About how they will not stop PPV even if it prevents some fans from going to the games because they make more money from PPV than they would if they stopped PPV and some additional fans went to the game, JD said:
"So when we're in financial tough times and we're running a deficit, why would I do something (stopping PPV for a game or season) that lowered our total revenue? It wouldn't be a financial plus for us." (HSA)
HSA Note: "UH athletic director Jim Donovan counters that with the total PPV revenue, more money is brought in through the service than if PPV were halted and all seven home games last season had instead sold to capacity at 50,000 -- or 13,175 higher than the actual 36,725 average tickets distributed (32,404 turnstile). UH estimates $1.76 million was left on the table in unsold ticket revenue in 2009, vs. the $2.47 million PPV brought in that year. Donovan equates it to overselling the stadium by about 3,000 people every game."
Asked about the impact on the game of having a larger crowd that can make more noise and intimidate opponents, JD said:
"My personal opinion, the last times I've been there, the 36,000 to 40,000 -- I think we had 40,000 for Navy and 40,000 for Wisconsin (issued) -- they were as loud as some of the 44,000, 45,000 crowds that we used to average in the late 80s and early 90s. And it sure isn't a lack of being vocal. The Navy game, the crowd was phenomenal." (HSA)
About how UH is close to selling out the USC game even though fans can watch it for free on TV, KFVE GM John Fink said:
"If that were the case, why would (UH) be selling out games that are live on ESPN that is free TV? Obviously it's because of the game or against a certain opponent. I think you need to look at the games themselves, you need to look at the weather, you need to look at the records of the opponents. You need to look at whatever else is going on around town, rather than making blanket statements about pay-per-view's effect of this." (HSA)
HSA Note: "Another point made is that PPV reaches a segment of the population that wouldn't or couldn't go to the stadium, anyway: the elderly, disabled, or people who work Saturdays."
About how he he wants people at the games and mentions upgraded halftime shows, family ticket packages and overall lowered ticket prices (average of about $20) as reasons to go, JD said:
"There's nothing like being there." (HSA)
About how he hasn't been to a game at the stadium in 15 years and considers the PPV setup "perfect" for him, John Yeh (who has gone to the same house to watch PPV games for the last few years with JJ Johnson, Tony Manzo, and 15-25 other people) said:
"If they didn't broadcast it ... possibly (I'd go back). Not so much the opponent ... just the traffic, and the whole process of a day. It's a long day." (HSA)
About how he considers no live TV a "deal breaker" on watching UH, Johnson said:
"Not only the convenience of having friends, but food, and Hi-Def TV. So it's a little bit more closeness to the game than the stands." (HSA)
About how he hasn't been to Aloha Stadium since PPV began but he would go back if he couldn't watch it live on TV, Manzo said:
"Yes, if there's no pay-per-view, yes. (But) it's confusion, you know? You go there, a lot of walking, the parking ... this, this is beautiful, you know?" (HSA)
When a University of Utah official asked then-AD Stan Sheriff about how much UH's local TV broadcasts were worth, Sheriff took out a gold credit card from his pocked, tapped it on the table, and said:
"It (local TV) is golden for us." (HSA)
HSA Note: "But as last year's sharp decline in pay-per-view receipts suggest, no longer should UH take what has become one of its largest sources of nonticket revenue for granted. No more can it sit back and just wait for the checks to roll in without regard to the product it puts on the field and court. Last year, for the first time in its eight-year experience with pay-per-view, revenues dropped by double figures. According to UH, unaudited revenues were approximately $3.4 million, down approximately 15 percent from 2008. While UH's share of the rights fees slid only 4 percent to $2.47 million due to a renegotiation of provisions of the contract that placed more of the up-front burden on its partner, Oceanic Time Warner Cable, the results were both significant and eye-opening."
HSA Note: "UH's current contract with Oceanic is open to renegotiation if the school's three-year rights fee total hasn't hit at least a $7.5 million threshold by the end of this year. That shouldn't be a problem but, then, few expected the depth of last year's dip, either."
HSA Note: "Then, there is the issue of who UH plays. Witness individual pay-per-view sales of just 396 for the football game with Central Arkansas last season."
