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MIKE REYNOLDS
Satellite subscribers love their sports and will pay more than $1 billion for the rights to watch out-of-market pro and college action by 2005.
According to industry publication DBS Investor, gross revenues for satellite sports packages will reach $1.09 billion by 2005, a total that almost doubles estimated expenditures of $516 million for 2000.
The publication projects that DBS services, offering NFL Sunday Ticket, NBA League Pass, MLB Extra Innings and NHL Center Ice, among other packages, will generate $516 million in gross revenue, netting more than $103 million from 4.1 million subscriptions this year, totals surpassing 1999 benchmarks by 20%.
DirecTV will garner the lion's share of this revenue, with DBS Investor pegging its take at $471.9 million in gross revenue, versus $44.5 million for EchoStar's Dish Network.
Looking ahead, DBS Investor's subscriber outlook estimates sports packages will attract 5.01 million subscribers in 2001. That base could expand 75.6% to 8.8 million by 2005.
During that span, the publication predicts industry gross revenue will virtually match the subscriber growth rate, gaining 74.7% to the aforementioned $1.09 billion. Based on the services receiving a 20% take, DBS sports packages should net DirecTV and Dish $219.5 million in 2005.
In the near term, DBS Investor calculates that gross revenue will jump 21.6% to $626.8 million in 2001.
As expected, NFL Sunday Ticket is the premier sports package today. DBS Investor gauges that DirecTV will list more than 1.2 million subcribers from its exclusive package this year, a group that will plunk down $194 million ($39 million net), or the equivalent of 37% of total sports package income. While the publication figures the gridiron offering will remain the leading seller through 2005, satellite could lose some of its take should the NFL open it up to cable competition when the current pact expires with DirecTV after the 2002 season.
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