NFL Excuses Run Out After Ratings Declines Continue

[Eleazar]

NFL's Litany of Excuses Runs Out After Ratings Fall for Second Year

By Lucas Shaw
Bloomberg.com
November 2, 2017, 11:30 AM CDT



TV networks are running out of excuses for the dwindling popularity of the National Football League.

They blamed the election for ratings declines last year, and hurricanes for a soft week one in September. Protests during the national anthem, and President Donald Trump’s criticism of the league, have faded from the headlines.

Advertisers are starting to believe a different explanation: the viewers aren’t coming back. Audiences are down an average 7 percent from a year ago through the first eight weeks of the season, excluding last Monday. That’s on top of a decrease of about 8 percent last season that spurred numerous changes in the broadcasts, from shorter commercials to better matchups earlier in the year.

“There’s just not as many people watching TV the way they used to watch TV,” said Jeremy Carey, managing director of Optimum Sports, a sports marketing agency. “It’s going to be an issue for advertisers when they can’t reach a large-scale audience the way they have.”

With CBS Corp., 21st Century Fox Inc. and Walt Disney Co. set to report earnings in the next few days, analysts are bound to raise questions. These companies have used the popularity of the games to extract additional fees from cable operators, promote other shows on their networks and sell lots of commercials. Pro football games drew about $3.5 billion in ad spending last year, including the postseason, according to SMI Media Inc.

Media companies have spent billions of dollars on the right to air football games, which had been immune to the erosion of viewership for other TV programming. Audiences for TV networks have diminished for years as the growing popularity of online alternatives Netflix and YouTube and the availability of most shows on-demand have reduced the appeal of dramas and comedies. Live TV, like sports, was supposed to be immune, but that theory looks highly questionable now.

Ratings for the NFL suggest the same societal trends are now affecting the league, even if the declines aren’t as dramatic. The drop in game viewership ranges from 5 percent for NBC’s “Sunday Night Football” to 11 percent for the CBS Sunday package. “Monday Night Football,” on Disney’s ESPN, has attracted more fans this year than a year ago, but the numbers are still down from 2015.

Viewership of the four main broadcast networks fell 8.7 percent last year, and 12 percent among adults 18 to 49, an important demographic for advertisers.

CBS’s 11 percent slump for NFL games is the steepest of the networks. Its parent company, which reports earnings after the close Thursday, is more vulnerable than rivals to the trend because the vast majority of its earnings come from the broadcast network. The declines at CBS reinforce a complaint that has gotten louder and louder in recent weeks: The league got greedy in adding the Thursday night game on broadcast.

Reserving top games for Thursday night robbed other time periods of good match-ups. After a nosedive in ratings at “Monday Night Football” last season, the league has scheduled better games for that time period, further damaging Sunday afternoon.

“Ratings declines on both general entertainment and NFL programming could be the single biggest point of focus for investors this quarter, and we’re not sure what media companies can say about the health and tone of the ad market to assuage fears,” Steven Cahall, an analyst with RBC Capital Markets, wrote in a note last month.

Viewership is dropping fast among people under 54 -- a key demographic for advertisers -- and even faster among those 18 to 34. Audiences for games on CBS, NBC and Fox have slid at least 10 percent among that younger cohort.

Advertisers aren’t abandoning the NFL, one of the only places they can still reach more than 10 million people at once. But they are growing concerned. John Schnatter, who appears in TV spots on behalf of his Papa John’s Pizza International Inc., laid into the league on a conference call this week, blaming the ratings for his company’s slow revenue growth and calling for the league to put an end to player protests.

Networks and other advertisers identify a wide range of reasons for the NFL’s struggles. The league has overexposed itself by making highlights available on Facebook, YouTube, Twitter and Snapchat. Identifiable stars like Peyton Manning and Aaron Rodgers have either retired or gotten hurt. The quality of play has deteriorated. Player protests and concussions have driven away some fans.

Some executives argue viewership of the league has still improved over the long term while dropping for every other show. Yet the amount of time people have spent watching football this season is at the lowest point since 2011, back when there were fewer televised games, according to Mike Mulvihill, Fox Sports’ head of research.

“The cumulative effect of everything happening in the world at large is having an impact on NFL viewership,” Mulvihill said. “ The league was defying the laws of gravity.”

