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story category DirecTV Extends Exclusive NFL Contract
Sunday Ticket stays with carrier, will expand via broadband...
(old news - 08:34AM Tuesday Mar 24 2009)
tags: satellite · Video · competition · business
DirecTV has scored a huge win in their battle against cable and telcoTV competitors by extending their exclusive contract with the NFL to broadcast out of market NFL games (aka "Sunday Ticket"). According to Multichannel News, the NFL has reached a four-year contract extension with DirecTV to remain the TV home of the Sunday Ticket package through 2014. The controversial package remains a major reason (aside from their hefty HD channel count) why DirecTV is faring well against competitors. Interestingly, the deal paves the way for an expanded broadband NFL service to be launched in several years:
The agreement opens the door to a wider reach for the out-of-home package, which will become available to broadband subscribers that can't receive DirecTV. . . This broader broadband service, according to league officials, would kick off no later than 2012. Currently, broadband coverage of the games is limited to those who purchase Sunday Ticket, and then pay an additional $99 for the broadband Super Fan package.
While other sports leagues have extensively embraced online video, the NFL has traditionally been stingy about their content, unless you're really willing to pony up the cash. Sprint recently paid $500 million for a five year contract that allows them to broadcast limited NFL games via EVDO. DirecTV previously paid about $700 million annually for their exclusive deal and will now pay more. Likely, so will you.

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Forums » DirecTV Extends Exclusive NFL Contract
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OSIU
Where is my "change"?
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1 edit

Great.... NOT!

To me this sounds like another way for DTV to raise rates on us. I do enjoy a NFL game here and there, but have no interest in watching just about every game every week. I hope this does not affect those of us that enjoy DirecTV but don't buy these types of packages....

Edit: affect
whocares
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Re: Great.... NOT!

insteas of DT DirecTV Extends Exclusive NFL Contract

WISH LIKE HELL they would add more adventure or movie channels,

Eat Me

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1 edit
said by OSIU See Profile :

I hope this does not affect those of us that enjoy DirecTV but don't buy these types of packages....

Edit: affect
It won't. It's just for NFL Sunday Ticket. The regular games for your market will still be where they always were - on your local stations.

Honestly NFL ST is way too much football for me and a waste of money.

GOLFnSUN
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Re: Great.... NOT!

said by Eat Me See Profile :

said by OSIU See Profile :

I hope this does not affect those of us that enjoy DirecTV but don't buy these types of packages....

Edit: affect
It won't. It's just for NFL Sunday Ticket. The regular games for your market will still be where they always were - on your local stations.

Honestly NFL ST is way too much football for me and a waste of money.
And too much for the cable companies as well. In fact, Comcast just told all their $5 sports pkg channel lineup customers that the NFL Network channel is most likely gone by May 1 because the NFL wants too much money to carry the channel. And all you got with that was a Thursday night football game. I think the NFL, except for DirecTV, is pricing itself out of many markets. They don't seem to understand the recession will cut in to their markets as well.
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BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by GOLFnSUN See Profile :

said by Eat Me See Profile :

said by OSIU See Profile :

I hope this does not affect those of us that enjoy DirecTV but don't buy these types of packages....

Edit: affect
It won't. It's just for NFL Sunday Ticket. The regular games for your market will still be where they always were - on your local stations.

Honestly NFL ST is way too much football for me and a waste of money.
And too much for the cable companies as well. In fact, Comcast just told all their $5 sports pkg channel lineup customers that the NFL Network channel is most likely gone by May 1 because the NFL wants too much money to carry the channel. And all you got with that was a Thursday night football game. I think the NFL, except for DirecTV, is pricing itself out of many markets. They don't seem to understand the recession will cut in to their markets as well.
NFL wants 70 cents and Comcast charges $5 for it? yeah who are they fooling?
yt
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Re: Great.... NOT!

said by BF69 See Profile :

NFL wants 70 cents and Comcast charges $5 for it? yeah who are they fooling?
Not sure of your numbers, but 70 cents times EVERY customer (watching it or not) vs $5 for ONLY the customers that want it, may explain the difference.

BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by yt See Profile :

said by BF69 See Profile :

NFL wants 70 cents and Comcast charges $5 for it? yeah who are they fooling?
Not sure of your numbers, but 70 cents times EVERY customer (watching it or not) vs $5 for ONLY the customers that want it, may explain the difference.
No the NFL only get 70 cents for each person subscribed to the sports tier.
yt
Premium
join:2008-06-03

Re: Great.... NOT!

