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This weekend and the week afterward will go a long way in determining whether James Cameron’s “Avatar: The Way of Water” will have a dominant box-office run.
The Disney movie is slated to be the first of four sequels to 2009’s “Avatar,” which is the highest-grossing film of all time.
Box-office analysts often look to the second week drop as an indicator of whether a film will have longevity at the box office or may fizzle quickly.

Avatar: The Way of Water
Courtesy: Disney Co. 

All eyes are on “Avatar: The Way of Water’s” second week at the box office.
James Cameron’s long-awaited sequel to the highest-grossing film of all time fell short of initial box-office expectations during its debut last week. The film snared $134 million domestically, short of the $175 million that industry analysts had predicted, and just under the $135 million to $150 million range that Disney had forecast.

While “The Way of Water” tied with Warner Bros.’ “The Batman” for the fifth-highest opening of the year and nearly doubled the opening weekend of its predecessor, the softer-than-expected opening has left many box-office analysts wondering whether the film will be able to meet Cameron’s lofty goal of $2 billion at the global box office.
As of Thursday, the film had tallied more than $600 million worldwide, a little more than one-fourth of the way to Cameron’s target for profitability.
The movie’s second week will help clarify its longer-term box-office prospects. Showbiz analysts often look to the second week drop as an indicator of whether a film will have longevity at the box office or may fizzle quickly.
For most films, a 50% to 70% drop is the norm. Major tentpole features from Disney’s Marvel Cinematic Universe often see box-office ticket sales fall in this range after reaching sky-high opening weekend numbers. While those kinds of films can continue on toward billion-dollar or higher theatrical runs, this metric can indicate whether word-of-mouth is bringing new audiences to theaters or whether interest is waning.
A key example is Paramount and Skydance’s “Top Gun: Maverick” which saw ticket sales decline just 29% in its second week in theaters. The film has generated more than $1.4 billion at the global box office, and played in theaters for more than 200 days before being made available on Paramount+.

“I think ‘Avatar 2’ will continue to slay all day through the year and into the next,” said Jeff Bock, senior analyst at Exhibitor Relations. “The drop will be sizable, sure, but not like a traditional Marvel drop as Cameron’s film is really the only game in town for families for weeks, if not months.”

The next major blockbuster — Disney and Marvel’s “Ant-Man and the Wasp: Quantumania” — doesn’t hit theaters until Feb. 17, leaving “The Way of Water” a long stretch at the box office without hefty competition.
Not to mention, the days between Christmas and New Year’s eves can account for as much as 5% of the year’s total box-office receipts, according to data from Comscore. Prior to the Covid pandemic, that week averaged between $400 million and $600 million in ticket sales.
Of course, in the wake of the pandemic, the box office has been trailing 2019 levels by around 35%. Without a slew of typical holiday releases, the final stretch of the year could be significantly lower than previous years.
Compounding this is mixed word-of-mouth about “The Way of Water.” While critics have lauded Cameron’s visuals, saying that the movie needs to be seen on the biggest screen possible, a large portion have also expressed disappointment in Cameron’s script and its more than three-hour run time. Still, the movie received high marks in audience surveys, including an “A” from CinemaScore and a 93% “fresh” audience rating on Rotten Tomatoes.

James Cameron’s track record

Director James Cameron attends the “Avatar: The Way of Water” world premiere at the Odeon Luxe Leicester Square on December 06, 2022 in London, England. (Photo by Joe Maher/Getty Images)
Joe Maher | Getty Images Entertainment | Getty Images

