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Discussion in 'DIRECTV General Discussion' started by jtn, Oct 31, 2007.
You are correct, sir.
Back in 2005 when DirecTV first introduced the extra Super Fan charge for ST, this thread popped up over at the dbsforums.com site (http://www.dbsforums.com/vbulletin/showthread.php?t=43371)
The posts by Dan Collins are very informative. In post #128, he summarizes things very well:
As someone that has closely followed the history of NFL Sunday Ticket for many years, let me point out a few things (many of which have been pointed out previously):
1) The negotiations with the NFL are based upon them setting forth terms. The current licensee then has "right of first refusal." This means that they can take the deal, or make a counter offer. If, after a certain period of time, the two parties can not strike a deal, the package is then open to bids.
2) When NFLST became an exclusive, it was because the National Football League wanted it so. They decided that selling it to both DirecTV and C-Band was not the most productive pricing model. They also knew that NFLST helped DirecTV be more competitive against cable and Dish Network. They ALSO knew that Dish Network, starting that year, had the capacity to carry NFLST. So they offered NFLST as an exclusive to DirecTV. DirecTV would have been fools to refuse to pay the premium.
3) The broadcast networks have been pressuring the NFL to eliminate NFLST all together. They don't like paying the NFL obscene amounts of money, only to have viewers be able to pick which games they actually watch. The networks sell advertising time during NFL games for equally obscene rates, and they want to be able to tell advertisers EXACTLY how many viewers they are delivering and their demographics.
4) The broadcasters were particulaly upset over delivery of their HD feeds without any additional concessions or payment to them. They have come to view HD delivery as a competitive advantage over pay-tv. The premium payment for HD feeds was, therefore, THEIR idea.
5) While NFLST could, theoretically, be offered as a non-exclusive, it will never happen. The NFL knows that widespread availability of NFLST via cable and satellite will only serve to dilute their network revenue as well. This is their #1 priority. They will kill NFLST before they let it become universally available.
6) DirecTV certainly decides HOW to price NFLST. The minimum price is set by the value of the contract they have with the NFL. Given a schedule of payments that they must make to the NFL, they develop the most productive pricing model. That's what they have done. If it is not as productive as they hope, it will be adjusted next year. That's business.
The biggest competition to ST? The slingbox (and similar). I am a displaced fan (anyone need to guess? ) and have had ST for more than 10 years for that reason. Sling and Hava could give me something ST does not. Access to the local Green Bay programming about the Packers that I can't get anywhere else. (One coaches show is now on the web, but some of the best are not.)
If I open that door to access those programs, I'm not far from just dropping ST/SF and doing that for game day too.
So DIRECTV has an opportunity. Get all the local coaches shows and present them on a more formalized and more timely basis. (Sunday, while I'm at church, for the show from last week's game, and only a few of the one coache's show I can get on the web, isn't good enough.)
Or go to a single team, single division, single conference packages. I'd actually would spend more money under that scenario as I'd give gifts to family who can't afford the whole ST.
They sure are, $7-9 per household is what the NFL wants.
That is on an annual basis or about $.90 per household per month.
Six foot? Ehh..."real men" went with 8', 10' or even 12' dishes!
Actually, before NFL ST you could get most of the games on C-Band...with no commercials and getting to listen to the guys in the booth when they didn't think they were on the air. Just took a bit more tuning around.
Yup, did that too (at my uncles house) before I could afford mine. Alas, the networks decided to encrypt their signals.
Got some great coverage of the Indy 500, listening to the group talking about how to cover as they came out of break.
And caught a bit of a feed as Marc Shaiman was sending a reel of possible music compositions written for First Wives Club. I think I still have that on video tape.
I don't mind paying for ST and SF; that way I get a better experience overall.
E* won't have interest. Over the past 5 years they've scared away just about every sports fan they had. I'd be shocked if 10% of their existing customers would want NFLSD, let alone pay $350+ for it. Plus TV providers are like banks. You really have to be peaved off to switch your business elsewhere. Count Charlie out.
Simply not true. The contract for 2003-2007 was for $2 billion ($400M per year) and gave DirecTV 3 years of exclusive rights and two years of NON-EXCLUSIVE rights. It gave the NFL the right to sell the package to cable companies for the 2006 and 2007 seasons. The NFL wouldn't have made that deal if they didn't want to sell the package non-exclusive. The only reason it stayed exclusive after 2005 is that DirecTV ponied up substantially more money ($700M per year) to keep the deal exclusive.
