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Reuters Exclusive: NFL, DirecTV agree to framework for Sunday Ticket deal


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31 replies to this topic

#1 OFFLINE   Athlon646464

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Posted 13 December 2013 - 06:14 AM

Reuters Exclusive: NFL, DirecTV agree to framework for Sunday Ticket deal
 
(Reuters) - The National Football League and DirecTV have agreed on a framework for negotiations to renew the satellite TV operator's contract to offer the popular NFL Sunday Ticket football package the company uses to attract subscribers, according to two sources with knowledge of the talks.
 
The two sides "are still in material negotiations," but extended their exclusive negotiating period to work through the remaining issues, according to one of the people. The talks might still not result in an agreement.
 
 
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#2 OFFLINE   boukengreen

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Posted 13 December 2013 - 10:59 AM

not a done deal yet

http://profootballta...t-with-directv/


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#3 OFFLINE   joshjr

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Posted 13 December 2013 - 11:32 AM

These things take time.  No telling what the hang up is.  I think its a pain to not be able to watch the games airing on local channels if I am out and about but have my phone with me.  They need a way around that.  Not sure what it is but it needs to be fixed as well.


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#4 OFFLINE   acostapimps

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Posted 13 December 2013 - 12:57 PM

you mean blackouts, I don't think they would do anything about that per the NFL rules, unless there's another way around it that I'm not aware of.

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#5 OFFLINE   Bambler

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Posted 14 December 2013 - 10:28 AM

The article mentions DirecTV retains an exclusive negotiating window. I wonder if the NFL will let that lapse? I think it would smart on their part, if nothing else to squeeze DirecTV even more if they do indeed decide to remain the course.

I can see why some snippets would leak, at least from DirecTV's perspective. The last thing they would want is for their exclusive negotiating window to end without a contract. However, it would be in the best interest of the NFL to see what others may offer and personally, I think that's exactly what may happen.

I still think that the NFL would be wise to strip DirecTV of streaming rights. Let DirecTV be the sole, "traditional" carrier, but let someone--who is in the business of streaming (like Google)--provide streaming rights for people fed up with traditional carriers and satelite dishes.

The NFL must know how valuable this commodity is. Even stripped of streaming rights, considering how anxious DirecTV seems to be, they would still fork over a ton to be the exclusive carrier, while begrudgedly giving up streaming rights. At least that's my opinion.

#6 OFFLINE   Athlon646464

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Posted 14 December 2013 - 11:45 AM

^^^

If they did that, wouldn't it server to speed up the paradigm shift causing an increased number of cord cutters each month?  The news of such a thing done by the NFL would cause more folks to look into how easily it can be done.


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#7 OFFLINE   ATLFAN48

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Posted 14 December 2013 - 12:19 PM

you mean blackouts, I don't think they would do anything about that per the NFL rules, unless there's another way around it that I'm not aware of.

I read somewhere, may have been the ESPN crawl that the FCC was in negoations with the NFL about easing blackout rules.  Might be the holdup.



#8 OFFLINE   boukengreen

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Posted 14 December 2013 - 01:13 PM

I read somewhere, may have been the ESPN crawl that the FCC was in negoations with the NFL about easing blackout rules.  Might be the holdup.

i thought they was talking about ending blackouts


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#9 ONLINE   ejbvt

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Posted 14 December 2013 - 01:27 PM

I will not be getting Sunday Ticket Max again since it is a complete rip off. If a game is on your local channel - regardless of what the team is - you can't watch it on your phone. COMPLETELY defeats the purpose. When you contact local channels about this, they tell you to get Sunday Ticket.

 

When I first got Max, I asked if I would be able to watch the Colts in NC on my phone. CSR said "sure, you're in NC and the Colts are not your local team." She didn't mention that it has nothing to do with local teams but it has to do with local channels. The 4/4:30 games that are billed as "Game of the Week" or whatever on CBS and Fox and most (85-90%) of CBS or Fox affiliates get the game, that game is essentially not on your mobile device for most people. Yet you pay for it to be. Unacceptable. 


