NFL & DirecTV extend Sunday Ticket Deal

kidhawk · Oct 1, 2014

http://www.nfl.com/news/story/0ap3000000404000/article/nfl-directv-extend-nfl-sunday-ticket-in-multiyear-deal

There aren't too many details listed, so I doubt it changes much of anything other than the end date of the deal.

RolandDeschain · Oct 1, 2014

Damnit, NFL. Just sign up with Netflix or YouTube already and be done with it. Stop caring 100% about only your own pockets, and throw us 1% or so. Caring 99% about your own checking account isn't good enough?

MizzouHawkGal · Oct 1, 2014

From what has been reported it's 8 years/12 billion dollars which is 500 million more per year then previously.

minormillikin · Oct 1, 2014

When I had Sunday Ticket and discovered the Redzone channel (originally part of the package), I realized all I need is the Redzone Channel.

... Unless I was out of market... Then I'd have to get Sunday Ticket again.

bmorepunk · Oct 2, 2014

RolandDeschain":1ay6gurm said:
Damnit, NFL. Just sign up with Netflix or YouTube already and be done with it. Stop caring 100% about only your own pockets, and throw us 1% or so. Caring 99% about your own checking account isn't good enough?

The NFL's revenue this year should be about $9 billion. They earned roughly $1 billion from the DirecTV deal this season. To put this in perspective, ticket sales made up about $1.5 billion of their revenue last year.

I doubt the NFL is going to put their product on a medium that will pay a fraction of that $1 billion since it represents a little over 10% of their revenue, especially since there are no obvious returns coming out of it besides what Netflix or YouTube would pay them.

Largent80 · Oct 2, 2014

Not good news really. I do have DirecTV and ST, and still think it would be better in the open market.

HawkinNY · Oct 2, 2014

You can stream every game online and If more people did that it would close out direct tv and then the nfl would have to listen to offers from other providers. Comcast bid for the sunday ticket like 8-9 years ago and the NFL didn't even look at it. There was this whole big thing in front of congress and they asked the NFL rep why and he didn't have an answer. THE NFL DOES NOT CARE ABOUT THE FANS! We all know that. And it will never change unless WE the fans stop caring about the NFL. I mean really our taxes pay for the stadiums and when they are not sold out they don't let local TV play the games.

Cartire · Oct 2, 2014

I was really disappointed when I heard of this. 2 years ago, there was a tease that Google was interested. At the time, I thought it was a sure thing. As Google could easily match any offer on the table. And with Smart TV's and devices like Apple TV/Roku/Chrome Cast becoming more common place, it just makes more sense to cross over the the streaming realm.

I obviously dont know the math here, but I would assume that the NFL could easily make more by allowing an open-market and each provider who wants to have a license for Sunday Ticket, pay $500,000,000 a year. I guarantee at least 3 providers would take the deal, which would equal the current revenue for it. But the truth is, even more would buy the license and the NFL would make more. At the same time, because the license is cheaper, they could sale the packages for cheaper. There by helping the consumer as well. Bringing in more viewers. So its a bit confusing. As someone mentioned previously in the thread though, there has always seemed to be something up with DirectTV and other providers not even getting a fair look. Im thinking some under-the-table handshaking is occurring with these deals.

Seahawkfan80 · Oct 2, 2014

Unfortunately it is basic economics. More competition is bad for the nFl in this case. If you get cable channels to offer this, then Direct tv would not have a "monopoly" on this programming. It is NOT a monopoly as it is because of Fox and NBC and CBS having direct access to the game in their area. But they can monopolize the SYSTEM that some want to have. That feeds the money into one coffer...directtv and NFL. Streaming it.....may help in the long run. But it will take a lot...A FREAKING LOT...of people to help change that situation. And I feel the status quo will not change for the most part. Most people will just say that something else is way more important. Fishing is gonna get important very soon.

RolandDeschain · Oct 2, 2014

bmorepunk":dxflwzgq said:
I doubt the NFL is going to put their product on a medium that will pay a fraction of that $1 billion since it represents a little over 10% of their revenue, especially since there are no obvious returns coming out of it besides what Netflix or YouTube would pay them.

A fraction? I'm not talking about including Sunday Ticket in the price of friggin' Netflix, I'm talking about charging a full rate to buy it through a medium like that as its own service. I'd gladly pay Netflix directly the $300 for a season of Sunday Ticket. That's probably still less than DirecTV pays the NFL because they literally use Sunday Ticket to keep their overall business afloat, but with the much wider access base you'd have through Netflix, the NFL could likely make more than they do through DirecTV. Regardless, it pisses me off that I can't just buy this friggin' service.

kidhawk · Oct 2, 2014

Cartire":32on4w11 said:
I was really disappointed when I heard of this. 2 years ago, there was a tease that Google was interested. At the time, I thought it was a sure thing. As Google could easily match any offer on the table. And with Smart TV's and devices like Apple TV/Roku/Chrome Cast becoming more common place, it just makes more sense to cross over the the streaming realm.