[DaneMcCloud]

Originally Posted by Bowser

I suppose in towns with perennial winners (the few that there are), the price is accepted because, you know, they're supporting perennial winners. For the other 85% of the league, it just isn't worth the price you pay.

I think that it depends on the team, the facility, the price, etc. I've been to Rams games at the Coliseum and many Chargers games at the Murph. Both were extremely easy getting in and out of the parking lot, the stadium, etc.

Years back, we went to the Chiefs-Jets game at the Meadowlands. We took a train from Manhattan to a bus station, in which the bus dropped us off in the parking lot. Grabbed the bus on the way back to Manhattan and it was a super easy and fun experience.

Originally Posted by Bowser

To apply it to Arrowhead for me personally, once they changed the rules of tailgating, they effectively killed my desire to drop big coin to go watch their product. The tailgate was just as much fun as the game for us since the product on the field when I had my tickets wasn't worth a shit.

I've been hearing this more and more from friends that not only live there but friends that have flown into KC for a game. $60 dollars for Game Day Parking, too many drunks and a 60-90 minute exit time from the stadium.

I think that this is a local KC issue and not one experienced by every team in the league.

Originally Posted by Bowser

The investment is not worth the return for me anymore, especially considering I can go have fun at a number of sports bars and spend less money, or just stay at home with the big screen and Red Zone.

The NFL is finally embracing technology and realizing that the Game Day Experience is generally much better at home than at the stadium, which is why they began experimenting with Live Streaming this year with Amazon and signed the Verizon deal.

Stadiums generate very little revenue compared to that of TV and Streaming Deals and it's up to each individual team to market their product to the locals.

If the Chiefs begin to see a significant drop in attendance while their product on the field remains strong, it's up to Mark Donovan and associates to make changes to the pricing structure that's more appealing to the fans.

[ILChief]

Originally Posted by Best22

Pats fans hate Gooddell and the league because he suspended their quarterback. They openly mocked him during the Thursday night season opener

They are stupid. Every controversial call goes their way. Tuck rule, that BS jets "fumble" this year, the Steelers "incomplete pass" last week. The league goes out of is way to coddle and protect the pats. The four game suspension for Brady was just a PR stunt. Coincidence they played four garbage teams during his suspension.

[tk13]

Originally Posted by jaa1025

I can't, for any reason, understand the extension.

Go visit the thread that has the Forbes team values in it, and you'll get your answer.

[cooper barrett]

In 10 years the owners will have replaced players with autonomous players and the salary cap will be a another issue. It will be limiting R+D $ in the future.

Gamers and software engineers will run the league and computers will draw up stupid trick plays and endzone dances making Andy an antique.

Finally Junior will be able to move out of his parents basement and millionaire thugs won't be beating the shit out of their wives and GFs. Colleges will go broke without their football revenue, and CTE will be a thing of the past.

Yeah the NFL stands a chance at survival but I see teams wildcating for revenues instead of sticking with the program as we know it.



Madden (EA Tiburon/ EA Sports) is going to make a ****ing killing as they had it figured out for years and has just been waiting for technology to catch up. They are so slick they have colleges doing the research for them

[Why Not?]

Originally Posted by DaneMcCloud

With legalized Sports Gambling coming down the pike, the NFL will be become more popular than ever.

I can't wait for this day to arrive. Vegas and the Indian communities out here will fight this to the end(at least in AZ). So stupid we have to go to a neighboring state to lay legit live action.

[Bearcat]

Originally Posted by chiefzilla1501

-oversaturation including Europe games nobody wants
-overpriced tickets and parking
-absurdly bad TV deal that restricts access unless you own a dish, while other leagues are expanding local and streaming
-incompetent owners like Mike brown and Jim irsay who will never be replaced. Largely because revenue sharing allows incompetent owners to still profit handsomely
-disinterested owners with no fresh ideas on improving the game experience (terrible halftime shows, in game music, etc...)
-injuries have made several teams unwatchable
-relocation mania to an LA market that struggled big time with attendance with 2 teams
-over emphasis on penalizing defenses. And too many flags in general
-horrible marketing. Very few marketable superstars

The NFL was on the decline. The anthem reaction was the straw that broke the camels back. If the NFL was a watchable product, the reaction wouldn't be nearly as severe. In most of the above cases, the owners and Goodell chose profits over the fan experience.

Originally Posted by Why Not?

