Direc TV Sunday Ticket refunds could spread

NFL controversy creates dilemma for companies that depend on football

“This is an incredibly raw and emotional issue on both sides.”

Direc TV’s practice of giving refunds to some NFL Sunday Ticket subscribers upset about players kneeling during the national anthem puts the company at risk of looking as if it’s taking President Trump’s side in the controversy.

The satellite TV service, owned by AT&T, has been the exclusive provider for the NFL Sunday Ticket since 1994. But some NFL fans who subscribed to the $280 per season programming package, which lets viewers watch any game around the league, have contacted Direc TV seeking a refund in response to the NFL players’ protests. Direc TV does not disclose its Sunday Ticket subscriber numbers, but Bloomberg has estimated as many as 10% of the satellite TV provider’s 20.8 million customers subscribe to it.

Last week, Trump criticized the growing protests, saying NFL owners should fire players who do not stand during the national anthem played before kickoff. The protest began last season by then-San Francisco 49ers quarterback Colin Kaepernick to bring attention to the oppression of black people by the criminal justice system. His supporters say teams have refused to sign Kaepernick because of his protest.

The stakes are high. Keeping long-term customers happy is important because subscribers to Sunday Ticket and premium sports programming are highly valued in a marketplace where many consumers are leaving traditional pay-TV services and moving to streaming options such as Netflix and Hulu.

Direc TV must “get a grip on this now in order to avoid significant long-term losses,” said Michael Greeson, president and principal analyst for The Diffusion Group, a research firm in Plano, Texas. “Politically this could be interpreted as Direc TV agreeing with Trump that the issue will ultimately be determined by the fans and their wallets.”

This season, Kaepernick remains unsigned and more players began kneeling during the anthem in support. Essentially the pay-TV giant is caught between two groups of football fans — those who support Kaepernick and the reasons for his protest and those who don’t.

“It is a very volatile and tricky place for the NFL ... no matter what they do they are going to offend a group of users,” said Allen Adamson, a branding expert and founder of New York-based Brand Simple Consulting.

And consumers on either side

Allen Adamson, a branding expert and founder of Brand Simple Consulting

could opt to not attend or watch games, cut premium NFL channels from their pay-TV services and not buy NFL gear, he said. Some have documented their burning of team jerseys, hats and even season tickets on social media. “This is an incredibly raw and emotional issue on both sides,” Adamson said.

During this past week’s NFL games more than 250 players knelt during the national anthem at their respective games. Afterward, some Direc TV customers who subscribe to the Sunday Ticket package began contacting the company seeking to cancel and get a refund.

If the anti-NFL movement gains momentum, other pay-TV subscribers could ask their provider for refunds to downgrade their programming packages and punt premium channels such as the NFL Red Zone channel, which provides real-time updates of NFL games, and the NFL Network, which carries broadcasts of NFL games.

“All NFL conduits ... are Greeson said. susceptible,”

BRAD MILLS, USA TODAY SPORTS During this past week’s NFL games, more than 250 players knelt during the national anthem, including several of the Washington Redskins on Sunday night.