Mohacsy's Safe Portfolio Member Forum

[10nisman]

It appears GOOGL has paid $2.5B for next season's NFL Sunday Ticket service. Direct TV has been saddled with this money loser at a cost of $1.5B per season. How does a streaming service with only 5MM subscribers break even when there are only 2MM Sunday Ticket subscribers. For GOOGL to break even on this niche market they'll need to attract 8.33MM subscribers at the current price.

YouTube allows GOOGL to scrape user info from a billion users but they still aren't profitable as a standalone. This deal isn't going to help in that area.

You don't understand the deal which is only $2 billion a year (vs. your $2.5 billion). ANYONE can be an NFL Ticket subscriber thru YouTube, not just a YouTubeTV subscriber --- thus, they're going to see significantly higher numbers than DirecTV which was sold only to DirecTV subscribers.