NFL and DirecTV agree to new 8 year deal for Sunday Ticket

[phinfan40353]

I also really wish they would also offer a one team package of some sort. It's not like having all those games does me personally any good anyway. I Phins almost always play at one when most of the other games are on. There are rarely if ever more than three games on at four and I have the option to watch the national broadcast of two of them.

I would think if they would offer a package such as this for even as much as $100 they would in the end make more money since so many more could/would pay that.

And the small market teams would collapse under the financial strain. It sounds great but the market results of this pricing would be top heavy in favor of the teams with the most fans. I think there is a middle ground, however. I completely agree with the notion and have thought about it for a while.

Satellite and Cable providers face this same delima with normal programming. The large majority of people do not watch all of the channels in their package. But the package is bundled in such a way to generate fair revenue for the smaller market channels. Honestly, if you allowed people to pick individual channels without a base package, most of the channels would go off the air and only the bigger channels would survive (ESPN, CNN, TBS, TNT, etc). It's the package strategy that allows the smaller channels to survive and broadcast to their niche markets.

Simplistically, I've always said it would be nice if they allowed us to pick our team and have it bundled with other team channels to help spread the wealth. Instead of the ridiculous $280 or higher prices for the base NFL Ticket, at least give us the option to pick our team and have it bundled with 3 other game channels in a 4 channel pack for say... $150 ~ $200? Proportionately it is not equal pricing, but it is less expensive and may entice more subscribers.

As stated earlier in this thread, within 8 years this product will change to face market demands and catch up to technological offerings being exploited by other channels. In 8 years, DirecTV may be desperate to hold off competitors biting chunks out of their market share.

Wireless technologies, game streams, delayed broadcasts, online stats and game trackers AND Team/Division/Conference channel needs will force DirecTV to rethink this product.

Plus, I see something bigger coming... I think in 8 years, the NFL Sunday Ticket will vanish because the NFL will be directly broadcasting it's own games on it's own FULL network with full individual game channels. The NFL Network wasn't just a nice little effort to have their own channel, I think the NFL is maneuvering to be completely vertical in it's content delivery. And they will be able to eliminate JUST having the NFL Sunday Ticket on DirecTV. I think they will offer it to ALL major providers.

Look at the SEC Network model. This is the future.

ATT bought DirecTV because they are abandoning their "copper" infrastructure. It's too expansive and outdated to update. Those phone lines at your house are obsolete. ATT's suburban and rural markets are completely maxed out in bandwith capacity. The UVerse product can't grow. This is why cable (Time Warner, etc) has found a resurgence. They've replaced their backbones with fiber in most cities. They can easily upgrade "at the pole" selectively when it is economical to them. Because they can facilitate 100+ Mbps down with their current copper at the pole and fiber on the backend. ATT's copper infrastructure maxes around 15Mbps in most markets (esp. rural). Compression technologies will help in the short term. But long term, copper is dead.

ATT bought DirecTV for bandwith and content delivery expansion. But the prized jewel of the NFL Sunday Ticket is losing it's luster. I suspect this to be the last NFL Sunday Ticket marketed solely on DirecTV. Those days are over. They have 8 years to figure out a new game.

As for the "Buy a Team Channel" dream, it may come in time in some form. But due to revenue sharing in the NFL, small market teams will always have a great impact on product offerings branded by the NFL. Which it should. I don't think any of us want to see the NFL's revenue sharing model go away. It has changed the game for the better by saving small teams from financial ruin. Talent gets spread around to all teams. And everyone has a chance. Fair play is the best model.

 

[Digital]

So you are able to customize your package to your liking? Say I wanted only ESPN, NFL Network, CNN, National Geographic and Comedy Central, and get that at a fair price since I am only subscribing to 5 channels. Could I order such a package?

That's what I mean by "a la carte" cable subscription. Actual choice by the consumer. Not being forced to pay for 40 additional channels that I will never see.

