Thread: Are Sports Packages Profitable for the Providers?

Spinning this topic off of the 140 HD thread.

Does anyone know how many people sub to EI on DirecTV?

Does anyone know how many people sub to EI on DirecTV?

Originally Posted by Hemi 6.1

In 2008 Total MLB EI was almost 800,000.
I'm not sure how many of those were from D* exactly, But I remember catching a whisper thats its around 400,000 - 500,000. were D* subscribers.

I just read somewhere that Direct had about 80% of all of the EI subs which would mean that if your 800k is correct, then Direct would have about 640k EI subs.

Lets go with your lower 400k total. So if Direct has 400,000 EI subs, at $190 apiece (early bird special) that would bring in a total of $76,000,000 for the year. Does Direct pay MLB more than $76,000,000 for the year?

The package is actually closer to $200 for the year, so $200 x 400k = $80,000,000

If what I read is correct and Direct does have 80% of the EI subs, then 640k x $200 = $128,000,000. Does Direct pay MLB more than $128,000,000?

This is just going on the numbers that Hemi gave me. I have been searching the internet for both sub numbers and finincial info and have had no luck. I did find that Direct offered MLB $100million/yr to make it exclusive, but that deal fell apart.

Originally Posted by vampz26

Yup...I remember that. One of the reasons I left D* to begin with...

In response to Vampz's question above

Originally Posted by rad

The point is you and others have no idea what so ever D* is or isn't making or loosing, is just pulling numbers out your vary large a**. Do you honestly think that board of directors and officers of the company are signing contracts for sports packages knowing that they will loose money on every single one of them.

What is is that you have no facts, unless you have internal DirecTV documents that you can publish for all to see to back up your guesses.

Direct seems to be very tight lipped about disclosing the financial aspects of the deals between the leagues. The only one that is easy to find info about is ST. I wonder if it has to do with the fact that ST is exclusive and the others are not?

Originally Posted by DodgerKing

Does anyone know how many people sub to EI on DirecTV?

It doesn't really matter...what matters is:

1) The base cost of the package for carraige
2) The operational costs of the package.
3) does the number of subs to that package cost justify the expenditures in 1 and 2
4) is there current growth potential based on offering those packages
5) If either costs for 1 or 2 increase, and/or the subs costs increase to cover 1 and 2...will subs continue to be willing to pay.
6) sub loss in general...what are the risks in what seems to be a very tight business model...

There are a lot of variables here...and I can't even claim that my list here is complete! But playing google games isn't going to give you or anyone else the answers...there are people in the world who get paid a log of money to provide those answers...you may want to listen to them. I posted their opinions in the previous thread...

Originally Posted by DodgerKing

I just read somewhere that Direct had about 80% of all of the EI subs which would mean that if your 800k is correct, then Direct would have about 640k EI subs.

Lets go with your lower 400k total. So if Direct has 400,000 EI subs, at $190 apiece (early bird special) that would bring in a total of $76,000,000 for the year. Does Direct pay MLB more than $76,000,000 for the year?

The package is actually closer to $200 for the year, so $200 x 400k = $80,000,000

If what I read is correct and Direct does have 80% of the EI subs, then 640k x $200 = $128,000,000. Does Direct pay MLB more than $128,000,000?

This is just going on the numbers that Hemi gave me. I have been searching the internet for both sub numbers and finincial info and have had no luck. I did find that Direct offered MLB $100million/yr to make it exclusive, but that deal fell apart.

Do you know why and how it drove up costs? And why that is hurting them now?

No...

Originally Posted by DodgerKing

In response to Vampz's question above

my response...just so you can't cherry pick the previous thread for a nice cushy set-up for your own...

Originally Posted by rad

The point is you and others have no idea what so ever D* is or isn't making or loosing, is just pulling numbers out your vary large a**. Do you honestly think that board of directors and officers of the company are signing contracts for sports packages knowing that they will loose money on every single one of them.

What is is that you have no facts, unless you have internal DirecTV documents that you can publish for all to see to back up your guesses.

HA!!!!!!

Oh man, are you desperate in your D* rapture...even to leverage a personal attack...noted...

Look...none of us have 'internal documents'...so your little 'raising the bar' fallacy here is also noted...

The analysts and stock market have spoken! Sportspacks are a losing proposition! AS I'VE STATED!

The only one pulling numbers out of 'somewhere' was DK and I already called him on that...are you calling him on that too?!? I've only been posting what the analysts have been saying...and they are reasonable authority on this...a lot better authority than anyone playing google-games to rationalize a weak point.

At the end of the day, there is enough evidence on the whole to support the facts that sports packs are indeed a loosing proposition. Those facts being that subs aren't willing to pay, and content providers are asking too much....what more do you need here?

AS for your board of directors...they are perfectly content breaking even right now if it doesn't mean a loss...and I'm sure the 'risk' scenarios are on the table, but just like we don't have your 'documents', we aren't sitting in that room neither. All we have is what's been already said and posted by credible authority, and thats good enough for me...(and it should be good enough for you since you have nothing better to go on...other than hope and D* rapture)