The Direct TV Dance

[Alexander]

You guys talk about this every year and it never works for me.

If you have had it long it takes work. They know they got the crack and they are reluctant to sell it cheap to those they already have strung out.

 

[ifixoldhouses]

I just tried it again, no luck they won't give up the nfl sunday ticket, just offered $35 off a year with one year commitment, blah

 

[USMarineVet]

Just made my annual call. They told me that they couldn't offer it to me for free this year. Instead they reduced the price to $44 and change a month and gave me a 12 month credit at $50/month so it actually worked out better than if they offered it to me for free. They also gave me a $50 credit for 6 months on the main channels.

I never beat around the bush. I just tell them that I'm a long time customer and one of the reasons I stick with them is because of how they are willing to work with me to keep the cost down every year. I think they appreciate the honesty as much as I appreciate them lowering my bill.

 

[BigSooner]

I had the same offer as the previous poster. They discounted me $50 a month off my bill for 12-month commitment, so ST cost me $267 for the year, but saved $600 for the year. Would have been cheaper to give me ST for free, but I'm not complaining. I was told directly that special offers were based on your years of being a customer and how much you spend a month on programming.

 

[USMarineVet]

I had the same offer as the previous poster. They discounted me $50 a month off my bill for 12-month commitment, so ST cost me $267 for the year, but saved $600 for the year. Would have been cheaper to give me ST for free, but I'm not complaining. I was told directly that special offers were based on your years of being a customer and how much you spend a month on programming.

Yeah. I think their options are limited so the only way to wiggle around it is to give you the credit but charge you for the package. In the end I made out 5 or 6 bucks on top of the ST on the one deal plus the other 50/month discount. Like you, no complaints here.

 

[skinsscalper]

does anyone know how much they pay the NFL for the exclusive rights to ST?

12 Billion (yes BILLION) over 8 years.

 

[USMarineVet]

12 Billion (yes BILLION) over 8 years.

I did the math. That means they need 5,618,000 subscribers to break even. That's a little more than 112,000 subscribers per state.

 

[skinsscalper]

I did the math. That means they need 5,618,000 subscribers to break even. That's a little more than 112,000 subscribers per state.

With Directv, it's not really about a profit margin, per se when it comes to NFLST. They know that it's a good carrot to dangle to new customers but it's really more about customer retention. My monthly bill is about $145.00 a month. Now, in a world of cord cutters and people seeking a better deal, it's in Directv's best interest to retain me and the $1500+ that I'll pay them over the next 12 months than it is to play hard ball over a measley $350.00. Some may say that Directv is just taking it in the shorts by giving it away. Nothing could be farther from the truth. Directv has to pay that 20 Billion whether I subscribe or not. They're on the hook for the bill. They're better off keeping ME (you, us) happy by keeping us as customer's to help mitigate that 20 billion dollar bill than they are by pissing us off and losing the $1500+ (times how many million subscribers?) I'll be paying over the next year.

Here's something else Directv doesn't want to admit or face anytime soon: They're a dying industry. It won't be too long in the future that cable and satellite companies are going to go the way of the landline telephone. Some people still have them for various reasons but most of us have "cut the cord". With this in mind "customer loyalty" is going to be a cornerstone of "keeping the doors open". Now, don't get me wrong ATT/Directv are going to do everything they can to stay competitive in that word (including streaming), but with so many companies offering streaming services, they will no longer be able to charge my $145.00 a month. There will be too many options available provided by a jungle's worth of companies for them to get away with that price tier for very many years longer.

 

[Galian Beast]

I did the math. That means they need 5,618,000 subscribers to break even. That's a little more than 112,000 subscribers per state.

Think your math is a bit off here. You can break even a lot quicker with the annual contracts and monthly fees. That is why they're willing to use Sunday Ticket even as a loss leader.

 

[Go Big D!]

Since AT&T bought out DTV, wonder if they will try any bundle packages. I have AT&T U-Verse now, but even it has it's issues.
Anyone see any thing out there on this yet?

They do.

I have 3 lines all iPhone 6s with unlimited data, u-verse and directv with sports package and movie channnels and free NFL ST for $350 a month.

 

[skinsscalper]

Think your math is a bit off here. You can break even a lot quicker with the annual contracts and monthly fees. That is why they're willing to use Sunday Ticket even as a loss leader.

Not only that, customers that actually PAY for NFLST are putting Directv over the profit margin line. Make no mistake about it, the 20 billion dollar cost of NFLST is built into EVERYONE'S bill. They aren't hedging a 20 billion dollar bet. If you're a Directv subscriber, you're paying for NFLST whether you have it or not. You can count on that.

 

[USMarineVet]

Think your math is a bit off here. You can break even a lot quicker with the annual contracts and monthly fees. That is why they're willing to use Sunday Ticket even as a loss leader.

The math is correct. Based annually over an 8 year span. But I see your point on contracts and fees.