Ah... So is it the NFL that wants to extend the same deal or are they asking for more?

BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by yt See Profile :

Ah... So is it the NFL that wants to extend the same deal or are they asking for more?
The NFL wants to be on a basic digital tier like MLB Network is and NBA Network soon will be. Seems only fair.
markofmayhem

join:2004-04-08
Pittsburgh, PA
No, NFL wants 70 cents per subscriber and the channel placed on expanded basic. Comcast wants to leave it on the S&E package. NFL will not allow Comcast to carry the channel at all unless it's placed on expanded basic. BF69 is incorrect.

BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by markofmayhem See Profile :

No, NFL wants 70 cents per subscriber and the channel placed on expanded basic. Comcast wants to leave it on the S&E package. NFL will not allow Comcast to carry the channel at all unless it's placed on expanded basic. BF69 is incorrect.
WRONG! The NFL has said it's fine with being on a basic DIGITAL tier. I KNOW my facts I've been following this issue for a couple of years now so please. By teh way comcast FORCES other cable companies to put stations it owns on expaned basic, like Golf Channel. Isn't that a SPORT? yet Charter is NOT allowed ot put it on a sports tier.
yt
Premium
join:2008-06-03


1 edit

Re: Great.... NOT!

So the NFL wants to change the way it is now (sports tier to digital tier) and unless they get their way they will pull the channel?

What happens when the NFL channel starts moving more and more games to NFL-Channel only?

I'd prefer watching my 1-3 games / week on major network channels than having to subscribe to a new football channel that has 7x24 NFL content.

KrK
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said by BF69 See Profile :

WRONG! The NFL has said it's fine with being on a basic DIGITAL tier. I KNOW my facts I've been following this issue for a couple of years now so please.
Duh. Of course they want it on a basic tier. Since every subscriber gets the tier.... that means EVERY subscription pays the 70 cents. Thank you, you made his point.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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said by BF69 See Profile :

NFL wants 70 cents and Comcast charges $5 for it? yeah who are they fooling?
The 5 dollars is for about a half dozen or so sports networks. Tennis, soccer, etc.
--
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BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by GOLFnSUN See Profile :

said by BF69 See Profile :

NFL wants 70 cents and Comcast charges $5 for it? yeah who are they fooling?
The 5 dollars is for about a half dozen or so sports networks. Tennis, soccer, etc.
And how many get that tier just for NFL Network? I know that when Charter briefly had NFL Network and I could only get it by paying $4 for the sports tier, as soon as NFL Network went so did my subscription to the sports tier. I couldn't care less about any of that other junk on there. If just 15% drop the sports tier Comcast LOSES money. I'm sure the number will be at last that.

BF69

join:2004-07-28
Camden, TN

said by Eat Me See Profile :

said by OSIU See Profile :

I hope this does not affect those of us that enjoy DirecTV but don't buy these types of packages....

Edit: affect
It won't. It's just for NFL Sunday Ticket. The regular games for your market will still be where they always were - on your local stations.

Honestly NFL ST is way too much football for me and a waste of money.
it won't? hate to tell you but the money DirecTv bring in from Sunday Ticket is not enough to cover the cost they pay to the NFL for exclusive rights. So look for a price increase every year until 2014.
markofmayhem

join:2004-04-08
Pittsburgh, PA

Re: Great.... NOT!

You ain't kidding! Last estimate I heard was 1.5 million subscribers to ST, which both CBS and Fox want the cap to be. That's $666 per year in cost, so if they charge $200, Sunday Ticket is a $466 loss per signup. Unless the cap on Sunday Ticket subscribers was raised?

BF69

join:2004-07-28
Camden, TN

Re: Great.... NOT!

said by markofmayhem See Profile :

You ain't kidding! Last estimate I heard was 1.5 million subscribers to ST, which both CBS and Fox want the cap to be. That's $666 per year in cost, so if they charge $200, Sunday Ticket is a $466 loss per signup. Unless the cap on Sunday Ticket subscribers was raised?
Sunday Ticket last year for 1st time subscribers was $300. People that have it get a discount. DirecTv is going to pay $1 BILLION per year. So even assuming the $300 per subscribers and assume 100% of Sunday Ticket subscribers pay the $100 for the Superfan package it would take a minimum of 2.5 million Sunday Ticket subscribers for DirecTv to break even. So that's about 15% of all DirecTv subscribers? Um right.
lovswr

join:2001-09-15
Stockbridge, GA
They did raise rates, effective 1 march 2009. Now I know why we did not get any more HD channels this month. I love football as much as the next red-blooded hemerican, but I want Travel HD, all of the HBO/Showtimes/ etc in HD & Anime Network now!
chitchatjf

join:2008-07-13
Lawrence, MA
IMHO I think DirecTV would like an exclusive on the Super Bowl

SolarPup
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Can I be the race car?