I obviously dont know the math here, but I would assume that the NFL could easily make more by allowing an open-market and each provider who wants to have a license for Sunday Ticket, pay $500,000,000 a year. I guarantee at least 3 providers would take the deal, which would equal the current revenue for it. But the truth is, even more would buy the license and the NFL would make more. At the same time, because the license is cheaper, they could sale the packages for cheaper. There by helping the consumer as well. Bringing in more viewers. So its a bit confusing. As someone mentioned previously in the thread though, there has always seemed to be something up with DirectTV and other providers not even getting a fair look. Im thinking some under-the-table handshaking is occurring with these deals.

Your math doesn't quite work. There is a finite number of people who will pay for the package. If the NFL is going to make the same or more from these providers to resell their package to the same number of people, then less people would purchase from each provider, therefor the price per person would still need to be similar to what it is now.

The only way to truly increase the number of people wiling to pay for games dramatically would be to go to a per game pricing scale, and it's blatantly obvious right now that the NFL has no desire to do this.

Cartire · Oct 2, 2014

kidhawk":3meaedg7 said:
Cartire":3meaedg7 said:

I was really disappointed when I heard of this. 2 years ago, there was a tease that Google was interested. At the time, I thought it was a sure thing. As Google could easily match any offer on the table. And with Smart TV's and devices like Apple TV/Roku/Chrome Cast becoming more common place, it just makes more sense to cross over the the streaming realm.

I obviously dont know the math here, but I would assume that the NFL could easily make more by allowing an open-market and each provider who wants to have a license for Sunday Ticket, pay $500,000,000 a year. I guarantee at least 3 providers would take the deal, which would equal the current revenue for it. But the truth is, even more would buy the license and the NFL would make more. At the same time, because the license is cheaper, they could sale the packages for cheaper. There by helping the consumer as well. Bringing in more viewers. So its a bit confusing. As someone mentioned previously in the thread though, there has always seemed to be something up with DirectTV and other providers not even getting a fair look. Im thinking some under-the-table handshaking is occurring with these deals.

Click to expand...

Your math doesn't quite work. There is a finite number of people who will pay for the package. If the NFL is going to make the same or more from these providers to resell their package to the same number of people, then less people would purchase from each provider, therefor the price per person would still need to be similar to what it is now.

The only way to truly increase the number of people wiling to pay for games dramatically would be to go to a per game pricing scale, and it's blatantly obvious right now that the NFL has no desire to do this.

Except your opening up the user base. Right now, its finite to DirectTV subscribers. And while this package brings in new customers, Cable still controls the majority of TV viewers. Think if you were able to tap into that stream as well. Sure, you have to count a middling amount of people who would have swapped either way in a exclusive deal, but its not hard to fathom that a large amount of people would love to have the package but simply arent willing to swap to the dish. And in the event of a strong streaming option as well, that opens up even more users who have cut the cord.

I agree that an ala carte would be the best, but there is a reason that cable/satellite doesnt do it either with channels.

kidhawk · Oct 2, 2014

Cartire":eryzrc2g said:
kidhawk":eryzrc2g said:

Cartire":eryzrc2g said:

I was really disappointed when I heard of this. 2 years ago, there was a tease that Google was interested. At the time, I thought it was a sure thing. As Google could easily match any offer on the table. And with Smart TV's and devices like Apple TV/Roku/Chrome Cast becoming more common place, it just makes more sense to cross over the the streaming realm.

I obviously dont know the math here, but I would assume that the NFL could easily make more by allowing an open-market and each provider who wants to have a license for Sunday Ticket, pay $500,000,000 a year. I guarantee at least 3 providers would take the deal, which would equal the current revenue for it. But the truth is, even more would buy the license and the NFL would make more. At the same time, because the license is cheaper, they could sale the packages for cheaper. There by helping the consumer as well. Bringing in more viewers. So its a bit confusing. As someone mentioned previously in the thread though, there has always seemed to be something up with DirectTV and other providers not even getting a fair look. Im thinking some under-the-table handshaking is occurring with these deals.

Click to expand...