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#10 OFFLINE   slice1900

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Posted 14 December 2013 - 01:29 PM

The NFL must know how valuable this commodity is. Even stripped of streaming rights, considering how anxious DirecTV seems to be, they would still fork over a ton to be the exclusive carrier, while begrudgedly giving up streaming rights. At least that's my opinion.

 

 

Selling streaming rights would make Sunday Ticket much less valuable to Directv. No one would have to choose Directv just to get access to Sunday Ticket as they do now, and the free Sunday Ticket offers would be much less likely to be a deciding factor in people choosing to switch from cable or Dish to Directv.

 

Additionally, the more people have access to watching the NFL games they want at home, the less valuable Sunday Ticket becomes to sports bars and restaurants. Every year it seems like one or two places that used to carry it in this area no longer do, because Directv keeps jacking up the cost. I'm assuming that the renegotiation will cause an even bigger price increase, but if it was accompanied by a cheaper "stream just your team" option that further reduced the potential audience for commercial establishments, they might see a ton of places dropping it between those two factors. If you no longer get Sunday Ticket, it opens the door to dropping Directv entirely...


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#11 OFFLINE   inkahauts

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Posted 14 December 2013 - 01:30 PM

I would not be surprised if NFL Sunday ticket is the first ott service DIRECTV has, and that they may sell Internet only subscriptions to it so that people without DIRECTV may be able to buy it as well. And they could protect their non streaming rights in how they price it all.

#12 OFFLINE   Bambler

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Posted 14 December 2013 - 03:50 PM

^^^
If they did that, wouldn't it server to speed up the paradigm shift causing an increased number of cord cutters each month? The news of such a thing done by the NFL would cause more folks to look into how easily it can be done.


I would definitely think so.

If anything, it's already happening. You don't need an abrupt change for a shift to occur; subtle changes over time do just fine. Just look at TVs and computers, for example, the shift from ten years ago to today are dramatic, although there really wasn't a single lynchpin that drove it.

However, this change, if it did occur, would be a lynchpin in my opinion.

Maybe DirecTV's motives aren't for the sake of keeping it for the obvious reasons, but to try and hold back what is going to happen whether they like it or not. A mud dam trying to hold back the Amazon River. Good luck.

I tried to do the math and I think from a purely economical perspective, this thing is a loss-leader for them? Even if they lost every customer, every bar that subscribed because of it, would it equate to $1 billion per year they wouldn't have to pay anymore? I don't know. And I doubt they would really lose everyone anyways.

A separate streaming deal just makes so much sense to me. I'm sure I'm not the only one that realizes it.

Edited by Bambler, 14 December 2013 - 03:51 PM.


#13 OFFLINE   slice1900

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Posted 14 December 2013 - 04:09 PM

I tried to do the math and I think from a purely economical perspective, this thing is a loss-leader for them? Even if they lost every customer, every bar that subscribed because of it, would it equate to $1 billion per year they wouldn't have to pay anymore? I don't know. And I doubt they would really lose everyone anyways.

 

 

According to their investor day a couple days ago, Directv exceeds $1 billion a year in revenue from commercial customers. The vast majority of that would be from sports bars/restaurants, due to the far higher prices they pay than other commercial customers. They probably make a quarter to a third of the $1 billion the pay for Sunday Ticket just from them, plus they have the revenue from who knows how many residential subscribers?

 

It may not quite reach break even, but the potential loss of revenue from losing the "Sunday Ticket lock-in" of subscribers who feel it's a must-have can't be underestimated. With that lock in, as more and more teams try to start their own sports channels, like the LA teams are doing, the more fans will hop around from provider to provider to get their local team. Having Sunday Ticket serves as an anchor for those sports fans to keep them with Directv.


Edited by slice1900, 14 December 2013 - 04:10 PM.