Here's how television distribution works. Each cable channel sells it's programming as a channel package to distributers. So. Cable company like Comcast or Time Warner or satellite company like Direct TV or DiSH buy a channel's programming. Then they repackage and resell it to consumers.

For instance, ESPN costs more than $13 per month to Comcast, so if they resell it to you, they need to charge more just to break even for their costs. So let's say they charge you $17 for ESPN. That would be very cheap a la cart pricing.

Then we add NFL Network for like $5 a month. Then CNN for $12. Then National Geographic for $5. Then Comedy Central for $3.

Your a la cart programming now costs $42 a month. That's what consumers always wanted and the FCC has said it would mandate for the last 10 or so years.

The problem is industry capture. We consumers have very little pushback on the President who appoints these FCC people. It's rarely many people's top issue. But, the content distributors like Comcast care very much and contribute to campaign funding to both sides to make sure a la carte never happens. It gets delayed every year.

 

[El Calebra]

In 8 years DirecTV will be a DINOSAUR. It already is by today's standards. It's an old technology company that would be DEAD without the NFL. That's why they paid 50% more for the contract than they did last time - they know that they would be done without the ticket.

It may be old and one day will be obsolete, but I would bet my house your post and my post were transmitted by satelight somewhere to make it here.
Even cable providers get their feeds from satelight.
Satelight can reach most anyone. Where a wired connection cannot. That would include fiber optic.

I have been with Time Warner cable for 6 years and just recently signed with Direct Tv. I am extremely happy with the move and the new genie is the best thing that has ever happened to us. I am very happy about this deal and have had no issues with the tv cutting in and out like some say. time warner would get choppy on a perfect sunny day and it was wayyyy more expensive.

We have Genie too, but our internet is to slow to use it. We have DSL. No cable available in our area. We are lucky to see 1.5 mbps.
I love DirectV and satelight in general, but even the smell of rain knocks ours out. That is my main gripe. Weather or even a hint of weather.

RedZone is great for commercials and when the Dolphins are not playing. It keeps you up on every game being played at the time.
I did not buy Redzone this year as it saved me $100.

 

[maralieus]

I think I worded my initial statement rather clumsily. It isn't really about the technology, but rather the distribution model. It's going the way of the dodo. In 8 years, it will seem like what the mail service feels like today, a relic of a bygone era.

With the rise of hi speed internet connections, many people are beginning to cut cable TV altogether. I haven't had a cable subscription in 3 years, Netflix and Hulu are all I need for my entertainment fix.

It's often been a common complaint that people don't want to pay out of the ass for 300+ channels of which they watch maybe 4 regularly. Nowadays, there are other options for folks who don't want a bloated TV service.

it's getting worse and worse for cable providers each year, and they protect themselves with their cable internet service. DTV doesn't have that luxury.

In this very thread there are several posters who appear to be tied to DTV mostly because of the ticket. I am certain that if DTV lost the NFL contract they would be out of business in 5 years.


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I agree. They'd be screwed if they lost the nfl contract. It's all they got. Seriously. What other reason would people have to use dtv at this point. I won't support that craps though. Forcing people to subscribe to your vs service by tacking on something they want and can't find anywhere else is kinda shifty, especially when they are the ones that created this nfl "monopoly". Football should be a right for ALL to watch. Sadly I think that by the time this 8 year contract is up there will be very few games that can be watched without dtv or cable, if any. TV SHOULD BE A LA CARTE! FOOTBALL INCLUDED!!

 

[LouPhinFan]

I have Time Warner Cable now but used to have Direct TV. Direct TV was a much better service overall. Their tech (DVRs, etc) were light years ahead of what cable has. Even DTV's Genie is better than cable's multi-room DVR tech. I would definitely say that DTV's HD picture is better than cable's HD picture. Yes occasionally the DTV signal goes out but if your dish is set up correctly and there's nothing blocking it, then it should only go out in extreme weather events (you should have a spare digital antenna anyways for safety reasons).

