Sorry, but it looks to me like you are somewhat wrong in terms of how much this is costing directv. The spanish channel is not included in all the same packages as the english channel, which means they likely will not be paying that 4 for all the subs in the market, as that price was for both channels.
Yes it will cost us more, but it will be very interesting to see what happens next. I suspect there are several sports channels that aren't going to be very happy the next time their contracts are up, like speed, etc..
And I wonder what changes may be coming to packages and pricing in feb. Do NOT blame any price increases that are abnormal on just this channel. I am sure Viacom will have more of a hand in that then this channel. Not ot mention all the other things that where reupped this year, like cbs, etc, and possibly discovery and so on...
And I suspect that all the college channels will be a la cart here on out, or in a college sports channel package, or just not be on directv. I think at the moment, that is their hard line in the sand. I suspect big 10 will be very unhappy at the next negotiations.
Not really. Deportes was a throw-in. It is "free". Trust me. You get Deportes if you take TWC, but you can't take TWC without paying about $4.00. It becomes an accounting gimmick. Yes, I get where you are coming from in terms of the subscribers and how they bucket all of this, but at the end of the day TWC is going to get a big chunk of change for a service that delivers not that much.
You're going to see some fractures in not only college but the pro sports world. It won't happen everywhere, but in some markets it will. Chicago, New York, L.A., maybe Dallas or similar type of market.
When the Disney deal comes up for DTV (which I'm hearing is 2014), Longhorn will be crammed down their throat along with a massive increase in rates over what they are charging now. Have to be able to pay the NFL, MLB and the NCAA for all those rights fees deals they recently cut.
Ultimately you'll end up with people on very low base tiers or cutting the cord or people having it all (or most) and paying through the nose. There won't be a middle any longer. The question becomes when does it all collapse on itself? If enough people go to a lower tier without the sports, it will violate the contracts the distributors have with the sports channels on the distribution eyeball guarantees. Or, if customers cut the cord entirely, the leagues \ teams lose out on the money due to lack of subscribers. It makes the next negotiation that much more of a nightmare, encourages piracy, all kinds of other nefarious activities.
Unfortunate, but this is all very predictable. Mike White is dead on right in his remarks, but you can see from the reactions of diehard Lakers fans that they don't care. GIVE GIVE GIVE ME MY STUFF NOW. Understandable, but there are consquences to doing that, which we will see with the further fracturing of the system until it collapses entirely.