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Thread: Verizon to pay $2.25 billion to NFL for five-year streaming deal

  1. #16
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    Quote Originally Posted by cycledude View Post
    I sure don’t understand why they did that, seems like there would have been VERY MANY much smarter ways for Verizon to spend 2.5 BILLION.
    Yes like expanding fiber FTTH in their existing markets lol

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    I suppose it works kinda like advertising but 2.5 billion sure seems like a lot of advertising !

  3. #18
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    Quote Originally Posted by cycledude View Post
    I suppose it works kinda like advertising but 2.5 billion sure seems like a lot of advertising !
    Not really when Verizon knew their puppet Ajit Pai was going to repeal Net Neutrality and milk the American people out of billions.

  4. #19
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    Quote Originally Posted by tybo31316 View Post
    Not really when Verizon knew their puppet Ajit Pai was going to repeal Net Neutrality and milk the American people out of billions.
    Can we leave politics out of this board, please?

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    Verizon could have lowered their prices or invested in their network. Now every customer has to subsidize NFL content, even if they don't watch it. I wonder where else we see that business model....

  6. #21
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    I just want them 2 expand FTTH. I live in a city where they offer FTTH but they skipped my area . Been waiting since 06 lol

    That's where vz can invest there billions lol

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  7. #22
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    Quote Originally Posted by b1geast View Post
    Verizon could have lowered their prices or invested in their network. Now every customer has to subsidize NFL content, even if they don't watch it. I wonder where else we see that business model....
    I 100% agree. I want my Verizon bill to go towards the cellular network/infrastructure not towards entertainment I do not want or subscribed too. I pay DirecTV Now for my tv/entertainment content so I shouldn’t have to pay twice for the same content.

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    Quote Originally Posted by b1geast View Post
    Verizon could have lowered their prices or invested in their network. Now every customer has to subsidize NFL content, even if they don't watch it. I wonder where else we see that business model....
    Quote Originally Posted by JoeInPa View Post
    I 100% agree. I want my Verizon bill to go towards the cellular network/infrastructure not towards entertainment I do not want or subscribed too. I pay DirecTV Now for my tv/entertainment content so I shouldn’t have to pay twice for the same content.
    Frankly it's not very likely that your VZ wireless bill is "subsidizing NFL content". Oath had roughly $2 billion in revenue for Q3 2017, or $8 billion/year. The new NFL deal is $500 million/year for 5 years. Unless they're horribly mis-managing that money Oath revenue could easily cover new NFL expenses. I'd bet a nickel that those things remain on the "Media" side of the books, not wireless.

    At the same time Verizon CAPEX for 2018 is expected to be around $17 billion, the vast majority for wireless. So you're still getting substantial infrastructure investment for your wireless bill $.

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    Quote Originally Posted by dffdce View Post
    Frankly it's not very likely that your VZ wireless bill is "subsidizing NFL content". Oath had roughly $2 billion in revenue for Q3 2017, or $8 billion/year. The new NFL deal is $500 million/year for 5 years. Unless they're horribly mis-managing that money Oath revenue could easily cover new NFL expenses. I'd bet a nickel that those things remain on the "Media" side of the books, not wireless.

    At the same time Verizon CAPEX for 2018 is expected to be around $17 billion, the vast majority for wireless. So you're still getting substantial infrastructure investment for your wireless bill $.
    Regardless of how you itemize the cost, it still comes out of the pocket of Verizon subscribers. Its roughly $3/customer/year for the NFL deal. Sure that number is small, but that's just one deal. Verizon has many content partnerships via Go90 and Oath. Verizon decided to throttle video just to avoid expanding capacity, but they have no problem leveraging content deals for which they don't have the capacity to deliver. Its exactly the kind of Net Neutrality scenario that creates content tiers (i.e premium NFL). Verizon is double dipping here because the ISPs are now allowed to sell user data. Verizon wants a cut of that sweet ad revenue and charge for it at both ends (content and delivery). It would be like UPS/Fedex asking Amazon for a cut of their profits on top of the delivery charge. FCC calls this innovation, go figure.

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    Quote Originally Posted by b1geast View Post
    Verizon could have lowered their prices or invested in their network. Now every customer has to subsidize NFL content, even if they don't watch it. I wonder where else we see that business model....
    Unlimited data?

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    Quote Originally Posted by b1geast View Post
    Verizon could have lowered their prices or invested in their network. Now every customer has to subsidize NFL content, even if they don't watch it. I wonder where else we see that business model....
    Pick any cable network and too many service providers. The public has an insatiable appetite for identifying with athletes and teams. Those consumers have enough clout to overcome the objections of those with more sense and who are able to live without seeing an idiot athlete as some sort of hero or thinking their enjoyment of life hinges on the outcome of a meaningless game. Although it's not such a meaningless game to those living off the profits produced by the sheep that follow.

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