The collapse of interest in the NFL among sports fans is having a ripple effect. It’s even got some people on Wall Street worried.
The Hollywood Reporter has the story:
NFL TV Ratings Slide Worries Wall Street
CBS, ESPN, Fox and NBC will generate about $2.5 billion in NFL advertising revenue this season, but a 10 percent shortfall could translate to a $200 million cut in earnings, an analyst estimates.
NFL’s ratings woes continued in Week 2, and Wall Street is taking notice, given there are fewer excuses for falling viewership than there were a year ago when Hillary Clinton and Donald Trump were distracting TV-watching Americans.
While NFL games remain some of the most-watched content on television, ratings slid 12 percent in the NFL’s opening weekend, with many blaming Hurricane Irma. But without dramatic weather, the second weekend was off 15 percent year-over-year. This comes after an 8 percent ratings slump last season.
Guggenheim Securities analyst Michael Morris said he had been optimistic heading into the new season because audiences would appreciate some changes, including fewer commercial breaks and allowing players to creatively celebrate touchdowns. Now, though, he says, “early results do not support this optimism.”
Jefferies analyst John Janedis figures CBS, ESPN, Fox and NBC will generate about $2.5 billion in NFL advertising revenue this season, but a 10 percent shortfall could translate to a $200 million cut in earnings.
That;s huge. No wonder people are concerned. Of course, it was all avoidable.