At one point, Direct TV wanted to drop the price of the service so they could add subscribers. Bonn argued the league wasn’t happy with the plan to drop the price because a lower price would affect ratings in local markets:
Bonn went right into the case from the moment she stood up, addressing DirecTV’s decision on April 20, 2012, to reduce the price of Sunday Ticket by 30 percent — and by explaining the league’s reaction to it. She said that Steve Bornstein (who ran NFL Media at the time) told Brian Rolapp (who runs it now) that Bornstein wished he’d known about it, so that he could have briefed Commissioner Roger Goodell and Patriots owner Robert Kraft, the chairman of the NFL’s broadcasting committee.
She argued that they wouldn’t have been happy about the plan, because the NFL wanted Sunday Ticket to be priced at a level that would deter many from purchasing it, steering them toward the games available in their local markets.
Bonn quoted Kraft’s disposition testimony. Kraft was worried that offering the subscription package at a lower price would “devalue” packages from CBS and FOX, and those networks would cease to pay the league and its teams at the same price.
The NFL was willing to sacrifice fans
Apr 24, 2024; Detroit, MI, USA; NFL commissioner Roger Goodell speaks at the Play Football Prospect Clinic at The Corner Ballpark. Mandatory Credit: Kirby Lee-USA TODAY Sports
The league had to know that pricing out the subscription service would reduce overall viewership. Because of economic changes in recent decades, many fans have moved across the country but have retained loyalty to the teams they grew up watching.
For example, say a Chicago Bears fan moved to Austin, TX. They would want Sunday Ticket to watch the Bears instead of their local market choices of the Houston Texans and Dallas Cowboys. A high price might keep that Bears fan from both subscribing to Sunday Ticket and watching games on the local market.
Local fans might not want to watch meaningless games toward the end of a regular season when their favorite team is unlikely to make the playoffs. A high subscription service would keep them from watching games with playoff interest.
Bonn argued the league didn’t care because keeping their hands in both pots this way gave the league, Direct TV, FOX, and CBS their best chance to maximize revenue.
At the expense of their fans.
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Publish date : 2024-07-10 03:00:00
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