 

[Hoofbite]

Meanwhile there's a room full of execs somewhere who are giggling over the fact that people keep paying for their overpriced base packaging just because they're getting something for, "free".

 

[Galian Beast]

Not only that, customers that actually PAY for NFLST are putting Directv over the profit margin line. Make no mistake about it, the 20 billion dollar cost of NFLST is built into EVERYONE'S bill. They aren't hedging a 20 billion dollar bet. If you're a Directv subscriber, you're paying for NFLST whether you have it or not. You can count on that.

The math is correct. Based annually over an 8 year span. But I see your point on contracts and fees.

The other thing that needs to be considered is the opportunity cost.

Is there a better way to make a profit for them? And I would argue there probably isn't. They are losing ground extremely quickly as are other media giants. If they didn't have Sunday Ticket to even attract customers, they would be taking losses larger than the amount they invested in sunday ticket. DirecTV has been really smart about Sunday Ticket. They've even started to offer Sunday Ticket to go (which I purchased this year). That might seem contradictory, but it isn't. They are actually hedging. There is an untapped market out there that simply isn't going to get DirecTV, but still want Sunday Ticket. You can take quite a bit of the edge off of the cost of the program by selling to these consumers. There are also people who can't get it because of their location. I was able to get DTV in the past but somehow I qualified for ST to go, maybe they've expanded that range to some people with poor range or something, I don't know.

DirecTV will weather the coming storm a lot better than say Dish Network, but ultimately they're going to lose out to IPTV.

 

[Galian Beast]

Meanwhile there's a room full of execs somewhere who are giggling over the fact that people keep paying for their overpriced base packaging just because they're getting something for, "free".

I'm not sure there is. These providers are losing subscribers left and right. Is ST keeping them in the game? Absolutely, but I think they have enough to be worried about. They've built a house on quicksand, they don't have the time to be giggling at anyone.

 

[Hoofbite]

I'm not sure there is. These providers are losing subscribers left and right. Is ST keeping them in the game? Absolutely, but I think they have enough to be worried about. They've built a house on quicksand, they don't have the time to be giggling at anyone.

Okay, so they're breathing a sigh of relief that they can give away so little and get people to keep paying for their overpriced base packages?

 

[USMarineVet]

With Directv, it's not really about a profit margin, per se when it comes to NFLST. They know that it's a good carrot to dangle to new customers but it's really more about customer retention. My monthly bill is about $145.00 a month. Now, in a world of cord cutters and people seeking a better deal, it's in Directv's best interest to retain me and the $1500+ that I'll pay them over the next 12 months than it is to play hard ball over a measley $350.00. Some may say that Directv is just taking it in the shorts by giving it away. Nothing could be farther from the truth. Directv has to pay that 20 Billion whether I subscribe or not. They're on the hook for the bill. They're better off keeping ME (you, us) happy by keeping us as customer's to help mitigate that 20 billion dollar bill than they are by pissing us off and losing the $1500+ (times how many million subscribers?) I'll be paying over the next year.

Here's something else Directv doesn't want to admit or face anytime soon: They're a dying industry. It won't be too long in the future that cable and satellite companies are going to go the way of the landline telephone. Some people still have them for various reasons but most of us have "cut the cord". With this in mind "customer loyalty" is going to be a cornerstone of "keeping the doors open". Now, don't get me wrong ATT/Directv are going to do everything they can to stay competitive in that word (including streaming), but with so many companies offering streaming services, they will no longer be able to charge my $145.00 a month. There will be too many options available provided by a jungle's worth of companies for them to get away with that price tier for very many years longer.

Excellent assessment. I agree with everything you said. If it weren't for the NFL ticket I would jockey around and take advantage of the discounts offered from her competitors. That's one of the reasons I'm up front with them when I do ask for the package. My package is slightly higher than yours at this time of year but it will drop off by close to 70 dollars once the rebates kick in. Very nice insight.

 

[JDSmith]

You guys talk about this every year and it never works for me.

Have you tried mentioning your likes?

 

[skinsscalper]

Okay, so they're breathing a sigh of relief that they can give away so little and get people to keep paying for their overpriced base packages?

Sure they are. And, for the record, there's nothing in the world that isn't "overpriced". Companies print money on the backs of suckers in EVERY industry. I don't care what you're into. Clothes, guitars, drones, baseball cards, guns. If you're into it, you're getting screwed by someone.

 

[RJ_MacReady]

Sure they are. And, for the record, there's nothing in the world that isn't "overpriced". Companies print money on the backs of suckers in EVERY industry. I don't care what you're into. Clothes, guitars, drones, baseball cards, guns. If you're into it, you're getting screwed by someone.

I'll have you know that the jerseys from the NFL Pro Shop are worth every penny and then some, Mr. Hater. How they make a dime from all of the quality they provide in their products is beyond me. You sound poor. Fight me!