CBS, Fox contracts with NFL will prevent “significant reduction” in price of Sunday Ticket

[ROD-BOT]

CBS, Fox contracts with NFL will prevent "significant reduction" in price of Sunday Ticket - ProFootballTalk

Many are excited about the inevitability of NFL Sunday Ticket landing with a new provider for various reasons, from the possibility of improved customer service over DirecTV’s current “please hold” approach to the potential for expanded functionality and more options for viewing out-of-market...

profootballtalk.nbcsports.com

CBS, Fox contracts with NFL will prevent “significant reduction” in price of Sunday Ticket​

Many are excited about the inevitability of NFL Sunday Ticket landing with a new provider for various reasons, from the possibility of improved customer service over DirecTV’s current “please hold” approach to the potential for expanded functionality and more options for viewing out-of-market games. One important change won’t be made.

It won’t get a whole lot cheaper.

Alex Sherman of CNBC.com reports that language in the contracts between the NFL and CBS and Fox preclude a significant reduction in the price point for Sunday Ticket, which currently has a full-season price point in the range of $300. Likewise, an existing streaming service such as ESPN+ can’t simply add Sunday Ticket at no extra charge in order to boost subscribers.

It makes sense. CBS and Fox want people to watch the games offered in their local markets. If Sunday Ticket becomes too affordable, it’s see you later to normal Sunday viewing of the affiliates in a given area.

While I’ve got no reason to doubt the accuracy of Sherman’s report, I’d like to approach it from a different perspective. The NFL negotiated new contracts with CBS and Fox last year, knowing full well that the clock is ticking on Sunday Ticket. If the NFL wanted to create a pathway for cheaper access to Sunday Ticket, it could have changed the term in the CBS and Fox deals.

The NFL didn’t. Presumably, it didn’t want to. CBS and Fox likely would have offered much less to the NFL if it were indeed easier and cheaper for fans to get Sunday Ticket, even though the games available in the local market via CBS and Fox are blacked out. The NFL likewise positioned itself for a bigger payday for Sunday Ticket, given that anyone who wants it will be forking over significant money for the privilege of watching games other than those offered locally for free.

In other words, the NFL is using the full extent of its broadcast antitrust exemption to maximize revenue from CBS, Fox, and DirecTV by agreeing to and/or imposing terms that make it more expensive for fans who, for example, live in Jacksonville but root for the Steelers to see all Pittsburgh games.

There are inherent antitrust problems with telling fans their only way, if they live in Jacksonville, to see all Steelers games will be to buy the entirety of the Sunday Ticket package. Fans should be able to buy Sunday Ticket one game at a time, or one week at a time. Instead, it was — and will still be — a significant expenditure for any fans who don’t live in the market where their favorite team plays to follow the one team that drew them to the NFL in the first place.

Think about that one. The NFL wants you to have a favorite team. But the NFL subtly steers you toward the team where you live, by making it much more expensive to see the team you’d rather watch. There was a chance last year to make it cheaper by revising terms that protect the local CBS and Fox games, and the NFL didn’t do it.

Thus, while football is family, greed is good.

 

[Picked4td]

and this my friends is why they there are illegal streams

 

[Merlin]

It is funny how they haven't figured out how to offer one game at a time like renting a movie. Tying the games in bulk with an old model is sheer laziness.

Also their streaming service sucks ass. The vid software they switched to ruined all 22 which is their most underrated product. If they don't fix that they are going to lose a lot of money this year.

 

[den-the-coach]

and this my friends is why they there are illegal streams

You stream, I stream, we all stream for Illegal streams.

 

[MadGoat]

It is funny how they haven't figured out how to offer one game at a time like renting a movie. Tying the games in bulk with an old model is sheer laziness.

Also their streaming service sucks ass. The vid software they switched to ruined all 22 which is their most underrated product. If they don't fix that they are going to lose a lot of money this year.

It's economics. Apple certainly has the platform for this, but it doesn't appear to be on the table while Fox and CBS are paying billions for Sunday local broadcast rights. It would require that a content deliverer pay so much for on demand rights that the local distribution rights become the secondary source of broadcast revenue. Even with the explosion of legal streaming, I feel like that's at least 10 years away still.

 

[Merlin]

It's economics. Apple certainly has the platform for this, but it doesn't appear to be on the table while Fox and CBS are paying billions for Sunday local broadcast rights. It would require that a content deliverer pay so much for on demand rights that the local distribution rights become the secondary source of broadcast revenue. Even with the explosion of legal streaming, I feel like that's at least 10 years away still.

I doubt it will be ten years. When there's money to be made people find a way. But I do think you're right in that it's more complicated than I was making it. Maybe sheer laziness doesn't cover why it's not a reality yet.

