots
By rules there has to be more than 1 broadcaster
Talk about the Prem’s 2025 auction.
- 200 —> 270 games (still not 380)
- blackout remains
- sky has 4/5 packages. TNT has rest
Talk about how the prem divvies domestic TV deal. Controversial?
50% equally shared
25% facility fee
25% league position
Big 6 want greater shares for themselves
What’s important to consider when thinking about the relationship between stadium and TV sports?
Are they complements or substitutes?
dA/dPs
How does attendance change with TV subscription price.
What’s an issue with this cross-elasticity measure?
Data for subscription price is very hard to ascertain. Differs by household and bundle
What is the blackout rule?
What was it designed for?
Bans live team sport coverage between 2:45-5:15 PM on Saturdays
Designed to protect lower division attendance and revenue.
How can we test whether lower division attendances would fall if blackout was removed?
We can gather info from other countries
We can look at the effect of UCL broadcasts on EFL attendances
What does the Wallrafen (2020) paper look at?
Impact of live broadcasting on stadium attendances in German 3rd division.
How does Wallrafen control for selection bias in his 2020 paper?
2-stage: he has an OLS equation to estimate demand
He also has an ETR (exogenous treatment regression) that accounts for selection bias from certain games being chosen for broadcast.
Comparing these we see that OLS suggests positive impact on attendance from broadcasting games while ETR reverses this
What are the main findings from Wallrafen (2020)?
- ETR model suggests that broadcasting a game free-to-air reduces attendance by 34% (even more so for midweek games)
- Impact of concurrently played Bundesliga 1 games is rather imprecise. Very slight negative effect
Evaluate findings from Wallrafen (2020)
- does broadcasting break into new markets increasing LR demand
- evidence of postponed demand (doesn’t over compensate for lost revenue from last game)
- generally not good for lower division teams.
What were the findings from Adam Cox (2012)?
- For prem teams, there’s a negative effect of broadcasting teams’ games in gate attendance
- This is worse for smaller clubs
- However, broadcast facility fee outweighs the loss in gate revenue.
Evaluate the findings from Adam Cox (2012).
- Restrictions in quantity stemming from collective agreement is detrimental for everyone.
- Fans, broadcasters and clubs would be made better off by increasing the number of games shown live.
