DirecTV May Lose Sales More than $600 Million in NFL-Players Dispute

Alex Sherman of Bloomberg reports DirecTV, the largest U.S. satellite-television provider, could lose out on more than $600 million in revenue this year if the National Football League cancels the 2011 season, according to analysts’ estimates.

DirecTV’s NFL Sunday Ticket, which allows viewers to watch every NFL game, generated between $600 million and $750 million in subscription revenue last season, said Craig Moffett of Sanford C. Bernstein & Co. The company would have added another $44 million in new Sunday Ticket subscribers this year if it got the same number as last year, he said.

The football programming, which runs $335 per season on top of regular subscription fees and isn’t offered by any other operator, would also cost El Segundo, California-based DirecTV a branding tool for drawing new customers to other television services, diminishing growth in the near term.

“Usually Sunday Ticket brings them a number of new subscribers,” said New York-based Moffett, who has a “market perform” rating on the company’s stock and doesn’t own any. “They are losing one of their biggest marketing draws.”

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One Response to “DirecTV May Lose Sales More than $600 Million in NFL-Players Dispute”

  1. Joel V says:

    I will be so upset if there is not an NFL season this year. I am sure that DirecTV would be even more upset than I would be. Thankfully, I have DISH Network and the Red Zone package added to my subscription. As a customer and employee of DISH Network, I can say that the Red Zone is one awesome package. I can watch every touchdown, from every team at home. So if there is going to be an NFL season this year, I will be happy paying the $7 a month, rather than having to pay $335 for something that might not even be there. I hope everything works out!