The notion that the NFL would not get as much money from the networks with a non-exclusive ST package is also erroneous. The value of the NFL games to the networks is in the advertising, which is the same (as far as the network ads are concerned) whether the games are seen on local channels or on Sunday Ticket. Expansion of the viewer base would not make the package worth less to the networks.
Thanks, Tom, that makes more sense. Subscriber charges are normally quoted per-month, not per-year.
I don't believe that, though I am a ST subscriber. I like D* for many reasons and would not have E*. The addition of more HD is smart for them, as it does give them something else, instead of relying on just sports fans that will not leave because they do not want to lose MLB or NFL, though MLB is not exclusive, not all other providers have it. I do believe that D* has a good portion of customers that only hang around for NFL ST, and if it were lost, or opened to others, sure they would lose some........does that mean the end of D*? NO WAY!
At $500, count me WAY out!!!! If it wasn't for free SF, I would have to think hard about how long I want to pay $328 or more ($229 was my ST renewal, $99 for SF), and it will go up from $328........how long will we pay increases???? Time will tell.....but it will not make it to $500 without alot of dropped subs WELL BEFORE it reaches that point!!
If D* loses ST then they have probably lost me also. It is really the only thing that keeps me from even looking at other providers. When I lost the DLB's because I had to "upgrade" to the HR20 I was ticked off, but not to the point of leaving because of one thing, the ST. Other providers will eventually catch up with the HD content so I figure that will not be an issue in the future, but no one else can allow me to see my team every sunday. Now, I will say that they are getting extremely close to Pricing themselves out of business and if the price goes much higher I will have to do a lot of soul searching too see if it is really worth it. I'd like to see them maybe offer a "one team" package at a reduced rate. With the lack of DLB's it's virtually impossible to follow more than one game anyway.
5 actually, maybe even more. I believe it was 2002 contract that DirecTV had "satellite" exclusivity and then in 2005 they got total exclusivity.
You're not correct there. There is a lot of value to the networks in the local affiliate being able to sell advertising. Having the NFL deal is what keeps many local affiliates with their network. When CBS and then NBC lost the NFL there were several channels that changed networks to keep the home team (Philadelphia had it happen for one).
The networks HAVE to keep the non O and Os happy and the sports deals are one way they do it.
In addition, the networks also receive a piece of the local ad sales during the games.
As for cost, even as rabid a fantasy football fan I am I certainly have my limits, but I'd probably pay $300, maybe $400. I fight for free or reduced SuperFan every year.
But I minimize my costs by going on the monthly plan. Look for it in January and Feburary. I pay $20 or so a month for 11 months. This way I can budget it better and I also get a better sense as to what it really costs. So I go out to eat one less time a month and Sunday Ticket is paid for. Works for me!
I'm one of those fans that will go where the Sunday Ticket goes. I'm a Seahawks fan, but live in Berkeley. Strangely enough I didn't move to Directv because of the Sunday Ticket, (I got tired of Comcast's nonsense), but once here, I hooked. I like the service Directv provides, but the Sunday Ticket is one of those necessary elements.
I seem to remember the early days being able to get the ST for like $99 or $129 a season.
I have not subscribed for years.. I get too much football as it is. I can see all the Cowboys games, most relevant division games, and any other big games are on primetime.
Used to be fun to do it, but even though I make a lot more money, I could not see paying the going rate for it now. I have a good friend who lives on the East Coast though, and he gets it for the Cowboys games. I would do the same thing. But that would be the only reason I would pay for it.
As for exclusivity I see no problem with it. I have a hard time believing the NFL could make more money by opening it up. The amount of money that DirecTV would be paying to the NFL for the rights would be a small fraction of what they are now... since everything would have to be relegated to flat subscriber fees. The current arrangement works best for the NFL and for DirecTV. Their competitors don't like it, and the people who don't want to get or can't get DirecTV don't like it.
Yes, I am correct there. If the NFL really felt a non-exclusive deal would make the network contracts less valuable, they wouldn't have agreed to a deal that was non-exclusive for the last two years of the contract. The notion that a non-exclusive deal makes the network contracts more valuable is just a theory that isn't supported by the facts.
How many local ads are on during an NFL game on CBS or Fox? I would guess the few that are on are local car dealership ads and ads for local programming from the local station.
No other company should get NFL Sunday Ticket, they'll abuse it. Leave DirecTV in charge and let you ppl cry again like babies. :lol: