nfl network?

[sateck01]

Here is the paragraph that is the basis for sateck01's assertion:

http://www.hollywoodreporter.com/thr/article_display.jsp?vnu_content_id=1000708995


All [BROADCAST] contracts. Not ST.

Now I am done..really

one last dig, the article said ALL, YOU added (broadcast), that was not in the article. it clearly states comcast bid on the ST, my point, there was bidding , for st.

forget ST, point is charlie is TOO cheap to give you poor subs the nfl channel, there is no other possible reason.

maybe no more space, i dont know, but he found the space for more compelling content,, THE KAREOKE channel nice move!!

 

[kavula]

Close to $300 per season for sunDAY games (no nights, mondays niight games, etc. sun DAY) and about only 6% (six percent) of the US. Not worth it. Charlie is smart! Why would you pay $2 billion for something only 6% of the people will watch? Lets see, math time. 2,000,000,000 divided by $300 per account equals 6.7 million subscriptions. Yeah, don't think so.

The new D* contract is for five-years and $3.5B. That means $700M a year. Looking at the D* website, you can buy 2005 ST for $219.99 ($20 off the regular price). You can add-on the ST Super-Fan package (read: HD) for $100. Figuring with the regular price of $239.99 and assuming 10% add the Super-Fan pack, that leaves an average transaction of ~$250 per year. I looked up an old D* press release from June 8, 2005; D* had 14.4M customers. $700M/$250=2.8M subscribers, or 14.4% of DirecTV's customer base. I don't know if D* has public their ST subscription numbers. But more than 14.4% would have to subscribe in order for ST to be profitable (remember, $700M goes to the NFL per year, but D* has other expenses on top of that to actually air ST).

 

[Tom Bombadil]

I have not being able to find anything definitive, but one article I read stated that the NFL Network fee for cable carriers was 25 cents per month per sub, not $4/month. Don't know what they got from DTV or what they asked of Charlie.

And I'm not belittling even a charge of 25 cents per month. That's close to $2.7M a month or over $32M a year from D*. I can understand Charlie's reluctance to incur another $30M or so of expenses. Thus, my earlier question about how D* might bundle it, perhaps within a premium sports tier.

 

[Tom Bombadil]

2.8M subscribers would be 19.4% of DTV's install base, not 14.4%. Making it even harder for them to cover the cost. And you would have to add in the cost of advertising and the cost of all of the transponders and their associated costs to carry it in both SD and HD to get the full cost of offering NFL:ST.

I think it is quite unlikely that DTV would reach full cost recovery of that package next year, when it's annual contract cost goes from $400M/year to $700M/year.

 

[kavula]

2.8M subscribers would be 19.4% of DTV's install base, not 14.4%. Making it even harder for them to cover the cost. And you would have to add in the cost of advertising and the cost of all of the transponders and their associated costs to carry it in both SD and HD to get the full cost of offering NFL:ST.

I think it is quite unlikely that DTV would reach full cost recovery of that package next year, when it's annual contract cost goes from $400M/year to $700M/year.

Exactly. Thanks for noticing my mistake, I was a little dyslexic with my numbers. I did figure 19.4%, but I stupidly put down 14.4% (as in 14.4M D* subscribers)

 

[GaryPen]

You must work for Arthur Anderson.