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Why the New NBA Deal Is So Weird. Plus, How Sports Rights Actually Work.
Plain English with Derek Thompson
Value of Subscriptions and Affiliate Fees
In the realm of media economics in 2024, the focus has shifted from day-to-day ratings to the value of subscriptions and affiliate fees. Instead of falling to the level of ratings in traditional advertising models, companies now rise to the level of the sport's popularity. The NBA playoffs' high value stems from being a must-see event, ensuring significant revenue from cable operators. Events like the Peacock Candice City Chiefs game draw subscribers, with 70% likely to stay for six months, showing the lasting value of premier content. The key metric now is not just viewership numbers but also the passion and commitment of subscribers, as seen with successful streams like the Champions League on Paramount Plus.
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