Still, few in the industry are betting against Cameron. The filmmaker has a history of long-running hits at the box office, including the original “Avatar” (2009) and “Titanic” (1997).
“This second weekend has long been destined for deflated numbers due to Christmas Eve, but that’s why it’s so critical to view the film’s run based on the strength of weekdays and weekends combined over the long holiday corridor,” said Shawn Robbins, chief analyst at BoxOffice.com. “There have been a number of pre-determined headlines about this sequel for years, but let’s wait and reserve judgment based on what the global numbers tell us over the next couple of weeks.”
Aiding the film’s box office has been a significant push for 3D and premium format tickets, which are more expensive than traditional seats. The average ticket for “The Way of Water” is projected to be around $14.76 this weekend, according to data from EntTelligence. Meanwhile, Universal’s “Puss in Boots: The Last Wish,” Sony’s “I Wanna Dance with Somebody” and Paramount’s “Babylon” are expected to generate around $11 per ticket.
“James Cameron is no stranger to the importance of the long game when it comes to box office,” said Paul Dergarabedian, senior media analyst at Comscore. “His films [have previously relied] heavily on the currency of audience excitement building over time rather than an opening weekend pop.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Puss in Boots: The Last Wish.” Rotten Tomatoes is owned by Fandango, a subsidiary of Comcast.

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Legal weed markets across the country are struggling to compete with nontaxed, illicit businesses, where consumers get better deals, despite potential health risks.
In New York City, crackdowns are beginning to contain the “tens of thousands” illicit businesses contending with the state’s newly launched legal market.
Cannabis company executives are sounding the alarm, especially as critical federal banking reform stalls in Congress.

A man smokes marijuana during a hip-hop performance at the 11th annual block party held by the Bushwick Collective in Brooklyn, New York, on June 4, 2022.
Alex Kent | AFP | Getty Images

Thriving, unregulated marijuana businesses across the United States are undercutting legal markets awaiting banking and tax reform.
While it’s an issue in states like Colorado, Michigan and Washington, it’s a much bigger problem in New York. Unlicensed businesses are “taking a pretty hefty percent of the potential market share,” according to Amanda Reiman, a researcher at cannabis intelligence company New Frontier Data. None of the 36 newly licensed dispensaries in New York have even started operating yet.

The licensing program in New York is years behind the state’s sophisticated black market. New York doled out its first set of dispensary licenses last month, but recreational marijuana has been legal in the state for nearly two years.
“These shops are masquerading as safe, legal entities,” said Trivette Knowles, a press officer at the New York State Office of Cannabis Management, “but there are currently no licensed sales happening right now in the state of New York.” 
The problem is particularly cumbersome in New York City, Knowles said. Weed can be bought from brick-and-mortar storefronts, trucks, pop-up shops, bodegas and even courier services that deliver directly to consumers. His office has sent out cease-and-desist letters to some of the unlicensed operators in the state, but some trade groups say there are likely tens of thousands of illegal businesses in the city alone.  
“It’s almost like Whac-a-Mole,” said Reiman, of New Frontier Data. “If one goes down, another one just pops up.”
Reiman said her firm doesn’t track data on the many illicit businesses that have taken root across the country, but she estimates the national market is worth around $60 billion. The legally regulated industry is just half that, she said.

“When you have dispensaries and distribution systems that pretty much mimic regulated markets, it can be really difficult to get people to move over,” Reiman said.
Unregulated markets, she said, also pose serious health risks for consumers. A November study commissioned by the New York Medical Cannabis Industry Association found that after reviewing cannabis products from 20 illicit stores in New York City, about 40% contained harmful contaminants such as E.coli, lead and salmonella.
Besides cease-and-desist letters, New York City has begun cracking down in other ways, too.
In December, Mayor Eric Adams announced the seizure of more than $4 million worth of products being sold illegally. His office also issued over 500 civil and criminal summonses as part of a two-week pilot program with various law enforcement agencies.
“We will not let the economic opportunities that legal cannabis offers be taken for a ride by unlicensed establishments,” the mayor said at a news conference.

