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Is Google and the Internet a serious 'threat' to DirecTV?


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#1 OFFLINE   Athlon646464

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Posted 28 August 2013 - 06:55 AM

Is Google and the Internet a serious 'threat' to DirecTV?

 

Currently, DIRECTV pays $1 billion per year, but has fewer than 3 million subscribers, who pay between $225 and $300 per year ; the package is costing the company hundreds of millions per year, although it is a key differentiator that attracts business.

 
There have been absolutely no indications from Google, if it were to take over NFL Sunday Ticket, as to how it might price the service. What we do know is that Google reports having 1 billion unique visitors to YouTube each month who watch more than 6 billion hours of video. That means that if 0.5% of YouTube visitors were willing to pay $200 for a season of NFL Sunday Ticket, Google could break even on a $1 billion price tag, while cementing a place of legitimacy for its platform.
 
Should Google acquire the rights to NFL Sunday Ticket, it would be yet another example of the Internet becoming the preferred distribution method for content. YouTube is already a dominant video portal, but by pairing it with the NFL, Google could position itself as a major player in the digital TV world.
 

1 HR34-700, 1 C31-700, 1 HR24-500
Original install on April 20, 2008 - HR34 & C31 installed on August 24, 2013 - HR24 installed on July 23, 2010

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