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DirecTV's Hot Pass is a hot ticket for all

Discussion in 'DIRECTV General Discussion' started by Earl Bonovich, Mar 15, 2007.

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  1. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    DirecTV's Hot Pass is a hot ticket for all

    See the rest of the article at: SportingNews.com
     
  2. jamieh1

    jamieh1 Hall Of Fame

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    May 1, 2003
    Thats why directv does not want to cancel subscriptions.
    A co-worker called and was told she couldnt cancel, she called a 2nd time and they did cancel it.
     
  3. saleen351

    saleen351 Godfather

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    Mar 28, 2006
    Lets do some math.

    37 races * 85k each = $3,145,000
    Avg Sub Rev 100 bucks * 100k =10,000,000
    (we know this is truly lower)

    85 employees at the track, avg salary 40k (just a guess) a season=$3,400,000

    Production cost, I have no idea, but it's gotta be a lot. If you subtract out salaries and add in a value just for production/marketing/operatings etc, I would assume it's at least 200k per race.

    200k * 37 races = 7,400,000

    10,000,000
    7,400,000
    3,400,000
    3,145,000

    = -$3,945,000

    They are loosing money big time.

    In fact, if you took the 10m Rev and subtract the 85k per race fee along with a conservative guesstimate of employee salaries, they are looing money right there.

    Sure some folks switched to D when they came out, but that's impossible to estimate.
     
  4. Supervolcano

    Supervolcano Hall Of Fame

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    Jan 23, 2007
    Who's losing money?
    Broadcasters, DirecTV, or Nascar?

    This is all "extra money"!!!
    This money is above and beyond what everyone used to get from their normal advertising revenues!!!
     
  5. saleen351

    saleen351 Godfather

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    Mar 28, 2006
    I didn't learn what "extra money" is in my econ classes in college, but D is loosing money on this package plain and simple. They even said before the season it was a huge risk, so it may take them 2 years to break even, but as nascar ratings slide even further it's going to be harder and harder to dig themselves out.
     
  6. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    What you negelect to factor in...

    Those that come to DirecTV for the package (for the first time)...so there is added revenue in there.

    In most of these cases... if they did the math on a year by year basis... no one would ever do one of these packages (offer it).

    But it is the multi-year effect that they look at .

    So if this year,they improve the process... and next year they get 200k subscribers... the third year 400k (or what ever)... the $$$ made in year 3 and 4, make up for Year 1 and 2's losses

    Same is true for Sunday Ticket, EI ect... it is not the first years that are planned to make a profit out the door.... it is the longer term
     
  7. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    Where did you see that?
    According to the Chicago sports radio on Monday (or was it Tuesday)...

    The Las Vegas race was the #1 watched sporting event of the weekend.
    (And that included the NCAA selection show... which was #2)
     
  8. AnonomissX

    AnonomissX Godfather

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    Jun 29, 2006
    Las Vegas, NV
    So lets do the math again. The quoted text above indicates Directv pays 1 million per race INCLUDING the 85k to each of the broadcasters. SO:

    37 races x $1,000,000.00 = costs of $37,000,000.00
    cost to each of the subscribers this year: $79.00
    37 million divided by 79 = 468355 subscribers to NASCAR Hot Pass to break even
    So, for every 12659 extra subscribers above 468355 for Hot Pass, Directv would MAKE $1,000,000.00 !!

    How many people do you think subscribed?

    (Mind, I don't have ANY interest in NASCAR or Football, I just find this kind of social urgency to buy a sports package interesting on a human behavior level)
     
  9. DCSholtis

    DCSholtis Up The Irons!

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    In that case youd LOVE me..:lol: I think I sub to almost every sports package out there cept for the soccer and ESPN Full Court packages.
     
  10. bdowell

    bdowell Icon

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    Mar 4, 2003
    I'd be very surprised if DirecTV wasn't getting advertising time (where there would otherwise be local ads) in the national feeds that they can sell and fill as they choose. If that is the case, then they're also reducing the costs of the fees paid over to the broadcasters by selling that ad time.
     
  11. bagleyb

    bagleyb DBSTalk Club Member

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    Sep 14, 2006
    Don't forget the ala carte price of $29 per week. Probably not a lot of people doing that, but I'm sure there are some.
     
  12. kikkenit2

    kikkenit2 Icon

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    Oct 25, 2006
    They were #1 in Vegas because there wasn't much sports on last week. Several sources are reporting that the attendance and tv ratings are down compared to last year. Still #1 motorsport in the US by far.
     
  13. GeorgeLV

    GeorgeLV Godfather

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    Jan 1, 2006
    The only dropoff in attendance was at California. Las Vegas was more sold out than ever.
     
  14. lwilli201

    lwilli201 Hall Of Fame

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    I dont see that much overhead for D*. The in car cameras would be there anyway for the broadcaster use. The broadcaster provides D* with full time SD feeds from five preselected cars. The grafics are probably added at the D* broadcast center. D* probably has to pony up for the extra sat uplink, but they could be using one of there own sats. One or two D* guys in the broadcasters truck to make sure all goes well.
     
  15. jhillestad

    jhillestad Godfather

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    Jan 13, 2007
    I was excited about hotpass until the car ' dj's ' began talking over the in car and pit radio calls..... I did not expect these announcers at all and did not want them on the channel ... I wanted a in track experience of listening to radio calls to the pits and other drivers , I wanted a constant in dash cam with at least on view of the actual race so I could see where the driver was in relation to the race.... but nooooo just a lot of talk and then commercials..... they really did not test what would excite people about this.

    The nascar website is no better.... their scanner stuff on the web is a disaster and nascar does not care.

    So I choose nothing... just watch whatever hd race is on and thats good enough since no one can do it right....
     
  16. bagleyb

    bagleyb DBSTalk Club Member

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    Sep 14, 2006
    The broadcasters make their money off of the number people watching from home, not from butts in the seats. The better the ratings, the more they can charge for commercial air time.

    TV ratings have been steadily declining over the past 2 years.
     
  17. hr20manray

    hr20manray Guest

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    Dec 18, 2006
    I don't know about the number of fans. I'm a big NASCAR fan and I tried it on the free weekend. The bottom line is. . . it stunk. Standard def., people talking over each other, commercials etc.
     
  18. saleen351

    saleen351 Godfather

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    Mar 28, 2006
    Earl there is no way to estimate how many new subs they got because of the package, but it still won't matter, they are loosing money big time and Nascar is tumbling in the ratings when compared to last year which was down 10% from the year prior which was their best season ever. Most tracks don't even sell out any more, the sport is dying out of the minds of us non hard core fans. D is in huge trouble, that 100k would be 50k if people didn't buy it before they saw it.
     
  19. jselinger24

    jselinger24 Legend

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    Jan 27, 2007
    Saleen ... they may not sell out at some tracks, but they still have well over 100,000 people at nearly every event. They are the second most watched professional sport behind the NFL. They are going through some growing pains - yes. The dark picture you are painting is not true.
     
  20. hr20manray

    hr20manray Guest

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    Dec 18, 2006
    The empty seats are a result of the 2 mile tracks. At the 1/2 mile tracks they are packed. At Dover Downs each year they sell out. Around 120,000 or more. However I do think the sport made a mistake fooling with a hugely successful program when they added the "Chase". Towards the end of the year the ones that didn't make it do not race with the same enthusiasm. And the ones that are "in" do not race aggressively for fear of a wreck that might take them "out" of the chase.
     
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