NHL's Video Streaming Service is a 'Deal' If You Hate Your Money
Today, NHL.com announced the release of a "Day Pass" (that costs an absurd $19.95) for its wildly-unpopular-but-relatively-good-quality streaming service, Gamecenter. This comes a few days after the uninspiring headline that declared "Gamecenter at its lowest price of the season!" The $80 subscription may have been considered a relatively good deal back in October, at the beginning of the season, but with only ten games remaining before the playoffs, one would think that there should be a greater discount than 50% (from the $160 that the service costs for the whole year). The service's usefulness, after all, decreases when the playoffs begin, as more games begin to be broadcast on major networks.
But the strangest thing about the service is that Gamecenter costs an additional twenty cents if you purchase it for one day as opposed to one month, which begs the question: Why did the NHL release a Day Pass at all? The layout that the Gamecenter website uses looks like the scam, and the price that it has adopted is a scam. Not that twenty dollars a month is much more reasonable, when compared to other entertainment options, but twenty dollars a day is unforgiveable. After all, most of the games that happen in a single day start within a few hours of each other, and so at most you're paying for five or six hours of hockey.
Gamecenter allows you to watch four games at once, but I cannot really imagine paying attention to more than one hockey game at the same time. So, at around four dollars an hour, it seems like the only way you could be more frivolous with your money is to go see The Haunting in Connecticut, a movie whose trailer asks, "Why do bad things happen to good people?" and whose audience leaves asking, "Yeah, why, for instance, was I made to watch this crap?"
All of this focus on the NHL and streaming video comes after a slew of cease-and-desist letters were sent to a number of websites that had been hosting or linking to illegal streams, which resulted in the of the most prominent (and profitable) streaming site, atdhe.net, taking down its hockey streams.
In my opinion, the NHL is making the same mistake as the RIAA: they are both using legal action to prolong the use of outdated technology, rather than embracing the technology and innovating their businesses to make money in new ways. The recording industry wrongly equates illegal downloads with lost sales. It simply isn't the case that everyone who illegally downloads an album would've purchased it if they weren't able to steal it. And the same is the case for the NHL -- many people, like myself, are unable to watch hockey games on Cable television because we live in a different area than our favorite team.
This problem stems, in part, from the fact that hockey is one of the least popular (of the popular) sports in America. Hockey games are not available on National networks, except for several games a month (and in most cases, NBC's announcers spend more time discussing upcoming dramas than watching the hockey game). With this being the case, I think that the NHL would be wise to set a precedent for other professioanl sports leagues by streaming all of their games online for free. Most major television networks have all of their shows online, because they can still advertise online just as they do during live TV.
This move could potentially increase NHL viewership, and would certainly help out-of-town fans to see their favorite team's games, and most importantly, it would generate revenue from an audience that will watch streaming hockey wherever it is free. The NHL would be wise to profit from their own free streaming service, which they could easily make the best quality, rather than spending millions of dollars in lawsuits against lesser-quality streams which would be eliminated when people stopped visiting them.
This item was created by a member of this blog's community and is not necessarily endorsed by Fear The Fin.
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13 comments
Comments
It makes perfect sense
when you look at the brain trust running the league. Bettman doesn’t exactly live in the real world.
It takes a big man to cry and it takes a bigger man to laugh at that man. -Jamie Baker
by Lurker Shark on Mar 25, 2009 5:30 PM PDT reply actions 0 recs
Seriously
Just another example of the NHL telling the hardcore fan to go fuck themselves.
When I was a kid I used to pray every night for a new bicycle. Then I realized God doesn’t work that way, so I stole one and prayed for forgiveness. - Emo Philips
Neglectful father of David Quinowski
by marcello on Mar 25, 2009 8:06 PM PDT up reply actions 0 recs
$20 per day?
i’ll just stick with my tv
"It aint over till the fat lady sings." - Not Yogi Berra
by serrapadre716 on Mar 25, 2009 7:07 PM PDT reply actions 0 recs
This sums up quite well why I haven’t purchased the Gamecenter service. I too had seen the “lowest price of the season!” ads and was intrigued. Then I saw how much it costs. Maybe $10- $20 bucks and I’d say sure, but not $80 for the playoffs. On top of the price of cable, that’s way too much. It’d be interesting to see the numbers to see what they make of ads over the air vs what they charge for the service.
