Broadcasters, Nets Brace For Sports Fee Surge
Higher retrans, affiliate fees could cover costs, but may price poor homes out of sports-heavy networks
The analyst wondered if higher sports fees could start a chain reaction: higher retrans fees could mean higher pay TV bills, possibly pushing poorer homes and non-sports watchers out of the bundle and leading to even higher pass-alongs to offset customer declines.
“In the long run, we think this will create a world where the traditional bundle serves only wealthier sports fans while non-sports fans seek OTT options like Netflix, Amazon, Hulu Disney+ and HBO Max,” Nathanson wrote.
