Wait a minute, SR. Maybe I need a third cup of coffee but aren't you arguing for two completely contradictory positions? What is it? Should sports channels like the PAC 12 be a separate tiered package? That's what the article you linked to seems to say DirecTV's position is. Or are they part of the base package? You seem to be telling TheRatPatrol that must be the case.
Please tell me what I'm missing here.
Not at all. I talking about what is desired and what is reality. I'm showing that many customers who don't like sports want it to be tiered. Fair point. D* tries to do that with Pac 12 and what happens? Those that don't care about cost want it no matter what. Again, puts a distributor in a very difficult position. Trying to manage insane cost increases, mostly at the hands of sports, while also delivering a product that SOME people (very passionate) want without impacting everyone.
Very difficult. My point with HBO is that you simply will not see sports in a HBO time a la carte format any time soon, in my opinion. Despite the fact the distributors would love to see that happen to control costs and despite the fact many customers would love to see that, the economics won't allow for it.
The sports channels are often backing into a number based on over reaching on what they promised the team and\or league. Let's take the Lakers channel for example. They grossly overpaid for that product for the next 20 years. Now they have to monetize it across all these distributors. Everyone has to pay a ton of money to make them whole so they can make the Lakers whole. If that channel was only on a sports tier or a la carte as the poster suggested, the channel would be about $50 a month for that one channel in order for TWC to deliver the same revenue to the Lakers. That is because the number of people truly interested in the channel is far far far less than the required distribution the network needs. That's why I say that the HBO model won't work there. It's hard enough to get sports channels into a sports tier (ironic statement, don't you think), but putting them solely a la carte I don't see happening due to the economics at work.