Join Date: Jun 2010
Originally Posted by isired
I think you all are underestimating the size of direct tv (by US subscribers):
Rank MSO BasicVideoSubscribers
1 Comcast Corporation 22,002,000
2 DirecTV 19,981,000
3 Dish Network Corporation 14,042,000
4 Time Warner Cable, Inc. 12,344,000
5 Cox Communications, Inc.1 4,595,000
6 Verizon Communications, Inc. 4,592,000
7 AT&T, Inc. 4,344,000
8 Charter Communications, Inc. 4,197,000
9 Cablevision Systems Corporation 3,247,000
10 Bright House Networks LLC1 2,038,000
11 Suddenlink Communications1 1,230,000
12 Mediacom Communications Corp 1,019,000
13 WideOpenWest Networks, LLC1 710,000
14 CableOne, Inc. 605,000
15 RCN Corp.1 331,000
16 Atlantic Broadband Group, LLC 251,000
17 Armstrong Cable Services 237,000
18 Midcontinent Communications 234,000
19 Service Electric Cable TV Inc1 215,000
20 MetroCast Cablevision 174,000
Besides that, sports has always been a draw for satellite, for out of market college and pro sports fans.
Using your numbers, Direct TV is 21% of the market. While certainly significant, the exclusive deal means 79% of the NFL's potential customers cannot buy the Sunday Ticket.
Again using your numbers, that is 79.4m households w/o access to the product.
If only 10% of the 79.4m households bought the Sunday Ticket and if the NFL's share of the revenue was $150 per household, the NFL would get $1.146B per year!!!
I don't know of a single ("Solvent") business that would intentionally prevent 79% of the market from buying their product.