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Originally Posted by DaneMcCloud
Good ****ing god. To understand economics?
No other entity is going to outbid DTV's $1.5 billion a year deal, period, ESPECIALLY when viewership has declined by 20% in one year. The NFL is taking in the dough, regardless of whether or not their broadcast partners are losing money.
Also, DTV is getting closer to dumping the dish and going over the internet. Regardless, if DTV decides it's in their best interest to offer Sunday Ticket at $200 a pop (which is considerably lower than the current $359), they would need 7.5 million subscribers - nearly 4 times as now - to reach the breaking even point of $1.5 billion.
Again, it's a horseshit assumption.
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When did I say anyone has to outbid DTV? Take a lower bid... I'd say ability to market to 80M more households could easily recover the difference. And it's not just subscribers. More viewers = higher ratings/sponsorships/ad $'s. Loyal fans spend more $'s.
If ratings are down by 20% I'd be really damn concerned about winning those fans back instead of justifying a contract that restricts fan options.
The DirecTV contract was (*edit.. Wasn't bad) bad to begin with. But it's really bad today in a world where fans are watching significantly more shit online or streaming. DirecTV/ATT can and should offer Sunday Ticket to a mass audience. But until they do, the NFL will keep taking a bigger hit until the 2 sides adjust to reality. Goodell's Twitter deal suggests he gets it.