They only reason I don't have DTV now is price. I'm getting a better price with TWC even though my DVR is slow as crap and is probably about 5 years old when I got a year ago. As soon as my kids get out of daycare (that's a whole other mortgage payment) and into elementary school then I'm going back to DTV. They send me email offers everyday. I never had a problem with their customer service like I do with cable's.

 

[BillsFanInPeace]

Ah, I didn't know AT&T was acquiring them. Quizzical move, IMO.

However, it looks like the NFL deal is a big part of the reason why AT&T is interested in buying them: http://www.cnet.com/news/directv-secures-nfl-sunday-ticket-deal-imperative-to-at-t-merger/

Good now that this is done. ATT will go through with the acquisition and Hopefully this time next year I will have Sunday Ticket on my Uverse and Phone like they have talked about.

 

[phinfan40353]

The entire cable complex will cease to exist in the next 20 years or morph into an internet delivery portal only. They'll kick their feet the whole way and block content (ie Sunday ticket), but eventually gravity will prevail and consumers will have their way, same way as iTunes did away with those rip off albums we had to buy to get one song.

This is closer to reality more than most realize.

There are larger battles in play most consumers don't care about, but will shape the future digital age. The main battle grounds taken shape right now are content vs. delivery. As companies strive be more vertical, content companies will buy delivery companies and so forth (hence, ATT buying DirecTV).

However, part of your statement is not completely accurate; "cable complex will cease to exist in the next 20 years". In fact, we will see new growth in this sector during those 20 years.

No matter how many wireless devices exist, there is ALWAYS a need for land based connectivity. It is the backbone of the internet and modern communications. Wireless technology is better suited at the ends of the delivery branch; closest to the consumer. It helps land based infrastructure eliminate from the "pole to the house" or "curb to the house". But there is still a lot of "cable" in the equation. It's a bandwith issue. Pure fiber can deliver vast quantities of bandwith that wireless simply has not achieved.

In fact, some people might be puzzled to discover Google has been developing fiber based networks in test cities around America (Houston, for example) that can deliver up to 1Gbps to your home. Why? Bandwith, bandwith, bandwith.

This is why companies like Time Warner Cable will become more valuable assets moving forward. As ATT withdraws from the "copper" business, they have decided to take to the skies with DirecTV. It was simply an easier financial decision to buy DirecTV with its content delivery AND satellite broadband than it was to sink untold billions (maybe trillions) into upgrading all of their copper installations to fiber.

Cable as a content provider will be vanishing. But as a bandwith commodity, they are in high demand.

Lastly, there is also wars waging over wireless frequencies that eventually bring cable companies back into play. There is only so much wireless frequences to go around. Blame nature and the FCC.

 

[truedolfan57]

What fun is it to watch a game when you already know the outcome?

Some people like to just watch football. And not just to see who wins, but how they play. For instance, Green Bay. Watch and see how they play and see how they could match up with miami.

 

[phinfan40353]

In regards to the content war and how important the NFL Ticket is to DirecTV, I will share with you a small conversation I had with my DirecTV installer just recently (I boycotted cable/satellite for 3 years) :).

We were talking about "new customers" and how NFL Sunday Ticket impacts there business. On a side note, I asked him when DirecTV was gonna get the SEC Network. At this time, the announcement for DirecTV to pick up the SEC Network was happening a few days later (as I learned).

He said, "DirecTV HAD to pick up the SEC Network". "In fact, DirecTV had to crawl back to the table and beg SEC Network that netted SEC getting THEIR terms."

Why?

He said in the 3 weeks before SEC Network was announced on DirecTV, 75% of the customers they lost were switching to Dish BECAUSE of the SEC Network. Not only did DirecTV agree to carry SEC Network, they sent promotional switch offers to those lost customers inviting them back with new deeply discounted deals and paid for their termination with Dish.

I also heard from him then, before the new Sunday Ticket deal was announced, that ATT was sending word down the DirecTV ranks that DirecTV would not see any branding or operational changes for 5 years. Basically, they didn't want to mess with what worked.

If the NFL Sunday Ticket doesn't get renewed in 8 years, ATT/DirecTV better invent a new wheel.