Banking reform on hold

For the third time this year, the Secure and Fair Enforcement Banking Act, also known as SAFE, hit a wall in Congress after lawmakers excluded it from a $1.7 trillion government funding bill. The measure would have fortified the legal cannabis industry by allowing licensed businesses to access traditional banking services.
Under federal law, banks and credit unions face federal prosecution and penalties if they provide services to legal cannabis businesses since it is still a Schedule I substance, along with heroin and LSD. Schedule I substances, according to the federal Drug Enforcement Administration, are defined as drugs with no currently accepted medical use and a high potential for abuse. 
Without access to traditional banks, legal marijuana businesses are forced to operate in a cash-only model, and they can’t access loans, capital or even use basic bank accounts.
“This is, sadly, a win for the illegal market, which pays no taxes and has no regulations or testing safeties in place,” said Boris Jordan, Curaleaf co-founder and executive chairman.
Jordan said the “entire industry will suffer as a result.”
The SAFE Act, which has received some bipartisan support, will have to be reintroduced during next year’s congressional session, when Republicans take control of the House.
Executives such as Brady Cobb, CEO of Sunburn Cannabis, said the path forward is “somewhat murky given the new political composition of the chambers.”

Sticker shock

Consumers often turn to the black market for weed because they get a better deal there, said cannabis tax lawyer Jason Klimek. He has advised various cannabis companies and currently serves as the chair of the Tax Committee of the New York State Bar Association’s Cannabis Law Section.
Klimek authored a study on New York’s cannabis taxes that predicts legal cannabis in the state will likely double prices due to high state and federal taxes.
He said the hefty price tag for legal weed in New York will “cause legal adult use of cannabis to be that much more expensive than the illicit market,” and leave customers with “sticker shock.” He said look no further than California for example, where high taxes and competition from unlicensed businesses are still a problem for its legal industry six years out from its launch.
“California is getting decimated by their illicit market that’s thriving because legal products are more expensive, more regulated, and have more taxes,” he said. “They just couldn’t compete.”
Some relief came in July when Gov. Gavin Newsom cut the state’s cultivation tax, which offered a lifeline to small cultivators. But high taxes still plague adoption of the regulated market. Marijuana sold at California retailers include a 15% excise tax, a state sales tax of 7.25% and local taxes of up to 15%.

Marijuana for sale at the “Freedom Festival” marijuana expo Wednesday, April 20, 2022, in Bensenville, Illinois.
Erin Hooley | Tribune News Service | Getty Images

“While generating taxes from the legal side is a crucial component of the current legal model, we also have to balance that with sensible regulations and realistic tax structures,” said Lindsay Robinson, executive director of the California Cannabis Industry Association.
In 2021, California generated more than $1.2 billion in revenue from marijuana taxes, according to the Motley Fool. Sixty percent of this revenue goes to anti-drug programs targeting kids, 20% to environmental programs and 20% to public safety.
Robinson fears that with California’s current tax structure, legal businesses will be “taxed out of existence.”
In New York, legal marijuana is set to include a retail tax of 13% and a tax based on potency levels of tetrahydrocannabinol, or THC, marijuana’s psychoactive component.  
Klimek said that if New York wants to establish the lucrative, equitable legal market it intended, this tax structure may need reworking so that sticker prices at stores don’t turn away customers.  
He also said the state should take the step of integrating illicit operators into its new legal system, something New York’s Office of Cannabis Management agrees with.
“We recognize that those who have sold in the past more than likely have great entrepreneurial skills that can be utilized in our market,” said Knowles, OCM’s press officer. “We have always advocated that those who had to sell illicitly in the past have an opportunity to do so in the future.”

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State of Freight

More than half of logistics managers surveyed by CNBC do not expect the supply chain to return to normal until 2024 or after.
The dour outlook comes after almost three years of global supply chain problems.
Bloated inventories have kept warehouses packed, and respondents said they saw a 400% increase in warehouse prices as space decreases.

Bloomberg | Bloomberg | Getty Images

More than half of logistics managers at major companies and trade groups say they do not expect the supply chain to return to normal until 2024 or after, according to a new CNBC survey.
Sixty-one percent of respondents said their current supply chain is not operating normally, compared with 32% that said it is functioning normally. When questioned when they see a return to normalcy, 22% were unsure, 19% said 2023, and 30% said 2024.

