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Author: Subject: DirecTV dispute
Milky
And I am AWESOME






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Registered 1-24-2002
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posted on 2-7-2002 at 10:44 PM Edit Post
DirecTV dispute

Can someone explain to me what exactly the sticking point of these negotiations is. Since I lost DirecTV as an option so many months ago, I also recently found out that the only good bar that used to show WWF PPVs has stopped doing so.

Here's what I understand. The WWF wants to pay less for their rights to air on the DirecTV system. The WWF used to bring in a huge share of the total buyrates for special event PPVs on all satelite systems. Thus if we were talking about television, networks could charge more for advertising space and therefore cut the WWF some slack in the price for the timeslot as everyone would still be making lots of money.

Now here's where I'm lost. As I understand it, or as it has been explained to me, DirecTV charges a flat rate for any company wishing to broadcast on a particular channel of their network. They don't reap much, if any percentage from the profit of the buyrate itself. Therefore, in DirecTV's eyes, why cut Vince any better a deal when they'll make the same amount of profit by selling the sapce to Columbia Pictures or AWA Wrestling?

Was the person who explained things to me this way full of shit? What other factors am I ignoring? Does Vince have any bargaining power at all? What are the chances of me watching Wrestlemania from home this year?

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Kneecaps
Creepy Little Bastard






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posted on 2-8-2002 at 04:43 AM Edit Post
It was all about how much of the revenue from the PPV would go to each company. I heard it was a fickle little amount, but they just couldn't come to an agreement on who would get how much. Until now, of course- It looks like they just agreed on a number the other day. Cool.
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OORick
Monkey on a Rock






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posted on 2-8-2002 at 07:45 PM Edit Post
Here's my understanding...

DirecTV was being treated as a retailer/reseller by the WWF. As such, their cut of a WWF PPV was pretty small...

In Demand is a cable pay-per-view distributor (not just a retailer), and they get to keep almost half of all PPV revenues. They distribute PPVs to just about every cable system in the country, who get a smaller cut as the "retail outlet" in the transaction, so that's why they get the special deal.

DirecTV wanted to be treated like a distributor, rather than as a retailer; the WWF didn't want to do that. Thus, the problems....



Rick
rick@onlineonslaught.com

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