 

[MadGoat]

I doubt it will be ten years. When there's money to be made people find a way. But I do think you're right in that it's more complicated than I was making it. Maybe sheer laziness doesn't cover why it's not a reality yet.

Believe me, I am counting down the time as well. I will likely pay for whatever package they sell next year now that DirecTV isn't attached to it. $200 a year works out to about $20 a game for me since I already get a decent amount on Rams games on regular TV, so maybe that would be enough per game to satisfy Fox and CBS's requirement that consumers pay a premium price for Sunday Ticket.

 

[Psycho_X]

The price of Sunday ticket was never a problem to me.... $300ish to get to watch all NFL games seems fair to me. It's having to also pay over $1000 a year for Directv that I don't want because it's a dying medium with the worst customer service where I draw the line. I just want to pay for NFL games... that's all I want... make it happen NFL. Otherwise, I'll find other means... which I do by still paying the NFL for the international package which is only $140 for all NFL games. Only difference there is I'm paying $100 for an annual VPN subscription to get around their fucktarded rules for U.S. customers... $100 I'd gladly pay the NFL to avoid the VPN part altogether.

 

[OldSchool]

View: https://twitter.com/MySportsUpdate/status/1545426113819820033

 

[bubbaramfan]

Fuck 'em. I've been using Sportstream.tv for the last six years. You can get every NFL, baseball or soccer game in real time. Yeah, you have to deal with some pop-up from time to time, but , hey, it's free.

 

[Psycho_X]

View: https://twitter.com/MySportsUpdate/status/1545426113819820033

Got to be Amazon right? They have the money and clout to basically get whatever they want. I can see it now, $400 for full access to all games via app or $300 if prime member to watch through prime video. I'd be ok with something like that.

 

[OldSchool]

Got to be Amazon right? They have the money and clout to basically get whatever they want. I can see it now, $400 for full access to all games via app or $300 if prime member to watch through prime video. I'd be ok with something like that.

It makes sense with them. But one thing to consider could be them launching their own streaming service like MLB.tv or it could be one of the "network" streamers like paramount+ or peacock maybe even apple.tv

Going to be interesting what happens.

 

[Psycho_X]

It makes sense with them. But one thing to consider could be them launching their own streaming service like MLB.tv or it could be one of the "network" streamers like paramount+ or peacock maybe even apple.tv

Going to be interesting what happens.

Yeah maybe, apple I could see being a possibility. Whatever they do I just hope it's a single option to get all games.

 

[CGI_Ram]

It makes sense with them. But one thing to consider could be them launching their own streaming service like MLB.tv or it could be one of the "network" streamers like paramount+ or peacock maybe even apple.tv

Going to be interesting what happens.

True. I was watching a documentary on why Netflix could be in trouble… it centered around “why do movie companies need a streaming provider? Just become one”. Same argument applies to the NFL.

 

[OldSchool]

True. I was watching a documentary on why Netflix could be in trouble… it centered around “why do movie companies need a streaming provider? Just become one”. Same argument applies to the NFL.

MLB has had theirs for year, I'm honestly surprised that the NFL which is bigger doesn't do the same. They have the network already just add to it with an app/stream service.

 

[den-the-coach]

True. I was watching a documentary on why Netflix could be in trouble… it centered around “why do movie companies need a streaming provider? Just become one”. Same argument applies to the NFL.

You need the internet and thus you have to get that to the households. Fewer companies have that capability so they will just absolve the movie companies like Netflix for example and thus, we will be dealing with the likes of Xfinity & Spectrum all over again.

 

[CGI_Ram]

You need the internet and thus you have to get that to the households.

How does Netflix have an advantage here?

 

[den-the-coach]

How does Netflix have an advantage here?

They don't, IMO, they are going to start being offered by internet providers as part of a package deal. Leading to the possibility of just being bought out. Too many people sharing accounts hurting their revenue, we all do it, but it doesn't help the streamers revenue because they are only a one trick pony.

 

[1maGoh]

True. I was watching a documentary on why Netflix could be in trouble… it centered around “why do movie companies need a streaming provider? Just become one”. Same argument applies to the NFL.

Hedgehog concept and risk mitigation. If I'm a movie company I probably don't want to take on the work of creating *yet another* streaming service and hoping enough people like my movies enough to pay me $5 to $15 per month. It's hard to create enough content quickly enough to justify a monthly cost. And if the network goes down I personally look bad. Not to mention losing focus on the thing I'm good at: movie making.

They can avoid all that by sticking to what they're good at. Just make good movies, sell the rights to someone else, let them assume the risk, and move on to the next movie.

That's why it makes sense for Disney and major networks to make streaming services, but not an individual movie company. They have huge back catalogs to keep the masses entertained and were already in the business of pumping out shit tons of content every year.

 

[dieterbrock]

I hate to admit it, but ESPN+ would be the perfect fit