HSA Note: "When UH's local television rights were awarded in 2008, Oceanic Time Warner Cable supplanted KHNL/KFVE as the primary contractor, taking on the bulk of a $2.3 million annual payout to the athletic department. Included in the six-year contract is a three-year agreement that allowed KFVE to retain broadcast rights to UH events. KFVE is entering the final year of that period, referred to in the contract as the "transition term." "
Looking forward to having Oceanic take over the production of the events starting in 2011-2012, Oceanic VP for Operations Norman Santos said:
"We're excited about that opportunity, but at the same time I'm a little bit nervous because there's a standard that's been set and there's an expectation. So I want to make sure we not only meet but maybe exceed the expectations of the viewing audience. As a producer it gives us the ability to gather ideas and create something new. I think that's the challenge. ... I think it's an evolution and not a revolution." (HSA)
About how the TV contract includes a window for negotiations (10/1 to 2/28) between Oceanic and KFVE for KFVE to possibly extend its role as a subcontractor for the final 3 years of the TV contract, KFVE GM John Fink said:
"We hope we can continue to be involved in the production going forward. We have a good partnership with Oceanic and the university and those are discussions we'll have later on this year." (HSA)
About how Oceanic and KFVE will decide how produces the games, JD said:
"(KFVE's role) could be extended or not extended, but that's up to the primary contractor, which is Oceanic Time Warner. When we signed the contract we knew it was a possibility. There were several possibilities, they could after three years ... produce it themselves, they could continue to work with KFVE or they could look to some other company to produce it." (HSA)
About how nothing has been decided yet for 2011, Santos said:
"I don't think we've ruled anything out yet. There's an opportunity for a mix of over-the-air and cable broadcasts. What we're planning to do is get into more substantive discussions once we got this season under way. It's a big task, but the first task is to be sure we're all on the same page as far as the look and feel." (HSA)
About how fans want to attend games when UH does well and will just watch them on TV if UH struggles, JD said:
"TV is an amplifier. When things are going good a lot more people are going to come out to see them in person. When teams aren't doing well, people will stay home and watch them on TV. That's typically what we've seen." (HSA)
HSA Note: "KHNL/KFVE began televising UH sports in 1984, and fended off a challenge from Oceanic in 2005, increasing its annual payout from $700,000 to $1.75 million over a three-year deal that expired in 2008. UH, Oceanic and KFVE are in the second year of a contract in which Oceanic pays UH $1.8 million annually with KFVE contributing $500,000. Starting next year, Oceanic takes on the entire $2.3 million payout plus production costs, which Santos estimated at "north of $10,000" per game."
About how it costs more than $10k to televise each game and PPV and commercials need to bring in a lot to make the games profitable, Santos said:
"Pay-per-view certainly is still driving the bus, but advertising has to pay for the production and those games aren't cheap." (HSA)
HSA Note: "Oceanic implemented new technology in its high school sports coverage and UH pay-per-view events, adding high definition and interactive features in recent years. Santos said the flexibility of cable could allow for more pre- and post-game coverage, greater access to replays of games, perhaps even a station dedicated to UH down the line. Along with the television contract, UH receives $442,666 annually in a three-year radio deal with KKEA-1420 (which also expires next year). The new contracts contributed to UH breaking the $3 million mark in media royalties in the 2009 fiscal year."
HSA Note: "The current deal provides UH a steady revenue stream, while Oceanic keeps a percentage of pay-per-view sales. Ten percent of PPV goes to UH for revenues between $2.3 million and $2.7 million. UH receives 20 percent if revenues top $2.7 million. According to figures provided by UH, the arrangement contributed about $2.5 million to the athletic department in 2009 and about $2.47 million in the 2010 fiscal year, which ended June 30."
About how the TV contract is working for everybody right now, Fink said:
"At the end of the day, we're trying to make it work for UH, for the sponsors and for the fans, and right now the formula seems to be working quite well." (HSA)
Highest single game PPV sales (including season subscribers and individual game purchases)
Fresno State, 2007 13,986
New Mexico St., 2007 12,234
N. Colorado, 2007 12,170
Purdue, 2006 11,569
San Diego State, 2002 11,269
Highest individual game PPV purchases
Fresno State, 2007 5,149
San Diego State, 2002 4,485
Purdue, 2006 4,113
Women's Volleyball
2005 1,552
2006 1,308
2007 1,070
2008 441
2009 854
Mens Basketball
2005 1,083
2006 528
2007 142
2008 142
2009 123
Season Package sales
2002 6,784
2003 8,897
2004 8,997
2005 7,809
2006 7,456
2007 8,837
2008 8,318
2009 7,347
Individual buys average per game
2002 3,052
2003 1,614
2004 1,214.9
2005 1,007.7
2006 2,185
2007 3,040.5
2008 1,727.3
2009 890.6
Commercial purchases
(restaurants, bars, etc.)
2002 80
2003 118
2004 117
2005 143
2006 156
2007 205
2008 244
2009 233
http://www.staradvertiser.com/sports/sportsnews/20100704_changing_channels.html
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