Quote:
Originally Posted by chiefzilla1501
$1.5B alternative:
-Bid contract out. Recover a lot of the $1.5B back
-Significantly increase paid subscribers (market to 100M households instead of 20M)
-Offer sponsorship/advertising on streaming site
Most obvious: significantly increase viewership. Increases fan loyalty which creates fan spending $'s. Charge more $ for advertising/sponsorship.
There is absolutely a tipping point where $1.5B isn't worth restricting options for fans. And the idea that you continue to push installing a physical dish and committing to a year-long cable contract when 15% of Americans are cutting the cord, it's not consistent with reality today. If the NFL wants to stay relevant, they have to offer online streaming to a mass audience. I don't know how that's even a question.
|
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.