 

[Daytona Fin]

he probably means game rewind

No, I meant game pass.

---------- Post added at 06:00 PM ---------- Previous post was at 06:00 PM ----------

You can watch the live games?

Yes

 

[DuderinoN703]

I really enjoyed getting the ticket for free when I first signed on. Since then I pay about $40 a month for 6 months and I don't really enjoy how much it is but I have no choice other than going to a bar and wasting money there.

 

[aquabob]

Yep, they will be forced to eventually. The disruption by Netflix, Youtube, etc. is already making an impact, but I guess not enough for them to give up on their current model. But this resistance actually plays into the whole Net Neutrality debate. They are trying to turn the open internet into the same model as cable TV service tripe.

Last year was the first year ever the cable industry had a net negative growth rate in customers. It's already begun. I can't wait until these monopolies go the way of the horse and buggy.

 

[aquabob]

This is closer to reality more than most realize.

There are larger battles in play most consumers don't care about, but will shape the future digital age. The main battle grounds taken shape right now are content vs. delivery. As companies strive be more vertical, content companies will buy delivery companies and so forth (hence, ATT buying DirecTV).

However, part of your statement is not completely accurate; "cable complex will cease to exist in the next 20 years". In fact, we will see new growth in this sector during those 20 years.

No matter how many wireless devices exist, there is ALWAYS a need for land based connectivity. It is the backbone of the internet and modern communications. Wireless technology is better suited at the ends of the delivery branch; closest to the consumer. It helps land based infrastructure eliminate from the "pole to the house" or "curb to the house". But there is still a lot of "cable" in the equation. It's a bandwith issue. Pure fiber can deliver vast quantities of bandwith that wireless simply has not achieved.

In fact, some people might be puzzled to discover Google has been developing fiber based networks in test cities around America (Houston, for example) that can deliver up to 1Gbps to your home. Why? Bandwith, bandwith, bandwith.

This is why companies like Time Warner Cable will become more valuable assets moving forward. As ATT withdraws from the "copper" business, they have decided to take to the skies with DirecTV. It was simply an easier financial decision to buy DirecTV with its content delivery AND satellite broadband than it was to sink untold billions (maybe trillions) into upgrading all of their copper installations to fiber.

Cable as a content provider will be vanishing. But as a bandwith commodity, they are in high demand.

Lastly, there is also wars waging over wireless frequencies that eventually bring cable companies back into play. There is only so much wireless frequences to go around. Blame nature and the FCC.

Hence why I said they will morph into internet delivery only (for the wired connections). Cable sucks as a content distributor. It is their local monopolies that keeps them in business. If I want cable, I have no other option but comcast. I can't get a satelite reception where I live. God I hate this DTV deal. I'm willing to spend the money but DTV still blocks me. I hate them more than you can imagine.

 

[WeVie]

I have paid $180 for the nfl ticket and superfan package. Every year I call and complain to cancel. One year got for free, once for $100, but. I tell them I won't pay over $180 done that every year but one since the charge raised above that. Had the ticket since 2000.

I haven't paid for Sunday Ticket in six years. I get it for free in addition to other credits. This year I got $30 off a month for a year and the two years before that I got a $200 credit and $20 off a year.

 

[WeVie]

And the small market teams would collapse under the financial strain. It sounds great but the market results of this pricing would be top heavy in favor of the teams with the most fans. I think there is a middle ground, however. I completely agree with the notion and have thought about it for a while.


As for the "Buy a Team Channel" dream, it may come in time in some form. But due to revenue sharing in the NFL, small market teams will always have a great impact on product offerings branded by the NFL. Which it should. I don't think any of us want to see the NFL's revenue sharing model go away. It has changed the game for the better by saving small teams from financial ruin. Talent gets spread around to all teams. And everyone has a chance. Fair play is the best model.

I admit that I don't know a lot about the revenue sharing model, but even if they offered a team package, why would they not share the revenue the same way? How would this hurt small market teams?