Sadly, I don’t think anyone with any sway in the NHL is watching/reading/listening to the fans. There are a lot of great ways they could be working with the streaming sites and bloggers to promote the sport, but instead, they work against us and the game.
iTunes was totally never going to work. I mean, who wants to pay for a song they can get for free, right? We know how that worked out.
resident cartoonist @couchtarts.blogspot.com
by CTGray on Mar 25, 2009 8:40 PM PDT reply actions 0 recs
The absolute most I'd be willing to pay to watch a streaming game
is $5. I don’t care what the circumstances are: If I’m watching it on my computer, I won’t pay a cent more. And the price I’m willing to pay drops off sharply depending on what game it is. Tonight’s Sharks-Hawks game? $3. Tonight’s Panthers-Sabres game? Not worth the bandwidth. $19.95 for all six games today? I’d rather light a twenty on fire.
NHL Gamecenter, and nearly all other subscription-based online services, are absolute, complete, utter, total ripoffs. For a company like the NHL, bandwidth is cheap, especially on the scale they use it. Licensing? They already own it all. Coding and software? You can get it for free. TV-capture? They already have the War Room set up, a five-year-old could patch the feeds into a server. And those servers are probably the only real cost I can think of.
And how much money are they making off this? Let’s assume they have 500 full-season subscribers, at $180 each. And for every day of the season, they get 20 people to buy a day pass. (Obviously I have no idea how accurate these numbers are, but I’m pretty damn sure they’re on the very conservative side). So that’s $90,000 from the subscribers, and about $40,000 for the day passes. At a rate of $10 per MB per second per month, $130,000 can buy 2 gigabytes per second for seventh months. With 520 clients connected, that means they can break even with transfer speeds of nearly 4 mbps per client, 24 hours a day, for seven months straight.
For comparison, a high-quality video feed on atdhe or a similar service runs at about 700 or 800 kbps — a fifth of that 4 mbps. Additionally, an average household DSL or cable internet line probably has never even seen speeds of more than 1.5 mbps.
The prices on Gamecenter do not reflect the cost of the implementation of the service. Nor do they reflect the supply-demand costs of the service, due to the ridiculous economy of scale available with online distribution. The marginal cost to the consumer is insanely larger than the marginal cost to the NHL. Until the price falls to a tenth of what it is now, I will never even consider signing up.
by senor_k on Mar 25, 2009 9:57 PM PDT reply actions 0 recs
I have to admit
I might be shelling out the $160 or so next season for Gamecenter, since I’m 99.9% sure that I’m not going to be in the Bay Area next year (or, for that matter, the next four years) and there’s little chance of me being able to get Center Ice.
IMO, it really depends on the amount you use the product. Only watch Sharks games? That’s about $2/game – a little pricey when you can find free, albeit horrible quality, streams on ustream and justin.tv. But say you watch at least one game a night. That’s over 182 games, which brings the total price per game to less than $1. I usually jump around three or so games a night unless the Sharks are playing – that significantly reduces the amount I’m paying per game. The set-up they have there too is pretty cool, with real-time stats like TOI, shots, penalties, +/- ratings, etc. that a stat-head like me enjoys. Plus, the streams aren’t as laggy and there’s no chance of the channel being switched over to MTV or something like that (true story).
Would I rather it be free? Of course! But the fact of the matter is, professional sports leagues require fans to pay for this kind of service. And as long as the demand is there, the NHL will not make it free or anything like that.
As for the topic at hand – $20 per day is bullshit. The largest number of games any given day can have is 15, so no matter what you’re paying over $1 per game.
by mymclife on Mar 25, 2009 10:43 PM PDT up reply actions 0 recs
Uhh
I was sucked into buying Gamecenter for the entire season. I pay $20. They automatically take it out of my checking account. I should have read the entire fine print or something. I thought it was just from a month to month basis. Not installments. Oh well.
by Lambolus47 on Mar 26, 2009 12:09 AM PDT reply actions 0 recs
The more I think about it
The more I am puzzled about why the NHL (and for that matter any other major sports organization that offer streaming games for a fee) isn’t moving to the micro payment system. Various online games and iTunes have used this with great success. It’s all about the psychology of it. Charge .99 a game, or a buck to make it even. So many people will say “yeah, I can spend a buck” and buy a game. So now it’s easier to impulse buy their service. Great!
