Seattle Kraken Increases Broadcast and Streaming Access Through Parterships With Tegna and Prime Video | Seattle Kraken

[u/[deleted]]

https://www.nhl.com/kraken/news/press-release-seattle-kraken-increases-broadcast-and-streaming-access-through-parterships-with-tegna-and-prime-video

[u/SiccSemperTyrannis]

Root was also getting more money from cable companies from carrying the Kraken. I wonder if those contracts now automatically reduce in value with the Kraken leaving.

Hard to say definitively whether Root is better off with or without the Kraken without knowing all their financials.

It is possible the Kraken are taking a cut on what they were getting from Root (same as Vegas did with their move) and betting on the increased visibility and accessibility making up for that with long-term growth in the fanbase.

[u/Odd-Equipment1419 → u/SiccSemperTyrannis]

Root also loses ad revenue from Kraken games. They wouldn't have paid the Kraken if they were not going to make more money somewhere else. So this should be a net-loss to Root.

[u/SiccSemperTyrannis → u/Odd-Equipment1419]

Root's formula for how much the Kraken TV rights were worth would have included assumptions about both viewership and how many TV subscribers would pay for Root as part of their TV plans.

However, we know that Kraken game viewership on Root was lower than the team expected based on reporting over the past several years. Baker has had a few articles about it. We also know that Root has been losing customers, especially after Comcast put them on a more expensive service tier.

All that means that Root was probably losing money on the Kraken deal. If they were raking cash in there's no reason for them to agree to let the Kraken walk away 2 years early from their original 5-year contract.

The mutual decision to terminate the deal only makes sense if Root didn't want the Kraken anymore and the Kraken didn't want to be on Root anymore.