Google Scores NFL Sunday Ticket Package

[Scott Greczkowski]

NFL 'Sunday Ticket' goes to YouTube in seven-year, $2 billion annual deal

The NFL reached a deal with Google's YouTube for its "Sunday Ticket" subscription package.

www.cnbc.com

 

[satjay]

Interesting that it ended up there, did not know about the primetime service, where it sounds like for those that don't want the Youtube full service, you can go with just the Sunday ticket? via an app, If I am understanding right

 

[Radioguy41]

So it went from a company with 15 million subs to a company with 5 million subs. Hmmm, let's see how the economics works out for Google since it is apparently for out-of-market games only. Let's see how many people are willing to sub under those conditions. DTV was paying $1.5B with 15M subs and losing $500M per year. YTV is paying $2B with 5M subs so what is the break even point, 20M subs, 25M subs? And oh by the way, the package does not include commercial rights. This is not a longshot I'd be willing to bet on but time will tell.

 

[Bruce]

So it went from a company with 15 million subs to a company with 5 million subs.

Your numbers are incorrect, they have a tad over 13 Million, but that includes Uverse and DirecTV Stream.

Rumors are Uverse has about 2 Million left, Stream another million, so the Sat side 10 Million which only offer ST, not the others.

From here-

DIRECTV's video subscriber base (combined DIRECTV, U-verse, DIRECTV Stream) is the third largest traditional multi-channel video programming distributor (MVPD) in the U.S. with approximately 13.3 million subscribers at the end of 3Q22

https://www.fitchratings.com/research/corporate-finance/fitch-affirms-directv-entertainment-holdings-llc-at-bb-outlook-stable-05-12-2022

. Hmmm, let's see how the economics works out for Google since it is apparently for out-of-market games only. Let's see how many people are willing to sub under those conditions. DTV was paying $1.5B with 15M subs and losing $500M per year. YTV is paying $2B with 5M subs so what is the break even point, 20M subs, 25M subs? And oh by the way, the package does not include commercial rights. This is not a longshot I'd be willing to bet on but time will tell.

Again, you are incorrect, it will be offered to everyone, not just YTTV subscribers.

 

[SamCdbs]

Again, you are incorrect, it will be offered to everyone, not just YTTV subscribers.

The poster, while he gets you googled up “how many subscribers does DirecTV has” (do you ever tire of posting it, maybe you should just change it to the letter “M” and we would all know you were saying it, and misinterpreting what it means, and save all the electronic ink) has the math correct.

First, there is no clear statement that it will be available “to everyone”. Just that the app will be available in a marketplace you never heard of before last Monday. No word that that means you won’t have to buy other things first, or at what price.

Second, his math is correct. The break even point for this, as predicted, is more people than watch the “free” games.

Basic understanding of the business.

 

[satjay]

Any projections/guesses on what they may charge for Sunday Ticket, same price point as what Directv charged?

 

[chuckster_dude]

The headline is a bit misleading on that CNBC story.....Google is paying $2 billion per year for the rights. The total is approx $14 billion over 7 years but what's give or take a billion these days.

 

[Mochuf]

Google makes so much money on advertising that it has never been afraid to lose money on a venture (Stadia and Google + for example). But those money losing ventures are usually short lived. We'll see how they make money on ST and what they'll do if ST doesn't make them any money. I honestly don't see them making much, if anything, on this.

 

[SamCdbs]

Any projections/guesses on what they may charge for Sunday Ticket, same price point as what Directv charged?

$300 with YTTV, $400 for some kind of enhanced package.

IF (it won’t be) truly a la carte $900. If sold (will be) as an app if you first subscribe to a number other streaming that YouTube resells and to YouTube plus (the commercial free version of regular YouTube, $700.

And Google will lose money at those rates. The break even point is more people than watch the “free” games. And, unlike DirecTV, YTTV is a poor set of channels, mainly aimed at people trying to save money. The opposite of a ST customer.

 

[navychop]

I am gobsmacked. But as stated, the other shoe is what deal will be made, and with who, for commercial establishments.

Just very glad Amazon did not get it. I foresee major losses and I don’t want Amazon looking for my wallet.

 

[navychop]

PLACE YOUR BETS!
PLACE YOUR BETS!

How many subs will DTV have a year from now, as custies learn ST is elsewhere?

 

[Bruce]

PLACE YOUR BETS!
PLACE YOUR BETS!

How many subs will DTV have a year from now, as custies learn ST is elsewhere?

The Satellite part has been losing 400,000-500,000 a quarter already, so in addition to that, I would guess another million.

 

[Juan]

PLACE YOUR BETS!
PLACE YOUR BETS!

How many subs will DTV have a year from now, as custies learn ST is elsewhere?

I bet profit increases by 1.5 billion

 

[stardust3]

I suppose they're counting on a bunch of football fans.

 

[Ronnie-]

First, there is no clear statement that it will be available “to everyone”.

IF (it won’t be) truly a la carte

From the link

stand-alone a la carte option on YouTube Primetime Channels

I’m honestly not sure how it could be more clear.

 

[meStevo]

Google makes so much money on advertising that it has never been afraid to lose money on a venture (Stadia and Google + for example). But those money losing ventures are usually short lived. We'll see how they make money on ST and what they'll do if ST doesn't make them any money. I honestly don't see them making much, if anything, on this.

It leans into a lot of their existing value propositions. New customers getting a la carte can be offered incentives to try YouTubeTV or when they see an ad for Showtime will see that's available for a free trial with just a couple clicks. Advertising is their bread and butter and there are opportunities abound with this setup. There are also sponsorship and other components to it, so not necessarily a matter of recouping every cent with the subscription fee.

As I mentioned in the other thread, if you do try YTTV ping someone w/ a sub for a referral, you'll both save money.

 

[Bruce]

More stories are popping out why ST going to Google is a good thing-

The New NFL Sunday Ticket Deal Will Accelerate Cord-Cutting

New VIP+ Analysis: Making Sunday Ticket available to all consumers may impact the spikes in TV subscription seen around the NFL season

variety.com

and here

YouTube’s NFL Sunday Ticket deal is a brilliant move for its subscription future

It’s all about the bundle, whether that’s TV or streaming services.

www.theverge.com

 

[dlma1]

No dog in this hunt. I am only a "lurker" as a former DTV customer. But this looks like another nail in DTV's coffin to me. As for Alphabet, a company with 1.14 Trillion dollar market cap, I am sure that it can absorb any loses for a long time.

 

[robjlevin]

Why YouTube spent the money on NFL Sunday Ticket

YouTube chief product officer Neal Mohan tells us the steaming giant is making a big bet on TVs, where it’s seeing the fastest growth.

www.theverge.com

Rather than have it lost in a very, very long discussion, thought I'd add this on its own. There is no more ambiguity.

The highlights:

• Residential package only.
• Absolutely available stand-alone
• Nothing new on 4K
• No pricing yet.

 

[Bruce]

more stuff about the switch-

Why YouTube spent the money on NFL Sunday Ticket

YouTube chief product officer Neal Mohan tells us the steaming giant is making a big bet on TVs, where it’s seeing the fastest growth.

www.theverge.com