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DirecTV to hit 5 million subscribers with $3 monthly sports surcharge


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20 replies to this topic

#1 OFFLINE   Athlon646464

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Posted 16 July 2013 - 07:21 AM

DirecTV to hit 5 million subscribers with $3 monthly sports surcharge
 
CEO Mike White says 'sports business model is broken'
 
DirecTV will soon begin charging about 5 million subscribers in New York, Los Angeles and other markets with expensive regional sports networks monthly surcharges of $3.
 
Last year, the top satellite TV provider began charging new subscribers in Los Angeles and New York an additional $3 monthly to cover the costs of RSNs such as Time Warner Cable SportsNet and YES Network. 
 
But White told analysts on DirecTV's earnings call Thursday that the company will be forced to charge existing subscribers in those markets, which he said represent about 20 percent of its subscriber base. DirecTV counted 20.08 million U.S. subscribers at the end of the fourth quarter.
 

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#2 OFFLINE   damondlt

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Posted 16 July 2013 - 07:40 AM

Yea we know, I've been paying and RSN fee since March. This story is from February

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#3 OFFLINE   Athlon646464

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Posted 16 July 2013 - 07:50 AM

Woops - it hit my radar today.......

 

I'll kill it from the home page.  Thanks for the heads up.


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#4 OFFLINE   JoeTheDragon

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Posted 16 July 2013 - 08:59 AM

will LA subs see an $5-$6+ one to cover the new sports net LA?


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#5 OFFLINE   242424

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Posted 16 July 2013 - 08:31 PM

Now the new Fox Sports 1 wants a bigger chunk 



#6 ONLINE   Mark Holtz

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Posted 16 July 2013 - 10:19 PM

Can we opt out of the sports channels? Pretty please? With sugar on it? 

 

Yes, I think the fees have gotten re-donk-ulous. 


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#7 OFFLINE   inf0z

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Posted 16 July 2013 - 10:26 PM

Can we opt out of the sports channels? Pretty please? With sugar on it? 

 

Yes, I think the fees have gotten re-donk-ulous. 

Yes - if you change to the entertainment package you can.  This package is 100% sports free with the exception of sports that may play on your local channels (ABC, NBC, CBS, Fox etc..)


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#8 OFFLINE   wingrider01

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Posted 17 July 2013 - 05:07 AM

Yes - if you change to the entertainment package you can.  This package is 100% sports free with the exception of sports that may play on your local channels (ABC, NBC, CBS, Fox etc..)

 

Not good enough, that package is missing a lot of channels that are used in this household, Directv needs to restructure and pull all sports channels into their own package.



#9 OFFLINE   Mike Bertelson

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Posted 17 July 2013 - 06:31 AM

Sports channels want huge sums per subscriber. This leads to additional fees.

If you believe the reports networks like Yes and SNY cost ≈$2.40 per subscriber and ESPN is approaching $5 per sub…which has got to be approaching the highest per channel cost we’ve got.

Providers can’t keep paying these amounts to carry sports channels. I think Mike White is right in saying 'sports business model is broken'. I’ll bet the high cost is what’s keeping DIRECTV & the PAC-12 Networks from reaching an agreement. And, now Fox wants a bump in per sub fees for Fox Sports 1 (FS1) coming next month (Speed is changing to Fox Sports 1 next month).

As near as I can tell, ESPN started the ball rolling. They wanted high prices and nobody wanted to be the provider who doesn’t carry ESPN so they all started paying the ever increasing carriage fees. It’s just snowballed from there. DIRECTV can't keep eating the cost so now it comes back on us.

