Tuesday, March 24, 2009

DirecTV Agrees to Pay $4B to Extend Exclusive NFL Sunday Ticket Deal

The National Football League clearly knows the power of its brand and DirecTV clearly knows the power of exclusivity.  The two entities have reached a deal to extend the contract allowing the satellite television provider the sole rights to carry NFL Sunday Ticket for four years.  The agreed upon price: $4 billion!  According to the Wall Street Journal, that is an increase of $300 million over the current deal, which expires after the 2010 season.

I am a longtime DirecTV subscriber.  I signed up in February 2000, shortly after the conclusion of the 1999 NFL season.  The driving force behind my decision was a substandard cable service within the apartment complex where I was living.  It was not Time Warner Cable which serves the rest of the local community.  Equally important in my decision-- NFL Sunday Ticket.  I relished the notion that I could watch my beloved, however mired in sub-mediocrity, Detroit Lions from the comfort of my living room each week.

To this day, DirecTV keeps my business because of NFL Sunday Ticket.  But with each contract renewal between the provider and the NFL has come subscription price increases.  I seem to remember paying about $170 per season when I first signed up for Sunday Ticket.  Now, it's pushing $300.  If this 43% rights fee increase translate into a 43% subscription fee increase, fans are looking at a possible $429 per season tab.

The NFL has already priced most fans out of the stadium experience.  I hope they don't do the same to Sunday Ticket customers.

Oh, Good Evening!

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