Some Have Wondered This... Impact of Lockout on DirectTV

[Hostile]

DirecTV May Lose Sales More than $600 Million in NFL-Players Dispute

3/16/2011 8:26:26 AM

Alex Sherman of Bloomberg reports DirecTV, the largest U.S. satellite-television provider, could lose out on more than $600 million in revenue this year if the National Football League cancels the 2011 season, according to analysts’ estimates.

DirecTV’s NFL Sunday Ticket, which allows viewers to watch every NFL game, generated between $600 million and $750 million in subscription revenue last season, said Craig Moffett of Sanford C. Bernstein & Co. The company would have added another $44 million in new Sunday Ticket subscribers this year if it got the same number as last year, he said.

The football programming, which runs $335 per season on top of regular subscription fees and isn’t offered by any other operator, would also cost El Segundo, California-based DirecTV a branding tool for drawing new customers to other television services, diminishing growth in the near term.

“Usually Sunday Ticket brings them a number of new subscribers,” said New York-based Moffett, who has a “market perform” rating on the company’s stock and doesn’t own any. “They are losing one of their biggest marketing draws.”

 

[AdamJT13]

They'll just charge more in 2012. It's not like you can get Sunday Ticket from another satellite provider.

 

[Hostile]

They'll just charge more in 2012. It's not like you can get Sunday Ticket from another satellite provider.

I believe you are correct sir.

 

[jazzcat22]

Already cancelled my NFL Sunday ticket for this year. Something I said I was going to do the past 2 years. But finally did it this year.

Several reasons, not just the lockout news. Mostly, I don't use it that much anymore.
I have season tickets, so 8 weeks I useally can't use it, unless Dallas is on Sunday or Monday nights games, and the Dead Bird Day game.

Then most other times, on Sundays, I was at my business, watching the away games there. So I was basically using it 3 to 4 weeks at the most.

I had NFL Sunday Ticket since 1997. I wonder if they'll offer me some kind of deal to add it back on.

 

[Cajuncowboy]

I received an email survey from NFL/DTV about a month ago and it was asking about different purchasing options for Sunday Ticket type of programming.

They were asking about individual game purchases and group game purchases etc.

They kept going back to the cost factor and asking

"How much would you pay for this service if it was offered?"

Different means of distributing the content was mentioned as well.

I think this tells me that either the NFL or DTV or both understand that they are getting close to pricing themselves out of the market. And now with all the acrimony in the labor dispute, there will most certainly be a drop off in subscribers, at least to the NFL Ticket.

But at least they are looking at other means to deliver the programming and looking at cost issues.

 

[LucaBrasi]

I don't know what I'd do without it. I've had it since the 2000 season. Every year I call up and complain about the price and they give me a discount. They dropped $120 off the bill last season.

 

[Cowboy Brian]

Don't they pay the NFL something like 1 billion over 5 years for the rights to that package though?

 

[YosemiteSam]

They'll just charge more in 2012. It's not like you can get Sunday Ticket from another satellite provider.

...and they will just lose a subscriber in the process.

 

[Yeagermeister]

$335? hno:


I freaked when they raised it to $200

 

[BrAinPaiNt]

Hard to feel bad for them when they knew there was a strong possibility of it happening to the point to agreeing with the owners insurance issues if the season did not happen.

 

[Future]

Hard to feel bad for them when they knew there was a strong possibility of it happening to the point to agreeing with the owners insurance issues if the season did not happen.

Hard to feel bad for them because they charge like 300 bucks for it.

 

[dogberry]

There is always the option of flirting with Homeland Security by watching the game on a People's Liberation Army, Al Khaduh, or Calli Cartel server.

 

[AdamJT13]

I think this tells me that either the NFL or DTV or both understand that they are getting close to pricing themselves out of the market.

I doubt it. They keep raising the price every year, and more people sign up every year.

More likely, they're looking into whether offering partial packages (individual games, every game for a particular team, etc.) would bring in more money in total. For example, if they offered a single-team package for a lower price, they might lose subscribers to the entire package but end up making more money overall because so many people would sign up for the single-team package.

 

[BrAinPaiNt]

Hard to feel bad for them because they charge like 300 bucks for it.

I would not know.

I refuse to buy a years worth of service (contract) before I can even get a chance to get the NFL Ticket. I guess I will just have to watch the games on the regular networks, on the internet and one or two (if they are scheduled this year) on NFL network.

Direct TV really turned me off as far as getting the ticket due to having to sign up for a years service of their regular package before I could get the ticket.

I prefer to stay with my cable service.

 

[TheCount]

I received an email survey from NFL/DTV about a month ago and it was asking about different purchasing options for Sunday Ticket type of programming.

They were asking about individual game purchases and group game purchases etc.

They kept going back to the cost factor and asking

"How much would you pay for this service if it was offered?"

Different means of distributing the content was mentioned as well.

I think this tells me that either the NFL or DTV or both understand that they are getting close to pricing themselves out of the market. And now with all the acrimony in the labor dispute, there will most certainly be a drop off in subscribers, at least to the NFL Ticket.

But at least they are looking at other means to deliver the programming and looking at cost issues.

How can you price yourself out of a market when you ARE the market?

 

[noletime95]

I just dropped Direct TV for now. I can't justify paying extra $$ every month since I could just bundle internet/cable and phone service on top of the rising cost of the ticket.

I calculated a savings of around $1,200 per year after tax money. Sure I could spend it on the ticket (and might again one day), but not while I'm to busy to watch much football outside of the Cowboy game every Sunday. I can go to a bar the 4-5 times a year Dallas isn't nationally telivised and spend around $150 probably instead.

 

[viman96]

Between the internet and local sports bars, the NFL package is not worth the money.

 

[Meat-O-Rama]

They'll just charge more in 2012. It's not like you can get Sunday Ticket from another satellite provider.

I believe that is about to change. Maybe not in the next year or two, but DirecTV seems to be gearing up to lose their monopoly on Sunday Ticket.

A few months ago I got a survey from them that I filled out. It was a very detailed, very specific set of questions about how I would choose to get Sunday ticket in the event it was offered by other than DirecTV, and if DirecTV offered different prices and options such as a la carte games.

 

[Cajuncowboy]

How can you price yourself out of a market when you ARE the market?

It's pretty simple. There is a finite point where people just can't afford it anymore and they look for alternatives. I know for a fact that they have had more complaints last two years about the cost of the ST.

Just because you are the only one who has the ST doesn't mean that is the only way people can see every game.

 

[goshan]

It's pretty simple. There is a finite point where people just can't afford it anymore and they look for alternatives. I know for a fact that they have had more complaints last two years about the cost of the ST.

Just because you are the only one who has the ST doesn't mean that is the only way people can see every game.

DirecTV knows exactly what the price point is to maximize revenue. Sure they lose people when they raise the price, but revenue per customer goes up. I can assure you they have a very specific model for this - as long as there is a monopoly on getting all NFL games, they won't be pricing themselves out of the market.