Why Disney should buy the Sunday Ticket Rights.

[seascape]

The NFL currently gets 1.5 billion a year for the Sunday Ticket Plan. Disney should out bid the others for this package if they also received rebroadcasting rights on ESPN+. They could then sell it as an upgrade for customer's that subscribe to either ESPN+ or Hulu with live TV. I am sure they would pickup a minimum of 10 million subscribers for the additional package and signup millions more for either or both ESPN+ or Hulu. Add in the advertising revenue for the live and rebroadcasted games and I am sure they could afford 2.5 billion for the package and make a nice profit. The already won their currect NFL package for just a 42% increase in NFL fees versus over 100% from everyone else but Disney also gained 6 games a year for a total of 23 games versus 17 games, or 35.3% more games. Disney got a steal and is the only winner according to MoffettNathanson Research.

 

[FlutteringLights]

They got a fantastic deal compared to the other guys for games rights, but the economics around Sunday Ticket are difficult to get around. The truth is, the nfl likely isn’t going to get anywhere near what DTV paid years ago. That’s why they decided to opt out of their early termination option a couple of years ago.