Originally Posted by coyoteaz
The NFL doesn't care how many people have the package; whatever makes them the most money is what they want. DirecTV eats a big loss on ST in order to make more money on the rest of the packages ST subscribers pay for. Anyone who's willing to pay $250 or more just for football is a high-value customer since they'll probably be ordering a bunch of other high-margin stuff like PPV, premium channels, etc..
I'm sorry but I think you need to do some more research on this. DirecTV makes a ton of money off of Sunday Ticket, just not that much from the individual customers. They make the majority of their money off of Bars/Restaurants that want the package, those places have to pay different prices depending upon the occupancy limit of the building. DirecTV charges them thousands of dollars every year to have the package. Most of those places also keep DirecTV year round and buy other packages too like MLB Extra Innings, NBA League Pass, etc.
Because DirecTV makes so much money off of the commercial subscribers they can afford to give discounts/freebies/etc to the home customers, especially home customers who are already high end customers (HD Access, Premium subscriptions, etc.).
The NFL only wants a certain number of home customers to get the package. Instead of saying it's only available to XXX number of customers and everyone after that gets turned down, they decide to play with the pricing of the package to keep subscriber numbers down. If the home package was too cheap too many people would subscribe to it. That would mean less people going to the bars/restaurants to watch the games, which would in turn make more bars/restaurants think about getting rid of the package because it doesn't help their business as much. Increased home customers would also decrease the viewership of the local channels airing the games, which would drive down the ad revenues on those channels. The NFL doesn't want either of these things to happen, so they tell DirecTV to raise the price of the package to keep subscriber numbers down.