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Hall Of Fame
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Highlights.. New Company will be a Streaming Provider. Directv did not bid as we knew
now will it be on directv and cable like the other sports?
now will it be on directv for commercial only with some like Joe Hand Promotions
what about non commercial homes for people who can't get good internet?

Will people have to get an Canadian sat dish in the USA to get it?
 

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Hall Of Fame
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now will it be on directv and cable like the other sports?
now will it be on directv for commercial only with some like Joe Hand Promotions
what about non commercial homes for people who can't get good internet?

Will people have to get an Canadian sat dish in the USA to get it?
What? It said none of that

It won’t be on Directv or any cable provider as of this moment unless Apple/Disney or Amazon contracts it with them

It’s going to be on either Apple TV+. Amazon Prime Video or part of ESPN+
 

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Cool Member/Supporter
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I reached out to the author of the CNBC article on Twitter, and he told me that while DirecTV is NOT in negotiations with NFL regarding Sunday Ticket, DirecTV, it plans to reach out to the winner to "discuss ideas".

Here is the question I asked and his answer on Twitter:

Question: "Is the potential for @DirecTV to continue to carry NFL Sunday Ticket and give the proceeds to the winning bidder (as mentioned in your article a couple weeks ago) still alive or is @DirecTV totally out after this season?"

Answer: "Unchanged. DTV isn’t negotiating with the league. It plans to discuss ideas with the winner, whenever one is named.
 

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Beware the Attack Basset
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ESPN is one of the reasons people are keeping MVPD subscriptions, for now. What other network on an MVPD can the same be said of?
In what way does this make ESPN's approach a good thing for the consumer?
 

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Beware the Attack Basset
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Again That will require a separate agreement.. ESPN could want 2 billion from Directv and they tell them to take a hike
This is key. What DIRECTV hopes to do doesn't amount to a hill of beans. What they're offered, if anything, is entirely up to the winner.

I don't think there's any reason to assume that DIRECTV will get a better deal than anyone else.
 

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What happens to cable if they drop ESPN?
You might as well say "what happens to cable when ESPN leaves". That is what is being suggested here ... ESPN walking away from offering their primary channels exclusively via MVPD contracts and selling direct to consumer. That breaks the partnership arrangement that ESPN has had since they launched the network. Do you believe that ESPN will be able to force MVPDs to pay the high prices of carriage AND lessen the value of their product by selling it separately?

I believe MVPDs faced with competing with a DTC offering will drop the rates they are willing to pay and let their customers subscribe direct to the ESPN channels if they are not offered a reasonable rate. I believe the only ones willing to pay will be the MVPDs who serve customers a DTC offering would not effectively serve. Or MVPDs willing to pass on higher prices to their subscribers until the last subscriber leaves for less expensive options.
 

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ESPN could want 2 billion from Directv and they tell them to take a hike
Are you suggesting that ESPN+ on DIRECTV for Business is a flat rate where DIRECTV pays ESPN the same amount regardless of the number of business they serve?

If DIRECTV for Business is able to continue delivery of NFL ST I expect they will be paid a portion of the the subscription fee collected by whomever has the rights. A small portion - enough to cover their costs and little more. The negotiation will be how much of the subscription fee DIRECTV is paid for delivery.
 

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This is an old trope. It really isn’t true.

ESPN in the bundle is important to Disney, but it’s more important to the MVPD. Over 1/3 of MVPD subscribers watch ESPN at least once a week. It is also the most watched channel in prime time for 18-49 year olds, and second most watched cable channel overall. What happens to cable if they drop ESPN?

ESPN isn’t the problem with the bundle, and ESPN will do fine if MVPDs decide to drop them. For ESPN, they probably need a fee of $20 per month to match revenue lost from cable to total DTC model. A significant number (maybe 1/3?) of MVPD subscribers could drop the MVPD subscription, get ESPN DTC and save a lot of money.
Piecing together info from various sources, I estimate that all of the ESPN channels together account for about $13/mo out of the average cable TV bill. Let's imagine that suddenly cable TV disappears and now the only way to buy ESPN is through a direct-to-consumer standalone app. If only about 1/3 of cable TV customers care enough about ESPN to pay for it, then we can expect that those folks will be the only ones who might buy this standalone ESPN streaming service. But that means that ESPN will have lost 2/3 of their paying customers versus what they were getting when ESPN was a non-optional part of everyone's cable bundle! So to get the same amount of total revenue, the cost of this ESPN standalone service would need to be 3 x $13. Now how many of those former cable TV subscribers do you think love ESPN so much that they'll pay $39 per month for it?! So maybe instead of ESPN getting back 1/3 of their former subs, they get back only 1/4. But that means they'll need to charge 4 x $13, so $52 per month! Which, in turn, causes even more former ESPN fans to call it quits and walk away. See how this works?

This is why I say that ESPN's salad days are in the rearview mirror. I can't see any way that they'll ever be as profitable as they used to be as more and more US consumers ditch the cable bundle.

The cost to carry sports, especially big popular ones, is super-expensive. But even in the new direct-to-consumer (DTC) streaming era, companies can still get non-sports fans to subsidize the cost of a limited amount of sports that they don't watch. I mean, obviously, Netflix carries all kinds of programming, most of which any one particular household never watches. This is how the economics of content bundling -- whether in the traditional cable bundle or the new DTC app paradigm -- works. You offer a buffet of varied content to appeal to a broad group of customers, but no one eats everything on the buffet.