Another 29% said in or after 2025, or never.
The dour outlook comes after almost three years of global supply chain problems, which began with the shutdown of Wuhan, China, where the Covid outbreak began. Survey respondents said they are still placing orders six months in advance to ensure their arrival.
The survey questioned 341 logistic managers the week of Dec. 12-19 at companies that are members of the National Retail Federation, the American Apparel and Footwear Association, the Council Of Supply Chain Management Professionals, the Pacific Coast Council, the Agriculture Transportation Coalition and the Coalition Of New England Companies For Trade participated in first supply chain survey by CNBC.

Arrows pointing outwards

Data sharing

When asked if they believed the Biden administration understood the challenges the supply chain was facing, 59% of respondents said it did not.
Jon Gold, vice president of supply chain and customs policy of the NRF, said the administration has taken steps to address the supply chain challenges.

Earlier this year, for example, the administration rolled out a pilot supply chain data sharing program called Freight Logistics Optimization Works, or FLOW. The Department of Transportation told CNBC there are currently 46 participants in the program.
“The administration needs to remain focused and continue to convene the right supply chain stakeholders to discuss ways to improve supply chain operations and expand data sharing to create a truly 21st century supply chain,” Gold said.
Eduardo Acosta, president of the Pacific Coast Council of Customs Brokers and Freight Forwarders Association, also weighed in on the need for more reform.
“The carriers have arbitrarily imposed such charges on customs brokers, even though we may not have had any role in booking or managing the transportation,” he said. “The survey provides data supporting the imperative for the Federal Maritime Commission to advance its proposed rule to end this unreasonable carrier practice.”

Arrows pointing outwards

Fifty-one percent of logistics managers surveyed said they did not believe a national supply chain data base would be created, while 22% said they did and 27% said they were unsure.
Both logistics managers and government officials have said data sharing would expedite the movement of freight, helping reduce costs and creating savings that could be passed onto the consumer.
“Hard data is the backbone of effective supply chain management, especially amidst the uncertainty shown in this survey,” Karen Kenney chair of CONECT. “Intelligence about real time cargo flows is essential. The survey highlights the need for the industry to rally around better data sharing solutions.”   
Nate Herman, AAFA’s senior vice president, of policy told CNBC the problems that created the supply chain crisis are far from over.
“Now is the time to double down on bringing all stakeholders together to create and implement real solutions to structural problems so that we don’t end up skipping from crisis to crisis,” he said.

Clearing warehouses

Among the biggest challenges cited by logistics managers noted in the survey were the lack of availability of raw materials, port congestion, a lack of skilled workers and dwindling warehouse space because of soaring inventories. Also cited were terminal rules on picking up and dropping off containers and canceled sailings.
Bloated inventories have kept warehouses packed, and respondents said they saw a 400% increase in warehouse prices as space decreases. That is benefitting consumers, with who are picking up heavily discounted items as retailers try to move out product out of the warehouses.
Scott Sureddin, CEO of DHL Supply Chain, said freight volumes were flat after Cyber Week but are now up 10% from a year ago as retailers slash prices to clear inventory.
“Customers are shopping discounts and we are seeing that in the items we are moving. It’s the higher value products like tennis shoes over a lower cost t-shirt, he said. “I have never seen inventory levels like this and after the first of the year, retailers can’t continue to sit on this inventory so the discounts they’ve been pushing will have to continue.”

Inflationary, labor pressures

Energy prices and labor are two inflationary pressures respondents said are still driving up logistic costs. Russia’s war on Ukraine followed by tariffs imposed during the Trump administration were the top geo-political events impacting the supply chain, followed by Covid.
On the labor front, respondents said they were worried about the mental health of their workforce as well as the shortage of skilled workers, which is adding to the stress. Survey results cited these as problems: employee burn out (65%), shortage of employees with the right skills (61%) and hiring to address the skills gap (75%).
“International logistics is still a business driven by people,” said Kenney of CONECT. “The survey highlights all sorts of challenges in the supply chain, but none of those will get solved without the right talent and expertise.” More

Airlines canceled more than 5,000 flights from Wednesday through Friday, days before Christmas.
High winds, bitter cold and snow were slowing airline operations this week.
Airlines are expecting a surge in travelers over the year-end holidays.