Your math doesn't quite work. There is a finite number of people who will pay for the package. If the NFL is going to make the same or more from these providers to resell their package to the same number of people, then less people would purchase from each provider, therefor the price per person would still need to be similar to what it is now.

The only way to truly increase the number of people wiling to pay for games dramatically would be to go to a per game pricing scale, and it's blatantly obvious right now that the NFL has no desire to do this.

Click to expand...

Except your opening up the user base. Right now, its finite to DirectTV subscribers. And while this package brings in new customers, Cable still controls the majority of TV viewers. Think if you were able to tap into that stream as well. Sure, you have to count a middling amount of people who would have swapped either way in a exclusive deal, but its not hard to fathom that a large amount of people would love to have the package but simply arent willing to swap to the dish. And in the event of a strong streaming option as well, that opens up even more users who have cut the cord.

I agree that an ala carte would be the best, but there is a reason that cable/satellite doesnt do it either with channels.

Yes, there would be a few more added to the mix when you have more options, but as the original poster said, there would likely be more revenue to the NFL because of more options. It would require extra people to cover the extra revenues. Also, nobody is factoring in the hit that DirecTV takes (losing money) to have exclusivity. If there is no exclusivity anymore, then companies will need to recoup a higher percentage of what they spend to get the service. This in turn would require even more people just to break even at current rates.

I just see this as one area where we won't be seeing a significant drop in consumer costs as long as it's sold in a package formula. I also think that if they ever were to go to Ala Carte, the prices would have to be a bit more than people may assume.

RolandDeschain · Oct 2, 2014

Yeah, yeah, yeah; and the RIAA knew they'd lose massive profits if they started selling digital music at one point.

Stodgy old CEOs and board members just aren't interested in being creative as far as finding ways to move technologically forward. "Why risk it? We're getting gazillions now."

bmorepunk · Oct 2, 2014

RolandDeschain":2zcxyxo9 said:
Yeah, yeah, yeah; and the RIAA knew they'd lose massive profits if they started selling digital music at one point.

Stodgy old CEOs and board members just aren't interested in being creative as far as finding ways to move technologically forward. "Why risk it? We're getting gazillions now."

Revenue from music continued to tank even after the companies got on board with digital distribution. Some analysts have attributed this heavily to the fact that selling an entire album generates far more revenue and profitable than selling single songs. 2012 was the first year since 1999 that there wasn't a decline in music revenue (it was an increase of a whole 0.3%).

Additionally, I don't think the music and NFL product or distribution models look sufficiently similar to make this comparison.

Popeyejones · Oct 2, 2014

MizzouHawkGal":3hed7eza said:
From what has been reported it's 8 years/12 billion dollars which is 500 million more per year then previously.

FWIW if I was a selfish Hawks fan I'd be pretty excited about this new deal. An extra 500 million per year in revenue means an extra 6-7 million per team on the salary cap, and the Hawks are in as good (or better) of a position to need that and take advantage of it than anybody.

Also, IIRC can't you get an online subscription to the Red Zone without being a DirectTV subscriber? I know you can for Rewind (I've got one; I think it was 40 bucks or something), which is an awesome deal given how many of the games are stacked. I don't have a cable subscription and am still able to watch Football Thursday-Monday* and then use Rewind to watch the condensed versions of all the other games from the week at the gym befoe the next week starts. It's much better than having access to eight games on Sunday morning when I can't watch seven of them anyway.

*TBF, a combination of CBS and ESPN HD online feeds, and having a Slingbox hooked up to my folks' second cable box.

RolandDeschain · Oct 2, 2014

Popeye, anybody can get Red Zone. That's pretty unrestricted and available through all cable/satellite companies that I've seen for a relatively nominal monthly fee.

Popeyejones · Oct 2, 2014

^^^^ Ah, okay thanks. I guess I don't see what the problem is then. Between redzone, rewind, sports bars and illegal streaming, who cares, I guess?

pmedic920 · Oct 2, 2014

All I can say is this.
Sunday ticket has been my football life saver.
I hate it and love it at the same time.
They do promotions that are unfair to loyal customers. Price goes up almost every year.
But I stay because I live out of market and won't go without watching MY Seahawks.
I even got an email from one of my credit cards offering 30k in miles to sign up with DTV. Comes with free Sunday ticket. 30k is enough for a round trip flight. Sunday ticket cost me around $300 this year.
I found myself with a calculator checking if I should terminate and rejoin.
Sure wish they would do a single team option.
I hate DTV but love them.

Cartire · Oct 2, 2014

pmedic920":1km6rh4z said:
I hate DTV but need them.

Fixed that for you.

NFL & DirecTV extend Sunday Ticket Deal

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