Considering the fact that there are 30 nhl teams offering 82 regular season games. If one person wants to watch all of those games (and some might) you’ve just made $2460 of one guy! That sure beats $160.
Yes, I know some people will chose to only watch their team and that’s only 82 bucks, half of what the full season service costs now. But those people aren’t going to be your majority. In all likely hood, most folks will have several games out of their market that they want to watch over the course of the season. Some people love the option of watching four games at once. So make that a special deal. Four games for $3.50 or something. That will add up quite quickly. Even two games for $2 every night for all 82 regualr season games will get you just over the cost of a season subscription.
You also have the added benefit of snagging a good number people who normally would turn to streams. Provide your customers with easily accessible “cheap” high quality streams, and you’ll attract a steady base of paying customers.
Just saying.
resident cartoonist @couchtarts.blogspot.com
by CTGray on Mar 26, 2009 9:16 PM PDT reply actions 0 recs
There are games
I’d definitely pay a buck to see. Especially if I could watch them on my own schedule. The time difference is really why I don’t watch more Eastern Conference games. It’s kinda hard to when I’m still at work. This is just another sad example of old media completely blowing an opportunity to make easy money with new media formats.
In an amusing, somewhat related note, at least as far as old media versus new media goes, I had the distinct displeasure of listening to one of the ESPN radio guys this week after Kurt Schilling announced his retirement on his blog. He was going on for about half an hour on how outlets like ESPN are still necessary to get news like that to the masses, despite the athletes being able to go straight to the fans like Schilling did. I’m pretty sure most everyone who follows baseball would have found out about it without ESPN’s help.
It takes a big man to cry and it takes a bigger man to laugh at that man. -Jamie Baker
by Lurker Shark on Mar 26, 2009 9:44 PM PDT up reply actions 0 recs
the NHL
needs to buy “some” air time. if the NCAA can show 65 teams duke it out…twice (men and women). then i think the NHL should be able to air at least half the games and all of the playoffs. don’t know how realistic that is, but it can’t hurt to try.
"It aint over till the fat lady sings." - Not Yogi Berra
by serrapadre716 on Mar 27, 2009 9:25 AM PDT reply actions 0 recs
All of these are good suggestions.
I think that they should go the route of hulu or other online TV services. There’s some advertising and you get your product out there to the masses. Lift the blackouts as just start streaming these games for no cost. Especially with people less willing to part with their money due to the economy at the moment why not get rid of blackouts and simply get out there as much as possible and make whatever you can on ad revenue. I know If I could get a quality stream online I’d pay for it and turn my cable off except for the internet if I could get the local team broadcasts. Heck if they just charged a reasonable amount for the online and made sure it actually worked correctly i’d be down.
Support Your Local Coyotes Blog! -
Five For Howling
by Travis Hair on Mar 28, 2009 1:48 AM PDT reply actions 0 recs
I know If I could get a quality stream online I’d pay for it and turn my cable off except for the internet if I could get the local team broadcasts
Same here. That’s the only reason we still have cable.
resident cartoonist @couchtarts.blogspot.com
by CTGray on Mar 28, 2009 10:37 AM PDT reply actions 0 recs
catching sharks games on the road
So I am into the 3rd week of a 4 week consulting gig down in LA area and have had a very hard time catching the Sharks games anywhere – very frustrating because I have the Dish Network HD feed on my DVR at home…so the options as I see them for catching games while on the road:
1) call local sports bars before the game – see if they can tune in your team – I did this – they said they had it – they did not – see my review of them (google Bostons sports bar 11260 4th St)
2) find the game online – my hotel has free wifi – but as mentioned the NHL.com “day pass” pricing is a joke (considering I have paid for the TV access a home)
3) place-shift (I just read about the Dish VIP 922 today and their integration of their acquired slingbox technology – so now you get time and place shifting!) – I WANT IT!
But I’m just hoping to see the Calgary vs Sharks tomorrow…
GO SHARKS!!
by fletch09 on Mar 29, 2009 7:06 PM PDT reply actions 0 recs

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