DirecTV / Cable & NFL Sunday Ticket

[grooves12]

Nah, if the NFL worked out a fee for every subscriber, they could make more money. The providers could use it as a loss leader to get subscribers, but the NFL could make even more monry.

MLB offers all games on cable and on the INternet for significantly less with more games. I bet they are not losing money.

How can they use it to gain subscribers, if every other cable co has it???

Well, if you haven't noticed the MLB IS losing money. They tried to get rid of two teams two years ago but were forced into keeping them by the players union. The interest in MLB is also waning, and they are using it as a way to try to drum up interest. The NFL is in the opposite situation... demand is MUCH higher than even the amount they are currently selling, and they would like it to stay that way.

Also... have you heard anything about anyone giving MLB millions or BILLIONS of $$$ for the rights to carry their games?? I don't think so... so, the NFL is doing something right, and they will continue with business as usual, because it is obviously working.

 

[flintsilver7]

You're all making it seem as if the continued financial success of the local sports bars, supermarkets, and even the NFL itself hinges on DirecTV's exclusive contract. There are plenty of bars that do not carry NFL Sunday Ticket and they are able to survive and even excel.

Here's the thing. We live in a capitalist system. That means that if you do not have a product that people want more than your competitor's product, you will fail. If your business hinges entirely on carrying NFL ST, for example, you must adapt to stay alive. This means lowering prices, providing better food, or some other deal. I can personally say that plenty of people will STILL go to bars because it's convenient to watch multiple games on multiple TVs rather than multiple games on one TV.

This would ultimately have a minimal impact on most of the businesses. Our power as consumers is to demand something else. An organized internet movement to get Sunday Ticket on cable would have a lot of power.

 

[sn9ke.eyes]

MLB can't charge that much for exclusive rights, because no one would pay for it. The NFL is getting what the market will bear.


Here's what everyone is missing in this picture, the national networks, like CBS/FOX/NBC/ABC don't want cable to have the Sunday Ticket because more people have cable than directv. If everyone could get Sunday Ticket, then a lot of people would not watch their local affiliate, they would watch some other game. Then the advertisers don't want to pay as much money for commercials because the viewership isn't as high.

If you think what Directv is paying the NFL is a lot, it's chump change compared to what CBS and FOX pay.

Fox will pay $4.3 billion, or $712.5 million per year for the NFC games, the source said, while CBS will pay $3.7 billion, or $622.5 million a year.

The NFL's average take will rise to $400 million, more than three times the $130 million it is getting from DirecTV this season under an expiring five-year contract.

$712.5 million FOX
$622.5 million CBS
$400 million Directv

The NFL won't do anything to upset the network TV money coming in. Directv still has a smaller subscriber base, so it's workable.

If you support your local team, then why do you care ? If you are remote or a huge NFL nut, then you will pay the money anyway.

Trust me, for the first 20 years of my life I was lucky to see one or two Dolphin's games a year on TV. I'll gladly pay to see them all.

 

[mixmaster_matt]

When I lived in NY I got directTV when the whole controversy of YES network on cable TV. They wouldn't offer it to cablevision customers so I got DirectTv to watch NJ Nets games. Me and my father split the NFL SUNDAY TICKET, and it was well worth it. $180, so $90 a piece, for season tickets on my couch. Well worth it to me, and the directTV was actually $7 cheaper than cablevision. Now I live in South Florida and have actual season tickets, but I would not be bitching and moaning if you had to pay $200 to see the dolphins all season long.

 

[Roman529]

I live about a mile from a sportsbar called the Overtime here in Colorado....they have about 40 tv's including three big screens (10 footers)...it is mainly a Steelers bar during the NFL season but they show every game and they have the best food. I also can go to a Dolphins bar here and we have as many as 60 Dolphin fans showing up for games...we even get together to watch the exhibition games...I think a bar beats getting Directv as they often black out certain games, whereas bars seem to be able to get around some of this. The only negative about bars is you have to take a shower to get rid of the smoke smell afterwards, but it is much more fun watching games with other fans, especially Dolphin fans....when I hit the lottery I am opening up a Dolphins bar here and anyone wearing a Jets, Bills or Patsies jersey is not allowed in.

 

[PhinKev]

How can they use it to gain subscribers, if every other cable co has it???

The same way that any retailer does, you offer it for less and take a loss with the hope of gaining subscribers in the long term. The term for this is loss leader.

If you don't think people do this for football, the networks do it all the time. They can't afford football based on the amount of avertising they sell. It is a loss. BUt, they do it to get people to watch the network and market the rest of their line up. They admit as much.

Well, if you haven't noticed the MLB IS losing money. They tried to get rid of two teams two years ago but were forced into keeping them by the players union. The interest in MLB is also waning, and they are using it as a way to try to drum up interest. The NFL is in the opposite situation... demand is MUCH higher than even the amount they are currently selling, and they would like it to stay that way.

That is inaccurate. Some MLB teams are losing money. Many are doing just fine. Interest in baseball is up and has been going up for the last several years. The MLB ticket is around $150, so I don't think they are giving it away to drum up interest. Less than football, but not cheap either.

Also... have you heard anything about anyone giving MLB millions or BILLIONS of $$$ for the rights to carry their games?? I don't think so... so, the NFL is doing something right, and they will continue with business as usual, because it is obviously working.

Sure, the Yankees get millions just for the local broadcast rights. I agree that the NFL is the best property, but lets keep things in perspective.

I think the bottom line, as someone observed above, is the NFL chooses not to give the NFL ticket a wider distribution for reasons that have to do with the value of network contracts. Other sports play more games and have local contracts that allow for a different model.

 

[grooves12]

The same way that any retailer does, you offer it for less and take a loss with the hope of gaining subscribers in the long term. The term for this is loss leader.

If you don't think people do this for football, the networks do it all the time. They can't afford football based on the amount of avertising they sell. It is a loss. BUt, they do it to get people to watch the network and market the rest of their line up. They admit as much.

I understand the term and how it works... in fact that's pretty much how DirecTV uses it now, and why they are willing to pay for an exclusive contract. If EVERY provider had it... it no longer has that power. It becomes a commodity at that point that you just HAVE to have in order to even compete. (Much like ESPN and many other basica cable channels are now.) But, it has no real value as a revenue generator or subscriber-loss prevention tool.