DirecTV, how much do they pay NFL?

[BrettR]

I've read from various articles, that DirecTV pays for an exclusive for the Ticket.

Then, the NFL requires a certain amount of subscribers by DirecTV, and collects the package's revenue on top of what DirecTV is paying for exclusivity. But in end, How much is NFL getting from DirecTV in a year versus the number of ticket subscribers? The numbers from a few articles I've seen dont indicate clearly enough. According to some, the package doesnt make DirecTV a profit, but just adds subscribers.

Isnt this extremely dangerous if DirecTV lost exclusivity, lost the package, or if NFL asked for an absurd amount next contract? With Dish Network, they've added more subscribers than DirecTV without the package. But if DirecTV subscriber base is showing few taking the package (maybe 1 million) and most not, it leaves DirecTV with a wall behind them if things with NFL dont go smoothly.

[Greg Bimson]

http://www.sportingnews.com/voices/fritz_quindt/20011205.html

[Karl Foster]

That article is a little old - Dec. 2001, but had a very interesting paragraph:

Will the NFL renew with a satellite monopoly for a (theoretically) smaller rights fee? The league could cash in by shifting Sunday Ticket to the digital-cable exploding universe, except it can't; its Fox/CBS/ABC/ESPN treaty allows only satellite retransmissions.

It'll be interesting to see what happens.

[BrettR]

Yeah, I read that article and posted it on another thread. $150 million annually. Another article from yahoo said $179 million to NFL. But is this for exclusivity first or just from the revenue of the package itself?

[Ryan]

As a public company, doesn't Hughes have to break down some of these numbers somewhere?

$179 million is probably the package revenue (estimated) since that equals the cost against the subs.


I would guess that DirecTV 'pays' for exclusivity by handing over nearly 100% of the package gross to the NFL. In other packages DirecTV keeps a substantial percentage of the package gross. But that is just my uninformed guess. I have no information that indicates the nearly 100% number.

I still think DirecTV benefits by upping their subscriber numbers. I would venture that few NFLST subscribers purchase that and only that package throughout the year. So DirecTV gets a little bit of other sports packages or minimum standard packages.

The other factor here is the commerical subscribers. Sports package costs for commerical establishments can easily run into the thousands of dollars. And even though other sports packages can now be had on digital cable, using just one provider simplifies things for a sports bar or Turf Club, etc. And Directv does get to keep substantial revenues from the NBA, MLB, NHL, NCAA, soccer, etc. packages. (Here in Philly in might be different now since Comcast withholds most local games. But up until a year or two ago, a sports bar still would have need DirecTV to get the sports packages.)

[Scott Greczkowski]

Here's some things that talk more about this.

http://tv.yahoo.com/news/va/20020808/102880381400.html

http://www.dbstalk.com/showthread.php?s=&threadid=3388

I am now starting to think that this year will INDEED be the last year of the NFL Sunday Ticket as we now know it.

From the buzzing I am hearing, next years NFL ticket may be available to both Cable and Satellite, instead of a season ticket, you will instead be able to order individual Sundays via Pay Per View, with a portion of the money going to your local broadcast affiliate to make up for their lost revenue.

While everyone would love to see the package continue in its current form, I don't think its really possible.

[Ryan]

If they do go to a weekly event, what do you think the price will be? $19.99 per Sunday?