Gotta love monopolies.....
Brucefire

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Re: Can I be the race car?

How is this a monopoly? If other companies thought it was important to their business they should outbid DTV.
Joe12345678

join:2003-07-22
Des Plaines, IL

Re: Can I be the race car?

and what other companies have the coverage of Direct TV?

Dish network they don't even have MBL EI.

Cable is to limited for 1 company and IN Demand up to 2 games a week in HD?

Maybe a limited Cable roll out + direct tv?

Can att U-Verse use the broadband part for Sunday Ticket on U-Verse? Att and direct tv are teamed up now.
Brucefire

join:2000-08-30
Reynoldsburg, OH


1 edit

Re: Can I be the race car?

Comcast could afford it. They were outbid or choose not to go after Sunday Ticket. It must not be important to them and their business model. It is important to DTV to keep and grow its customer base.
If it was really important to the cable companies should try to team up like they tried in 2004.
»www.multichannel.com/article/855···able.php

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said by Brucefire See Profile :

How is this a monopoly? If other companies thought it was important to their business they should outbid DTV.
DirecTV's new contract is for $1 BILLION per year for 4 years (seasons starting 2011 - 2014). That's a level of insanity that most media companies can't afford to pursue, especially in this economic climate.

jsz0

join:2008-01-23
Jewett City, CT
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Monopoly is one of those words people throw around all the time but I don't think many people know what it really means.

Neither the NFL or DirectTV are a monopoly. Both have a variety of competitors including: cable, telco-video, Dish Network, NBA, MLB, NHL, college sports, etc.

If anything it's the exact opposite. It's the free market at work. DirectTV offers the NFL more money. NFL likes money a lot. Doesn't really care if X number of fans can't get the package on cable/telco-video/DISH because they making a lot of money off this deal and that's all that matters to them. Free Market Capitalism 101.
Brucefire

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Re: Can I be the race car?

Thank you for that explanation.

kyler13
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said by jsz0 See Profile :

Monopoly is one of those words people throw around all the time but I don't think many people know what it really means.

Neither the NFL or DirectTV are a monopoly. Both have a variety of competitors including: cable, telco-video, Dish Network, NBA, MLB, NHL, college sports, etc.

If anything it's the exact opposite. It's the free market at work. DirectTV offers the NFL more money. NFL likes money a lot. Doesn't really care if X number of fans can't get the package on cable/telco-video/DISH because they making a lot of money off this deal and that's all that matters to them. Free Market Capitalism 101.
Your explanation is a bit disjointed and incomplete, and 50% wrong. A monopoly basically describes exclusive control of something. In this case, the NFL is not a monopoly since its product is available to anyone who cares to bid on it. Likewise, DirecTV is not a monopoly as a general TV provider. But with respect to Sunday Ticket, DirecTV is operating as a monopoly. You're locked into subscribing to their service and paying whatever price they set, without the opportunity to get that same service from any other provider (no competition). That, my friend, fits nicely into the definition of monopoly.

KrK
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It almost is right except:

The NFL could make more money if the package was open to everyone at lower expense per subscriber.

DTV pays extra, a lot extra, to make it an exclusive deal.

At that point it becomes like a monopoly in many ways--- Only DTV has it, and they're gonna charge you BIGTIME for it. You can't go anywhere else to get it.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

kyler13
Is your fiber grounded?

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said by Brucefire See Profile :

How is this a monopoly? If other companies thought it was important to their business they should outbid DTV.
What difference does it make who outbids who? If only one party carries it, that makes it exclusive, and that makes it a monopoly.

jsz0

join:2008-01-23
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Re: Can I be the race car?

Exclusive control does not alone make a monopoly. Most companies have exclusive control of their own products & services. I guess it depends how you look at it. The definition of the word monopoly or the legal status of a monopoly under US law. They are two very different things.

footballdude
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too much

I was one of the original subscribers to Sunday Ticket but like most other things related to sports, it's become too expensive to justify anymore. Last year they wanted $250 for the games and another $100 for HD. Sounds like it's going up this year.
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BF69

join:2004-07-28
Camden, TN

Re: too much

said by footballdude See Profile :

I was one of the original subscribers to Sunday Ticket but like most other things related to sports, it's become too expensive to justify anymore. Last year they wanted $250 for the games and another $100 for HD. Sounds like it's going up this year.
$250? try $300.

footballdude
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Re: too much

said by BF69 See Profile :

$250? try $300.
Actually, I think they offered me a lower rate because I'd been with them for so long. Still too expensive for me, though. Especially since I get the three network games on Sunday, plus ESPN, plus NFL network. I'm not hurting for football.
--
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bamabrad

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Can DT

resell to the cablecos and telcos?

