A recent story in the Sports Daily section about lucrative TV contracts for baseball broadcasts spoke with Andrew Zimbalist, the Robert A. Woods professor of economics at Smith College. The original version of the story as it appeared in print cited the use of DVRs as the reason Zimbalist believes rates are currently in a bubble.
However, that was an oversimplification of his full thoughts. There will be a correction in the Jan. 29 print edition, and here is a fuller explanation from Zimbalist:
Several factors suggest that the explosion in media income may have created a bubble, including: (a) the impact of the DVR in shifting advertisers to sports; (b) the race of networks, cable and satellite distributors, and media companies to own sports programming in an uncertain institutional context; (c) the proliferation of video viewing and programming options; (d) rapidly rising cable fees in an environment of tight household budget constraints; (e) the possibility that the FCC or Congress will impose some degree of a la carte pricing; and (f) the uncertainty about programming distribution systems with the growing prominence of the internet and mobile devices.