VIACA - Fox's NFL Deal May Be A Bridge Too Far; Streaming Transition Could Leave Company With Losses
- Fox has re-upped for another 11 years with the NFL, along with its other TV partners, for as much as $1.2 billion per year more above current rates.
- Losing Thursday Night will only save $400 million, the broadcast segment only reported $430 million in EBITDA last year, so it is obviously planning on recouping the cost through fee hikes.
- Pay-TV operators are increasingly reluctant to grant such fee hikes, and consumer pay-TV defections may only accelerate if Fox and others attempt to impose them.
- With the entire company only reporting $1-1.5 billion per year in profit, Fox faces risk if it is unable to recoup the cost, making this NFL deal considerably more risky than past ones.
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Fox's NFL Deal May Be A Bridge Too Far; Streaming Transition Could Leave Company With Losses