Garbage quality of play. Every week you have maybe a couple of good games. Maybe. Games are over officiated and several major rules/interpretations are unclear to most of the players, let alone the fans. Several points others have made about stale coaches and players. Bad play calling that most fans could see backfiring(4th and 1, "let's go for it!" Runs up the middle for loss of 1).

Yep. I've had a couple of the Chiefs' prime time games on in the background, but the Steelers/Patriots has really been the only one of real interest, and the last drive was completely predictable and they also managed to **** it up.

I usually tune in during the 2nd round of the playoffs or the conference championship games when the few teams worth a shit are playing, but.... meh.

[GloryDayz]

Originally Posted by Best22

Pats fans hate Gooddell and the league because he suspended their quarterback. They openly mocked him during the Thursday night season opener

Everybody hates him, I'm not sure that means Pats fan aren't happy with the league itself.

[GloryDayz]

Originally Posted by beach tribe

I think people are sick of hearing about the Cowboys and all the ways their 7% chance to make the playoffs will unfold.

Seriously, though. People are sick of hearing the story lines about the media darlings and watching the same handful of teams have any shot a a ring.

95% Cowboys fans don't give a shit about football unless their team is championship caliber.

Perhaps our problem is too many people care even if the product sucks. With an owner that's 99% content with just the profits he'll get for just being an owner (so he can fund other things), the lack of outrage just enables him all the more.

[tmax63]

[QUOTE=DaneMcCloud;13303236]False


$400-500 per person? What?



I guess I don't know who the average fan is anymore. I know I can't really afford to drop that kind of money for a product I can see better on the TV.
I'll clarify, $4-500 for 2 people. I don't go to events like a ballgame by myself routinely. Mama would be pizzed if I left her at home.

[chiefzilla1501]

As I've said before, the owners need a shakeup. The revenue sharing deal while it may protect small markets, it also protects shitty owners like Irsay and mike brown. Too many dinosaurs in the league. Every owner runs their team like a business, not like an entertainment option. Ideally, you'd have a few owners who try some crazy shit, another owner sees it works and copies it. Sadly, the biggest recent tech changes in the NFL were borrowed from the xfl, not from their own people.

[chiefzilla1501]

[QUOTE=tmax63;13303642]

Originally Posted by DaneMcCloud

False


$400-500 per person? What?



I guess I don't know who the average fan is anymore. I know I can't really afford to drop that kind of money for a product I can see better on the TV.
I'll clarify, $4-500 for 2 people. I don't go to events like a ballgame by myself routinely. Mama would be pizzed if I left her at home.

I don't know who the average fan is. But theres no doubt that that is a significant chunk of change for a lot of fans. Especially if you include parking and concessions. Id also guess that a lot of these fans are diehards.

[RippedmyFlesh]

Cheifs fans would love buffalo's setup. An exit off highway not city driving to get to the stadium. Easy in easy out for tailgatters. On a bus you will wait in traffic a while but in your own vehicle isnt bad at all.

[cooper barrett]

I am surprised they haven't banned tailgating as we know it. What,you don't think Carl(the ass) Peterson didn't consider it? I know for a fact he walked through the lots and saw money begging to be separated from fans.

It's probably a "scared to do" thing but can teams control their total parking areas to that extent?

Will we see beer and food trucks parked in the lots and be forced to purchase all alcohol from them or risk being ejected and loose your seat?

[GloryDayz]

Originally Posted by cooper barrett

I am surprised they haven't banned tailgating as we know it. What,you don't think Carl(the ass) Peterson didn't consider it? I know for a fact he walked through the lots and saw money begging to be separated from fans.

It's probably a "scared to do" thing but can teams control their total parking areas to that extent?

Will we see beer and food trucks parked in the lots and be forced to purchase all alcohol from them or risk being ejected and loose your seat?

I doubt it, but I'm sure the Hunts think by not doing so they're being generous.

And a Christmas eve game is always hard to sell out, but I got tickets for under $50, there in a great viewing location, and there were some that were $13. I can do that a couple of times a year. And it's ONE HELL OF A LOT LESS EXPENSIVE that what I was spending for tickets from 2001-2007 when I was a STH. With my hockey team's schedule the per-game route is shit-tons better.

[cooper barrett]

I honestly think it's more to do with contracts with foodservice vendors than anything. Who wants their people, trucks, grills out in the elements when they have a captive audience inside. With the tents they have somewhat done the same thing on a smaller scale...