Workers deice an Alaska Airlines plane during a snow storm at Seattle-Tacoma International Airport (SEA) in Seattle, Washington, US, on Tuesday, Dec. 20, 2022.
David Ryder | Bloomberg | Getty Images

Airlines canceled hundreds of flights this week as winter storms, bitter cold and high winds snarled U.S. travel ahead of Christmas weekend.
Carriers scrubbed more than 5,000 U.S. flights from Wednesday through Friday, according to tracking site FlightAware. That period includes what airlines expected to be the busiest travel times before Christmas Day. More than 16,000 U.S. flights were delayed.

Chicago’s two main airports — O’Hare and Midway — and Denver International Airport had the biggest share of canceled flights on Thursday. New York’s LaGuardia Airport, Detroit and Chicago Midway were set to have the most disruptions on Friday.
Airlines warned that the snow, ice, high winds and cold temperatures could affect travel from Seattle to Boston to North Carolina.
Wednesday’s cancellations accounted for about 2% of U.S. airlines’ schedule, while about 30% of flights were delayed by an average of 47 minutes, FlightAware data showed. Disruptions worsened throughout Thursday.

A jet taxis in snow at O’Hare International Airport on December 22, 2022 in Chicago, Illinois.
Scott Olson | Getty Images

American, Southwest, United, Delta, Spirit, JetBlue, Alaska and other airlines issued weather waivers for dozens of destinations around the country, allowing travelers to change their departures without paying a change fee or difference in fare.
Airlines routinely will cancel flights ahead of bad weather so travelers, crews and planes aren’t stranded at airports at the last minute, a situation that can cause disruptions to snowball.

The weather could hurt what airlines expected to be busy travel days to cap a rocky year. United said it expects year-end holidays to be busier than Thanksgiving with 440,000 passengers a day on average. The carrier projected Jan. 2 will be the busiest day since the Covid pandemic started.

Travelers arrive for their flights at United Airlines Terminal 1 ahead of the Christmas Holiday at O’Hare International Airport on December 22, 2022, in Chicago.
Kamil Krzaczynski | AFP | Getty Images

Disruptions over the spring and summer from bad weather and labor shortages sparked an outcry from customers and politicians, and prompted airlines to trim their schedules.
Late last year and in early 2022, the omicron wave of Covid sidelined crews and led to hundreds of flight cancellations.
American Airlines, for its part, has been offering extra pay for crews to work on peak holidays to shore up staffing.
“It’s all hands on deck to ensure our customers are cared for during the holiday travel season, including when severe weather hits,” American said in a statement. “Critical to our preparations was sizing the airline for the resources we have available and operating conditions we face, as well as being able to react quickly to get our customers on their way once the weather clears.”

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It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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PagSeguro Digital Ltd: “We have to remember it’s from Brazil, so therefore it’s politically unstable. I hate to just be so broad-sweeping as that. … These are political issues.”

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Teladoc Health Inc: “I’ve used the product, I like it very much, but it is not a good situation.”

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GlobalFoundries Inc: “We heard Micron today that the industry is a little softer. … Right now, the complex is for sale, and I never buck when an entire sector is for sale.”

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ProPetro Holding Corp: “We like the oils that pay big yields because they have variable dividends, and I’m going to suggest that you buy Pioneer.”

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Kirby Corp: “It’s a great idea, but you can buy that stock more cheaply if you just wait.”
Disclaimer: Cramer’s Charitable Trust owns shares of Pioneer Natural Resources.

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer outlined three reasons why markets lost a short-lived rally on Thursday amid Wall Street concerns that the Fed’s interest rate hikes could tip the economy into a recession.
For investors fearing that time is running out for a Santa Claus rally, Cramer said charts suggest a market run could still be in the works.

CNBC’s Jim Cramer outlined three reasons that markets lost a short-lived rally on Thursday.
If the economy were running colder, if the stock market was lower, and if interest rates were higher before sliding, things would be different, Cramer said. “Today we didn’t see that, though. We had the worst of three worlds.”