But if a big general entertainment DTC service like Netflix, HBO Max, Disney+, Prime Video, Apple TV+, Paramount+ or Peacock is going to put live sports content into their service, they're going to want it to either be relatively cheap (e.g. foreign soccer, in order to pick up incremental subs who are big fans of that sport) or they're going to want it to be popular enough to pull in not just hard-core fans but also casual sports viewers (e.g. any NFL game, playoffs/championships for other major pro and college sports -- World Series, March Madness, Stanley Cup, College Football Playoffs -- plus Wimbledon, The Masters, Daytona 500, etc.). Because if they're spending big bucks on a game, they want it to appeal to as many of their customers as possible. If the cost of my streaming service bumps up a buck and they tell me it's to cover sports, but I actually watch those sports, well, I'm much less likely to balk at the price hike.

But what happens to all the other stuff, all those other expensive individual sporting events that don't appeal to a large enough number of viewers to allow them to be stuffed into a general entertainment DTC service? All those regular season MLB, NBA, NHL, and college sports games? Because those big DTC services aren't going to want to add all that stuff, making the same mistake that the cable bundle did, i.e. stuff way too much expensive sports content into the bundle and force it on all subs, whether they watch it or not, thereby driving up the price of the bundle so much that the non-sports-fans just cancel. Netflix, HBO Max, Disney+, Prime Video, etc. all have to be thinking about that. Because if they load up on too much sports and then pass those costs on to customers, well, some of those customers will shift to a cheaper competitor with less sports. It's very easy to drop Disney+ and replace it with HBO Max, or vice versa.

The only solution I see is for all that other sports content to get bundled into focused services that appeal to the hard-core fans of those sports. And they'll pay dearly to be able to watch all those games! How much, of course, remains to be seen. I think what we'll eventually see is that major sports leagues will have to settle for less total TV revenue, which will of course mean reduced costs (i.e. less ridiculous salaries for athletes) or reduced profits. I suspect it'll be some combination of all the above. But these economic adjustments will take years to work out, which gives all parties time to adjust to the new realities they face. Which is that cable TV was a bubble inflated by another bubble inside it -- televised sports -- which was inflated by another bubble inside it -- greedy athletes, team owners and leagues.
 

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Between Apple and Amazon, I've always thought Apple was the likelier winning bidder since Amazon is already shelling out $1 billion per year for Thursday Night Football. Because Amazon already has a key piece of the NFL, they'd get less incremental value from buying NFLST than would Apple, who has zero NFL content yet.

That said, I don't totally discount the idea that both Apple and Amazon balk at the price and walk away from the table, leaving the NFL to sell NFLST itself. Although I don't think that scenario is at all probable. Because I think Apple will be willing to pay at least a little more for NFLST than what the NFL could actually earn off it via direct-to-consumer sales, i.e. Apple is willing to lose at least a little money on it to burnish their brand and draw more subs to Apple TV+.
 

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Hall Of Fame
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Between Apple and Amazon, I've always thought Apple was the likelier winning bidder since Amazon is already shelling out $1 billion per year for Thursday Night Football. Because Amazon already has a key piece of the NFL, they'd get less incremental value from buying NFLST than would Apple, who has zero NFL content yet.

That said, I don't totally discount the idea that both Apple and Amazon balk at the price and walk away from the table, leaving the NFL to sell NFLST itself. Although I don't think that scenario is at all probable. Because I think Apple will be willing to pay at least a little more for NFLST than what the NFL could actually earn off it via direct-to-consumer sales, i.e. Apple is willing to lose at least a little money on it to burnish their brand and draw more subs to Apple TV+.
Let's say the cost is very high and need to sell it like the other sports steaming + on cable / sat tv?
the nfl can have direct-to-consumer sales and let directv / dish / cable (indemand) sell it
 

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In the meanwhile, the 2022 slate has been updated on the big, bad NFL Sunday Ticket streaming app:
Hockey protective equipment Sports uniform Helmet Football helmet Football equipment
 
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Let's say the cost is very high and need to sell it like the other sports steaming + on cable / sat tv?
the nfl can have direct-to-consumer sales and let directv / dish / cable (indemand) sell it
Yes, that's possible. In fact, should the NFL end up selling it directly to consumers (via their own NFL app), I see no reason why they wouldn't also seek non-exclusive distribution partners (cable and satellite operators and maybe streaming partners too) who would be resellers and billers and just take a cut of the take, much the same way that the MLB's and NBA's out-of-market packages already work.

But, as I say, I tend to think it's more likely that Apple or Amazon (probably Apple) will give the NFL more for NFLST than it's actually worth on its own, i.e. they'll be willing to lose money on it to further some larger business goal they have. That's the way it always worked with DirecTV, n'est-ce pas?
 

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I doubt that whomever gets NFL ST will be able to resell it via other systems, with the possible exception of distribution to businesses (eg: ESPN+ for business sold via DIRECTV). I don't believe the NFL wants to take the risk on selling NFLST via every platform (they want billions whether or not the end service is viable). Having a partner who could resell would take the risk off of the NFL.
 
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