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#14 OFFLINE   Bambler

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Posted 14 December 2013 - 04:24 PM

According to their investor day a couple days ago, Directv exceeds $1 billion a year in revenue from commercial customers. The vast majority of that would be from sports bars/restaurants, due to the far higher prices they pay than other commercial customers. They probably make a quarter to a third of the $1 billion the pay for Sunday Ticket just from them, plus they have the revenue from who knows how many residential subscribers?
 
It may not quite reach break even, but the potential loss of revenue from losing the "Sunday Ticket lock-in" of subscribers who feel it's a must-have can't be underestimated. With that lock in, as more and more teams try to start their own sports channels, like the LA teams are doing, the more fans will hop around from provider to provider to get their local team. Having Sunday Ticket serves as an anchor for those sports fans to keep them with Directv.




Well, all the more reasons for the NFL to let DirecTV sweat, at the very least. If it was a loss-leader, it would probably be easier for DirecTV to walk. If what you say is true, maybe not.

The NFL should really let the exclusive negotiating period lapse. See what they can get for streaming rights or what other bidders may be willing to offer for exclusivity, especially if the above is true and I'm sure they can crunch numbers better than you or I.

#15 OFFLINE   slice1900

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Posted 14 December 2013 - 04:58 PM

Well, all the more reasons for the NFL to let DirecTV sweat, at the very least. If it was a loss-leader, it would probably be easier for DirecTV to walk. If what you say is true, maybe not.

The NFL should really let the exclusive negotiating period lapse. See what they can get for streaming rights or what other bidders may be willing to offer for exclusivity, especially if the above is true and I'm sure they can crunch numbers better than you or I.

 

The exclusive negotiating period isn't just an advantage for the NFL. It works both ways, depending on whether any other offers the NFL gets are better for them or not.

 

Let's say Directv makes the NFL an offer that expires when the exclusive negotiating period does. The NFL says they want more, and Directv declines so the talks are at a standstill until the exclusive period ends. The NFL talks to others, then comes back to Directv a month later and says they're prepared to accept the offer Directv previously extended. If that happened, Directv would assume the NFL had looked around and figured out Directv's offer was the best deal for them. Now Directv has them over a barrel and may lower their offer and the NFL comes out a loser by waiting.


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#16 OFFLINE   Bambler

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Posted 14 December 2013 - 05:11 PM

Thats true, although I seriously doubt that would happen, why else would DirecTV ask for an exclusive negotiating window in their pre-existing contract.

If a bidding war were to happen, the only winner would be the NFL. DirecTV must know this.

#17 OFFLINE   davidatl14

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Posted 14 December 2013 - 09:17 PM

As long as there are "Over the Air networks" involved in broadcasting the NFL there will be no chance for an ISP to stream NFLST.

 

NFL is just smart enough to throw their(ISP) name out for a little extra money and a modicum of leverage.


Edited by davidatl14, 14 December 2013 - 09:18 PM.

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#18 OFFLINE   peds48

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Posted 14 December 2013 - 09:34 PM

I will not be getting Sunday Ticket Max again since it is a complete rip off. If a game is on your local channel - regardless of what the team is - you can't watch it on your phone. COMPLETELY defeats the purpose. When you contact local channels about this, they tell you to get Sunday Ticket.

 

 

you are paying for games on ST, not for those on the local station.  how is that DirecTV's fault?


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#19 OFFLINE   Bambler

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Posted 14 December 2013 - 10:11 PM

As long as there are "Over the Air networks" involved in broadcasting the NFL there will be no chance for an ISP to stream NFLST.
 
NFL is just smart enough to throw their(ISP) name out for a little extra money and a modicum of leverage.



Never say never, especially when money is involved. Who knows what's going to happen?

MLB and the NBA have doesn't seem to have a problem with it.

#20 OFFLINE   davidatl14

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Posted 15 December 2013 - 08:13 AM

Never say never, especially when money is involved. Who knows what's going to happen?

MLB and the NBA have doesn't seem to have a problem with it.

 Because they are completely different packages. 

 

If MLB played one game a week and it was telecast by local network affiliates at NFL prices there would be no streaming package for them either.


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