Why Did TV Networks Like ABC, CBS, and NBC Shut Down Their Field Operations Divisions for Sports Events?

Television networks such as ABC, CBS, and NBC have historically played a crucial role in broadcasting sports events. However, in recent years, these networks have decided to divest their field production operations divisions and rely more on third-party vendors. In this article, we will explore two key reasons behind this shift: financial concerns due to the costs of maintaining outside broadcast (OB) operations and technological changes that render existing equipment obsolete.

Financial Concerns

Operating a field production operations division is an expensive endeavor. These operations often require significant capital investment for assets like OB trucks, audio equipment, and satellite broadcasting technology. Maintenance, staffing, and union labor costs contribute to the high expenses associated with running such a division. Additionally, consistency in the use of these assets is essential to justify the investment and ensure a return on that investment.

While third-party OB vendors are flexible and can work on various projects for multiple networks and producers, major networks like ABC, CBS, and NBC tend to retain ownership and operation of their assets primarily for their own content. This limited usage can make it difficult to justify the financial burden of maintaining a dedicated in-house OB division.

Technological Changes

The broadcast industry has undergone rapid technological transformations, which can quickly render existing equipment obsolete. ABC, CBS, and NBC, much like many other networks, found themselves at the cusp of this technological evolution when they decided to divest their OB divisions. This timing was particularly significant as the industry was transitioning from analog and standard definition to digital and high definition formats.

As major networks foresaw the inevitable change to high-definition broadcasting, they recognized that their existing OB trucks and equipment were becoming less relevant and more of a hindrance than an asset. By selling off their older technology, these networks could reallocate their resources to more modern and efficient equipment, ensuring they remain at the forefront of technological advancements.

Advantages of Outsourcing

Outsourcing OB services to trusted vendors offers numerous advantages. Firstly, it can have positive tax implications for the networks, allowing them to optimize their financial operations. Additionally, outsourcing helps manage labor costs and union negotiations, simplifying the labor processes and often leading to more favorable contract terms.

Furthermore, by relying on third-party vendors, networks can stay at the cutting edge of technological advancements. Vendors specializing in OB services often have the latest equipment and innovations, ensuring that the broadcasts remain high-quality and competitive.

Conclusion

The decision of networks like ABC, CBS, and NBC to divest their field production operations divisions for sports events is driven by a combination of financial prudence and strategic planning in response to technological changes. While the move may seem drastic, it aligns with broader industry trends and helps ensure that these networks can continue to provide high-quality sports coverage while optimizing their resources.

For broadcasters and sports lovers alike, staying informed about industry changes is key. By understanding the reasons behind these decisions, we can better appreciate the evolving landscape of sports broadcasting and its impact on the quality of the viewing experience.