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DIRECTV and NFL extend Contract

Discussion in 'DIRECTV Programming' started by markman07, Mar 23, 2009.

  1. Mar 23, 2009 #41 of 179
    Zieglermd

    Zieglermd Cool Member

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    If I recall correctly, in the last conference call with Chase Carey, he confirmed that Sunday Ticket was not a loss leader and it paid for itself. He did not mention any dollar figures and this is the only time I have ever heard anything mentioned about the costs associated with Sunday Ticket.
     
  2. Mar 23, 2009 #42 of 179
    Satelliteracer

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    I wouldn't be so sure.
     
  3. Mar 23, 2009 #43 of 179
    keenan

    keenan Godfather

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    Are you saying that ST subs only cover the cost of the package to the NFL? This new package is costing DirecTV $1 bill per year, there's no way the limited number of ST subs could possibly cover that.
     
  4. Mar 23, 2009 #44 of 179
    DCSholtis

    DCSholtis Up The Irons!

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    Those rights I believe expire after the 2010 season so maybe an announcement of some kind with the nets is coming up.
     
  5. Mar 23, 2009 #45 of 179
    keenan

    keenan Godfather

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    Then I could be wrong, but I know in the past it has been a loser. At $1 bill a year it would mean that there would have to be at least 350,000+ ST subs. Is there that many? I think that number is rather high and I know there's been numbers for that mentioned in the past, although, I would have to hunt them down.

    Hey, if it pays for itself, great, but I don't believe it for a minute. :)
     
  6. Mar 23, 2009 #46 of 179
    DodgerKing

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    Even if Direct loses money directly from ST alone, I am sure they gain in net profit due to the extra subs. IOW, the subs that choose Direct because of ST not only pay for ST, but the base package and often other packages as well. The total money paid by these subs (subs Direct may normally not have) is additional revenue that Direct may normally not see.

    Direct is the most successful provider around (FiOS is starting to give them a run for their money). Every quarter they add subs, revenue, and keep their profits margins within a finite range. They must be doing something right. Malone must know how much he must pay for something in order to profit in the long run. I think this deal (even though it increases by a significant percent) may increase Directs profits off of ST alone by the same percentage or more. Especially if they still own at least some of the rights to the Red Zone channel (other providers will have to pay them to carry it).
     
  7. Mar 23, 2009 #47 of 179
    hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Kinda what I was theorizing...
     
  8. Mar 23, 2009 #48 of 179
    Satelliteracer

    Satelliteracer Hall Of Fame

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    I believe he's saying it pays for itself now
     
  9. Mar 23, 2009 #49 of 179
    keenan

    keenan Godfather

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    Oh I agree, DirecTV seems to be doing everything right, even in a depressed economy, it's rather amazing actually. Maybe the rest of the business world should take notes. :D
     
  10. Mar 23, 2009 #50 of 179
    Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    I suspect this agreement brings several new revenue streams (or broadbands :lol:) into DIRECTV to help offset the costs.

    I don't know if ST will continue to pay for itself. But I do know DIRECTV will do everything it can to make it pay for itself.
     
  11. Mar 23, 2009 #51 of 179
    hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Translation = rate increase on NFLST every year... :D:lol:
     
  12. Mar 23, 2009 #52 of 179
    Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    Like I never expected that :)
     
  13. Mar 23, 2009 #53 of 179
    RobertE

    RobertE New Member

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    I guess I'm reading it differently.

    I take it as: In addition to getting NFLST on DirecTv, you can get it via broadband, even if you can't get DirecTv. That opens up NFLST to a lot more subscribers and more $$$ for DirecTv and the NFL.
     
  14. Mar 23, 2009 #54 of 179
    hdtvfan0001

    hdtvfan0001 Well-Known Member

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    :lol: :lol: :lol:
     
  15. Mar 23, 2009 #55 of 179
    cariera

    cariera Icon

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    Why is that # so hard to believe. Their new customer offers from July through December include the NFLST. At about 2M gross new subs with a 25% buy in rate, and even with subscriber churn, that # would probably be acheived. Not to mention those like me who autorenew.

    Also don't forgot restaurants, sports bars and casinos that subscribe to the Ticket at $100's, $1000's and even tens of $1000's a pop.

    It is very believable that the Ticket pays for itself.:)
     
  16. Mar 23, 2009 #56 of 179
    dlocks

    dlocks Mentor

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    Any thoughts as to what the broadband subscription might cost?
     
  17. Mar 23, 2009 #57 of 179
    gpg

    gpg Well-Known Member

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    If you read the full press release linked in post #1, it seems pretty clear that the intention is to limit broadband access to DirecTV NFLST subs and non-subs who cannot receive DirecTV. The release also implies that DirecTV customers will have to subscribe to the Superfan package to get the Red Zone channel.
     
  18. Mar 23, 2009 #58 of 179
    Luck255

    Luck255 Legend

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    So just using math from other posts if ST costs 1$bill /yr and ST costs $280 and someone mentioned 350,000 subscribers. 280* 350,000 = $98,000,000. That doesn't include superfan or commercial accounts which pay much more than $280. I'd guess it pays for itself.
     
  19. Mar 24, 2009 #59 of 179
    JoeTheDragon

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    Does that mean that att uverse uses can get ST soon?
     
  20. Mar 24, 2009 #60 of 179
    newsman

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    Not really. If it was the most pro-consumer sport, ST would be made available to all cable subs and DN. If you were consumer friendly, I wouldn't have to have my slingbox in Miami watching the Dolphins games while living in Houston. If you were consumer friendly, I would subscribe to just receive my team's games - aka a la carte pricing/programming. You would still make money. In this case, you lose, since I don't pay to watch the games that I want to watch. The NFL is all business. It does not care about the fans. When the NFL continues to charge fans regular season pricing for exhibition games, it isn't consumer friendly - unlike baseball.
     

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