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NFL could soon pull the plug on the DIRECTV deal

Discussion in 'DIRECTV Programming' started by Rob37, Oct 1, 2018.

  1. Nov 8, 2018 #101 of 114
    slice1900

    slice1900 Well-Known Member

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    The difference is that MLBEI wasn't an exclusive, so the revenue was additive. If they offer NFLST for all via streaming, NFLST isn't a Directv exclusive any longer and becomes worth less to them. How much less only Directv could say, but the NFL can only get $750 million from them for it as a non-exclusive, and the NFL makes $500 million from streaming, they lose $250 million a year on the deal.
     
  2. Nov 8, 2018 #102 of 114
    slice1900

    slice1900 Well-Known Member

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    That NFLST U thing is limited distribution since it is students only - this is part of the market testing they've been doing to decide whether they should break the exclusive or not.

    And you can't watch out of market games via the Yahoo sports app, so it is hardly a replacement for NFLST.
     
    dtv757 likes this.
  3. Nov 8, 2018 #103 of 114
    dtv757

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    They must be testing for a while now
    I purchased the student one back in 2015 when I lived in another state

    I get what some of u are saying but just don't make NFL free it will lose value

    MLB TV is free for tmobile customers so that's est 70million people . So its value/ exclusivity is not the same any more . Any one who has a friend on tmo can get an MLB TV account
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  4. Nov 8, 2018 #104 of 114
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    As fraud increases prices will increase. Right now the level of fraud is relatively low ... most subscribers are paying for their own service. It may cost more to go after the cheaters than they are losing on subscriptions. But if the subscription count drops dramatically (such as the NFL losing their $1.5 billion bulk subscription by DIRECTV) expect more attention to be paid to making sure people are not getting the content for free.
     
  5. Nov 8, 2018 #105 of 114
    dtv757

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    I guess the good and smart thing about NFL ST is it only allows 1 log in at a time

    Most other online services allow multiple logins :
    Netflix, wwe, MLB etc .

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  6. Nov 8, 2018 #106 of 114
    the2130

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    Yes, that's right. A separate streaming package similar to what MLB offers would make Sunday Ticket non-exclusive to DirecTV, which would make the package less valuable to DTV. But when you consider the number of subscribers out there who don't have DTV, including cord-cutters, it could open up a huge new revenue stream for the NFL.
     
  7. Nov 8, 2018 #107 of 114
    slice1900

    slice1900 Well-Known Member

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    How many people are there who want to watch out of market NFL games badly enough to pay at least a couple hundred bucks a year, but are unwilling/unable to get Directv? Most fans hardcore enough to spend that money already have NFLST, unless they simply can't get Directv where they live.

    They are hardly going to open up a big market from cord cutters - they are pretty much 100% non sports watchers. If you watch sports you can't cut the cord without missing out on a LOT of stuff.

    How many posts have we seen here from people who say the only reason they subscribe to Directv is for NFLST? It drives subscribers to Directv - that's why they are willing to pay $1.5 billion a year for it. The only subscribers not being driven to it don't have the option - those apartment dwellers etc. are the only ones you pick up. And I have to wonder if a really hardcore fan wouldn't take ability to get Directv into account when leasing an apartment or buying a house...
     
  8. Nov 8, 2018 #108 of 114
    the2130

    the2130 Member

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    slice1900, you may be underestimating the number of non-DTV subscribers out there who would be interested in getting NFLST if they could buy it without a DTV subscription, particularly if it's offered at a lower price than through DTV, as is the case with MLB.TV compared to Extra Innings.

    Your comment about 100% of cord cutters being non-sports fans is also suspect. Not all sports fans follow all sports. It also depends on whether you follow in-market or out-of-market sports teams. If you are strictly a baseball fan and follow an out-of-market team, you might be able to cut the cord and still see most of your team's games. If you follow an in-market NFL team and you're not a fan of other sports, you could easily cut the cord and still see all of your team's games. It's true that there are more obstacles to sports fans cutting the cord than non-sports fans, but I think it's an exaggeration to say 100% of cord cutters are non-sports fans. In any event, it will be interesting to see how this plays out.
     
  9. SamC

    SamC Hall Of Fame

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    Of course there are absolutely no absolutes, but, at the margin the average a general lack of interest in sports is the main motivator in "cord cutting".

    Yes, it is possible to watch some sports OTA, or to pay for individual sports (mainstream and niche) on various plans, but the $$ for doing so just do not add up. If you like sports, you like others who do not subsidizing your viewing via paying cable/dish for things they don't watch.

    In any event, this is just the NFL making another money grab. It is threatening DirecTV, so DirecTV (which means its customers) will pay yet more for the package.
     
  10. the2130

    the2130 Member

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    Yes, it's the NFL looking for new revenue, which is what they always do. Streaming is where the growth is. Satellite and cable subscriptions are flat and even declining. It seems pretty clear that the NFL sees streaming as an opportunity to bring in new revenue. Don't be surprised if they do something similar to what baseball has done with MLB.TV and Extra Innings.

    This is not necessarily bad for NFLST subscribers. It could take the pressure off DTV to keep paying more and more to keep the package exclusive and to keep raising the price of the package.
     
  11. slice1900

    slice1900 Well-Known Member

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    They aren't "threatening" Directv. The contract they have with Directv allows them to pull out early (after next football season) instead of the contract end date after the 2022 season. If they exercise that, the NFLST contract is over and they would open negotiations just like they did after the 2014 season when this contract was signed.

    Basically it is a one-time 'early out' clause they can unilaterally exercise. Originally it was supposed to be exercised after this season, but they asked Directv if they could push back the end date by a year to give them more time to consider their options.

    Sure, its a money grab. But so is everything when it comes to TV contracts. ESPN tries to get the most money they can, the Big Ten does, HBO does, TNT does, MTV does, etc. The NFL is a business like any other.
     
  12. dod1450

    dod1450 Legend

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    I don't care if the NFL pull the plug from Directv. I only watch football OTA, but with all the political BS I don't watch TV that much.
     
  13. dtv757

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    Exactly that's why I hate when my team is on local TV.


    Speaking of other providers I bet local channels would throw a fit if they could not advertise cause NFL gave Sunday ticket to another provider

    If they do consider I hope they do with the TELCOS :)

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  14. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The TV contract is not in question ... ABC, NBC, CBS and FOX will keep their games. The question is out of market game carriage.
     

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