Sports TV: DirectTV Sunday Ticket LOSES MONEY 7 SUBSCRIBERS?!?! Going to APPLE TV? DirecTV Is Buying Dish For Over $9 Billion

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Less Than a Quarter of DirecTV Subscribers Pay for NFL Sunday Ticket - Kagan
By Daniel Frankel published May 10, 2022
Survey explains why satellite TV operator isn't anxious to renew a 28-year-old partnership with the league that costs it $1 billion a season


Only 23 percent of DirecTV customers recently polled by S&P Kagan acknowledge paying for the satellite TV company's exclusively licensed NFL Sunday Ticket add-on package.


The survey data, which was first published by paywalled news site Axios Tuesday, offers insight as to why DirecTV, which has licensed the Sunday Ticket out-of-market games package from the NFL since 1994 and currently pays $1 billion a season for it, will not seek to renew the agreement when it expires after this upcoming pro football season.

It was reported late last month that Apple is close to licensing NFL Sunday Ticket, paying as much as $2.5 billion a year.

According to the S&P Kagan data, 16% of DirecTV customers said they also subscribe to NFL Sunday Ticket, but get it free through promotional discounting. Seven percent said they were unsure if they had the add-on programming bundle.



DirecTV was spun off from AT&T last year and had a reported 14.6 million remaining subscribers across its satellite- and IP-based services at the end of 2021. NFL Sunday Ticket pricing ranges from $293.96 to $395.99 for the "Max" plan, with customers able to sign up as the NFL regular season progresses at prorated cost.


Doing the basic math, if 23% of AT&T's base (around 3.35 million customers) pay $300, DirecTV is just about breaking even each season on its Sunday Ticket licensing. ■

 

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NFL Sunday Ticket: Why Would Apple Share With DIRECTV?

Date: July 7, 2022Author: TV Answer Man0 Comments
TV Answer Man, I don’t understand why Apple would allow DIRECTV to keep selling the NFL Sunday Ticket if it gets the next contract. Wouldn’t that hurt their subscriptions if they didn’t have it as an exclusive deal? Does this make sense to you? — Tony, Las Vegas.

Tony, CNBC reported last month that Apple, Amazon and Disney (for ESPN+) have all made bids for the next NFL Sunday Ticket contract. (DIRECTV’s current exclusive deal with the NFL expires after the 2022 season.)
The article suggests a league decision is not imminent but says DIRECTV has not made a bid. That’s not surprising, but CNBC raised eyebrows by reporting that DIRECTV hopes to continue selling the Sunday Ticket in 2023 and beyond by cutting a licensing deal with the winning bidder.
Why would Apple, Amazon or Disney agree to this?
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Two major reasons:
1. Offset the cost of acquiring the Ticket
CNBC and other news outlets have reported that the next Sunday Ticket contract could cost as much as $2.5 billion a year. (DIRECTV is now paying around $1.5 billion a year.) That’s a significant outlay even for companies like Apple, Disney and Amazon with deep pockets. CNBC says DIRECTV would likely forward its Ticket subscription revenue (minus expenses) to the new Ticket rights holder, which could put a serious dent in the acquisition cost. (DIRECTV would still benefit from the arrangement because the Ticket would help reduce its subscriber churn.)

2. Reach subscribers that a streaming company can’t reach.
DIRECTV sells the Sunday Ticket to bars and restaurants as well as its satellite audience. For various reasons, including equipment and Internet difficulties, it would likely be difficult for a streaming company to serve the bar/restaurant clientele as well as DIRECTV. By allowing the satcaster to maintain its commercial business, the streaming company would generate more revenue.
In addition, many DIRECTV subscribers live in rural areas where streaming is still unreliable. Having DIRECTV as a partner would ensure that the winning streaming company could still generate subscribers (and revenue) from this audience.
There’s no guarantee that DIRECTV will establish a partnership with the next Ticket rights holder. But it says here that it would make financial sense for both parties to do so.
Tony, hope that helps. Happy viewing and stay safe!
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— Phillip Swann

 

crazycac50

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I could have sworn that DTV sent me a letter last week saying I could have free NFL ticket this year as a loyalty reward but I didn’t bother reading through the offer since you m still boycotting the league over their reaction to players kneeling.
 

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I could have sworn that DTV sent me a letter last week saying I could have free NFL ticket this year as a loyalty reward but I didn’t bother reading through the offer since you m still boycotting the league over their reaction to players kneeling.

they giving it away for free because they been LOSING so much money from it.
 

Helico-pterFunk

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they giving it away for free because they been LOSING so much money from it.



Speaking of giving it away. I was talking to my mom last week. She plans to return to Winnipeg, Manitoba for a visit in September. She grew up there and still has a few brothers living there.

She was at a BBQ at her niece's place last weekend and got to talking to her sister's ex-husband (and his wife). He lived in Winnipeg up until a few years ago and was last there in February. They got a promo offer from their airline for roundtrip tickets to Winnipeg good for later in the year at only $58, so they're going back even though they were just there. Hard deal to pass up. Cheaper than a tank of gas at these current prices.

My mom was jokingly frustrated like WTF ... "I paid over $900 for these tickets" (and that's always been a funny pet peeve of hers). When you board a flight ... guaranteed EVERYONE has paid different prices. Some good deals, some OK, and some TERRIBLE. You never quite know when's the best time to buy. WAY far in advance, or some last-second deals if you have a flexible schedule like that.
 

D@mnphins

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Had DirectTv in the past and they are so expensive just to add a second HD box. But I wanted the Sunday Ticket and paid the price. Had 4 TVs setup just for Sundays games. Had 50ft component cables running through the house from the other boxes for Sundays. Their internet was trash and I was downloading too much data I needed cable speed. And never looked back.

I know bars and restaurants will be happy when the deal is done. Will be cheaper for them and no big ass dish satellite going out from a chance of rain.
 

playahaitian

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Had DirectTv in the past and they are so expensive just to add a second HD box. But I wanted the Sunday Ticket and paid the price. Had 4 TVs setup just for Sundays games. Had 50ft component cables running through the house from the other boxes for Sundays. Their internet was trash and I was downloading too much data I needed cable speed. And never looked back.

I know bars and restaurants will be happy when the deal is done. Will be cheaper for them and no big ass dish satellite going out from a chance of rain.

Interesting point cause apparently it's the bars and resting who are most important here

They don't want internet streaming

Apparently - because of gambling and existing technology the bars want the NFL service to remain as simple and accessible as possible
 

playahaitian

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Co-worker said that he threatened to leave and they gave him the season free

One big thing is all these sports bars and bars that have Direct TV because of the NFL package

Direct TV is going to end up like Dish

I don't know so far all the industry folk saying DIRECT TV been losing money with this deal and trying to get out.

They should fine without it

Remember there is nfl red zone which was hurt Sunday ticket

And nfl+ is coming.
 

D@mnphins

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Interesting point cause apparently it's the bars and resting who are most important here

They don't want internet streaming

Apparently - because of gambling and existing technology the bars want the NFL service to remain as simple and accessible as possible
I was thinking streaming would be easier in a bar. But now they will either need smart TVs or a Fire stick, apple tv or roku box. Which would still be cheaper than renting multiple DirectTV boxes monthly. May have to run fiber for high speed internet.

Imagine a Chiefs/Chargers game 42 to 45, MaHomes with the ball to Kelsey and frozen screen (bufferring) for 5 min. Then KC is cheering running off the field.

Haha. Fans would be pissed.
 
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