Now More Than Ever, Networks Need A Big Score From NFL Broadcasts

Bottom line: No NFL = trouble for TV networks.

Why this matters: The NFL accounted for 41 of the 50 most-watched TV programs in 2019 and is a significant driver for advertising revenue.

Quote from John Kosner – President @ Kosner Media:“It’s practically the only thing on the minds of the networks. If you lost an NFL season, you’re looking at a financial hemorrhage.”

Advertising revenue by the network from NFL (% of total) according to iSpot:
1) Fox – $2.0B (40%)
2) CBS – $1.5B (25%)
3) NBC – $1.5B (20%)
4) ESPN – $500M (20%)

Advertising revenue by league:
1) NFL – $5.5B
2) NBA – $1.5B
3) MLB – $700M

Big question #1: Does the NFL need fans in the stadium to survey financially?

Quick answer: No. Stadium revenue accounts for ≈ 30% of the leagues $15B in revenue.

NFL average TV ratings for the regular season (YoY change):
1) 2015 – 18.7M
2) 2016 – 16.5M (↓ 12%)
3) 2017 – 15.0M (↓ 9%)
4) 2018 – 15.8M (↑ 6%)
5) 2019 – 16.5M (↑ 4%)

Quick math on NFL advertising revenue YoY (2018-19):
1) Viewership – ↑ 4%
2) Ad spend – ↑ 10%
3) # of spots – ↑ 2%
4) $/spot – ↑ 9%

More #1: If NFL can pull off playing 2020 season despite hurdles, expect the world to watch like never before

More #2: How NFL is set, if needed, to shake up its schedule

More #3: Meet the Magician of NFL Broadcasts

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