See 14 replies to this post

guhuna
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WOW

ooohhhhhh... wow!!!

e_dub
franknbeans
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1 edit

bandwidth........

Another thing to look at is bandwidth caps. U-verse can forget-about-it. Currently you're only allowed to have 3 HD receivers u-verse. Try selling this to a sports bar that wants broadcast all NFL games in HD, at the same time. Kick rocks!! is what the owner of that bar will tell at&t. The local Dave&Busters in my area broadcasts all the NFL games via DirecTV. And it's just not the NFL that these bars show on their flat screens. A lot of bars will have any sport that the customer wants to watch in HD. I don't see this happening with Comcast or U-Verse.
vincebusam

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There are more advantages for the NFL

The NFL also likes the DirecTV, since it sort of limits the number of Sunday Ticket subscribers, and keeps the value and revenue of their broadcast network deals higher. If every cable/sat company carried ST, the broadcast deals wouldn't be worth as much.

stod



Sunday Ticket

DirecTV charges a commercial establishments more than residential subs.

Also, what tier does Comcast put their owned and operated RSNs? The sports tier, nope.

In Middle Tennessee Comcast has their own RSN on expanded basic and they won't cary SportSouth at all.

GoD of KaOs
Agent of KaOs

join:2001-01-29
Chatsworth, CA

Were the Cable Companies after this Contract?

It wasn't like the Cable Companies were really going after this contract since most them are not signed on for the NFL Network.
--
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MindBender

join:2001-06-26
House Springs, MO

Don't forget..

what they charge the commercial establishments. Where the home viewer pays $300 or whatever.. the Bars pay $3000+ dependent upon seating, and the Bars will pay it as it's the major draw for some.
fiberguy
My views are my own.
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join:2005-05-20

Dual Standards...

I love how cable owned sports networks are REQUIRED to be sold to competitors.. however, the NFL can still enter into exclusive agreements to broadcast their games to only one carrier.

Irony? Dual Standards? ... or who's pickets have the NFL greased?

e_dub
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Re: Dual Standards...

said by fiberguy See Profile :

I love how cable owned sports networks are REQUIRED to be sold to competitors.. however, the NFL can still enter into exclusive agreements to broadcast their games to only one carrier.

Irony? Dual Standards? ... or who's pickets have the NFL greased?
It's not dual standards, you're missing the big picture.
Let's say that a cable owned sports network has the rights to a game in their area. We'll use the Patriots as an example. This sport network is based in Boston and they provide service to residents of the Boston area. Therefore everyone in the Boston area can view this game. But what about the entire state of Mass, better yet the New England region. The cable company that owns this sports network does not provide service for the entire New England region. So what do they do; they sell service to competitors. Not as a requirement, but as an obligation to the entire New England Patriots fan base. Now this is where the satellite providers jump in with sacks full of cash. Still in the end, this cable owned sports network has the opportunity to have their network broadcast across the US. It's a win for them.
Let's say that they decide not to sell their network to competitors, not only are they hurting the fan that moved from their region to a small town in SW United States, but they're also hurting their business from pro sports, not just the NFL.

(IMO) NFL gave exclusive rights to one carrier because what other carrier can provided service across the US. (besides Dish Networks) Comcast, Cox, Verizon FIOS, U-verse, are not are not nationwide providers. I know they should still have the rights to carry the games, but some of these same providers are too cheap to even carry the NFL Network.
fiberguy
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Premium
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1 edit

Re: Dual Standards...

Upon reflection, I do not wish to post.

NappyD

@algx.net

Ok so..

The only ones to benefit from this will be Sports Bars. Way to go DirecTV, well played.

KrK
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DTV keeps this at all cost to block competition....

... while just passing whatever they pay onto the Sunday Ticket Subscribers.

So, DTV will outbid everyone, then jack rates on the package.

We'd ALL be better off if this exclusive deal dropped--- everyone could get Sunday Ticket. Result would be the price would drop by 3/4ths or more.

But then DTV would have to compete against everyone....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Forums » DirecTV Extends Exclusive NFL Contract


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