DirecTV NFL Sunday Ticket may lose $750 million in revenue for lost season
With the recent breakdown in negotiations
between the NFL Players Association and owners, there is a good chance that the 2011 NFL football season will be locked out.
Among the financial losses that would occur for a lost season to TV network affiliates and cable providers, DirecTV may lose up to $750 Million in revenue for its DirecTV NFL Sunday Ticket programming according to business analyst Craig Moffett of Sanford C. Bernstein & Co.
With a subscription to NFL Sunday Ticket, DirecTV viewers are able to watch every NFL football game on their home TV set for a yearly cost of $334.95. Moffet predicts losses between $600 million and $750 million based on last year's subscriber numbers plus an additional $44 million in new subscribers this year.
Although DirecTV stands to lose out on revenue, NBCSports.com notes
that the largest U.S. satellite service provider could save $420 million by not compensating the NFL for being able to provide NFL Sunday ticket services to its customers. Apparently, payment of these costs will be determined during the upcoming "lockout insurance" case between the NFL players union and owners.
As of this article's publishing, it appears that NFL.com has removed information
about the availability of a 2011 NFL Sunday Ticket service.