Gotta pay the athletes and owners; so the teams need the TV contracts; the networks pay the ever growing contracts to carry the games; the providers have to pay the higher carriage costs...So,the subscribers have to pay higher fees to cover the higher carriage costs, to pay the ever growing contracts that the teams need so they can pay the athletes and owners millions of dollars each year…and it just keeps growing. :(

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#10 OFFLINE   242424

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Posted 17 July 2013 - 06:49 AM

 

 

  • Fox asking for increased fees for Fox Sports 1: Sports Business Daily reported yesterday that FOX Networks will ask cable and satellite providers to pay 80 cents per month per subscriber for the newly rebranded Fox Sports 1, with carriage fees climbing to $1.50 monthly over the life of multi-year contracts. Affiliates currently pay approximately 23 cents per month for SPEED. FOX has already inked a new deal with Comcast Cable, but major carriers Time Warner Cable, DirecTV and Dish Network have reportedly balked at the price increase. Fox Sports 1 - formerly known as SPEED - will televise college football and basketball, NASCAR racing, UFC mixed martial arts events and sports news programs.(Godfather Motorsports)(7-17-2013)

 



#11 OFFLINE   FenixTX

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Posted 17 July 2013 - 10:14 AM

I thought even the entertainment package had ESPN in it?
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#12 OFFLINE   slice1900

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Posted 17 July 2013 - 10:25 AM

They've already got some football games on the schedule for the fall, I'm sure there will be plenty of people who can't get FS1 and will be pissed when they can't watch their team. If none of the big providers add it, at least everyone would be in the same boat. But I'm sure a few will knuckle under at the 11th hour hoping to use the competition not having it and hoping those who missed the game can be enticed to switch.


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#13 OFFLINE   Mike Bertelson

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Posted 17 July 2013 - 10:42 AM

I thought even the entertainment package had ESPN in it?

 

I just checked and all the packages have ESPN.

 

Mike


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Since it costs 2.4¢ to produce a penny, my 2¢ worth is really 4.8¢ worth.  That 4.8¢ is my own and not the 4.8¢ of DIRECTV, Dish, or anyone else for that matter.


#14 OFFLINE   Crow159

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Posted 17 July 2013 - 10:57 AM

I think, at the very least, there should be a way to opt out of the RSNs if your area has the additional sports surcharge. If there is going to be an additional fee for some markets, there should be some way to avoid that fee in those markets as well.


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#15 OFFLINE   damondlt

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Posted 17 July 2013 - 12:41 PM

I think, at the very least, there should be a way to opt out of the RSNs if your area has the additional sports surcharge. If there is going to be an additional fee for some markets, there should be some way to avoid that fee in those markets as well.

Agree, they are forcing this charge on us. 

Not everyone wants to subscribe to the entertainment pack.

 

Not much of a choice if you ask me.


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#16 OFFLINE   inf0z

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Posted 17 July 2013 - 03:22 PM

I thought even the entertainment package had ESPN in it?

I stand corrected it looks like it does carry EPSN.  Just doesn't have ESPNu and ESPN News



#17 OFFLINE   ThomasM

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Posted 19 July 2013 - 06:27 PM

Not good enough, that package is missing a lot of channels that are used in this household, Directv needs to restructure and pull all sports channels into their own package.

 

+1


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#18 OFFLINE   whitewolf8214

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Posted 19 July 2013 - 07:33 PM

Not good enough, that package is missing a lot of channels that are used in this household, Directv needs to restructure and pull all sports channels into their own package.

+2 If it hits here It is going off!! :)


Edited by whitewolf8214, 19 July 2013 - 07:34 PM.


#19 ONLINE   inkahauts

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Posted 19 July 2013 - 10:03 PM

If only it was as easy as it is to say that.  It just doesn't work that way today.  But I think someday it might. More different packages with fewer channels in each package would make it so much easier.



#20 OFFLINE   PrinceLH

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Posted 22 July 2013 - 04:30 PM

I like my sports, but it's time for a stand.  Players and sports leagues are generating too much money and they don't need to pick our pockets at will.  I'm willing to forgo YES, MSG and SCNY, plus ESPN.  They're just not that important to me anymore.  If I want their games, I'll subscribe to a sports package like Extra Innings or Center Ice.  Directv needs to address this, head on, and tell those sports networks that they're going to de-link their services from the rest of their packages and make them stand on their own two feet.  I could see these markets backing down, if they where to do this.


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