Here are the three factors:

Hot economic data: Initial weekly jobless claims for the week ending Dec. 17 rose by 2,000 to 216,000, according to the Labor Department. That’s less than the Dow Jones consensus estimate of 220,000.
Weak corporate earnings: CarMax shares fell about 3.7% after the company reported weaker-than-expected profit and revenue in its latest quarter. Micron Technology shares slipped 3.4% after the company reported a wider-than-expected quarterly loss and miss on revenue after the close on Wednesday.
Bearish comments about the market: David Tepper, founder of Appaloosa Management, told CNBC on Thursday that he’s leaning short on equities because it’s unusual for global central banks, including the Federal Reserve, the European Central Bank and Bank of England, to tighten at the same time.

Stocks fell on Thursday as Wall Street continues to worry that the Fed’s interest rate hikes could tip the economy into a recession. 
Investors also fear that time is running out for a Santa Claus rally, a phenomenon in which stocks tend to rise near the end of a year into the next year. Cramer reminded investors that charts suggest a market run could be in the works for after Thursday’s trading session.
“While we could still get that seasonal bounce, obviously the market’s gotten tougher to game,” he said.

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AMC Entertainment’s stock fell swiftly on Thursday after the company announced a new $110 million capital raise.
The company said the move would reduce its debt load.
It also proposed a reverse stock split, which will require shareholder approval.

AMC Movie theatre
Scott Mlyn | CNBC

AMC Entertainment’s stock fell swiftly Thursday after the company announced a new $110 million capital raise and a proposed reverse stock split that will require shareholder approval.
The shares were halted briefly after the opening bell as AMC hit a new 52-week low. The stock recovered from double-digit losses earlier in the day to finish down over 7% at $4.91 a share. AMC is down nearly 82% this year.

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an hour ago

The company said it plans to raise the new equity through a sale of its APE units – a form of preferred shares referring to the “Apes” moniker adopted by meme stock investors – to Antara Capital LP at a weighted average price of 66 cents a share. On Wednesday, the APE closing price was 68.5 cents. This reduces its debt load by $100 million, the company said.

“Clearly, the existence of APEs has been achieving exactly their intended purposes. They have let AMC raise much welcomed cash, reduce debt and in so doing deleverage our balance sheet and allow us to explore possible [mergers and acquisition] activity,” CEO Adam Aron said in a news release Thursday.
In addition, AMC is proposing a reverse stock split of AMC common shares at a 1-to-10 ratio. The company is requesting a special shareholder meeting to approve the reverse stock split, and convert APE units into AMC common shares.
The world’s largest movie theater chain has been working to lighten its hefty debt load, which grew during the early days of the Covid pandemic when theaters were closed, and also dealing with stock dilution and a film release schedule short on blockbusters.

AMC shares slide

In November, the company reported another quarterly loss despite notching higher revenue compared to a year earlier due to higher operational costs. Despite having a significant amount of cash on its balance sheet, AMC has been spending more than it makes each quarter on operations like concession and film exhibition costs, as well as rent.

During the third quarter, AMC said it burned through $179 million in cash.
Still, the company has said it’s focused on theater investments, such as upgrading movie screens and increasing the number of special effects screens like Imax and Dolby Cinema, across its footprint.
The capital raise and proposed reverse stock split come a day after AMC said it was no longer in talks to buy theaters from Regal parent company Cineworld, which filed for bankruptcy earlier this year. In a securities filing, AMC said discussions with Cineworld lenders regarding assets in the U.S. and Europe had ended.
AMC itself had been on the brink of bankruptcy in 2021, but was able to avert it after millions of retail investors turned its shares into a meme stock. The company has since devised several plans to raise more capital to reduce its debt and invest in acquisitions and its theaters.
Read the full release from AMC here.

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The National Football League said its “Sunday Ticket” package of out-of-market games would land on Google’s YouTube.
The deal is valued at roughly $2 billion annually over the course of seven years. DirecTV had been paying $1.5 billion a year for the rights, losing about $500 million annually.
It isn’t clear yet what “Sunday Ticket” will cost consumers, who will be able to subscribe without having a YouTube TV subscription.

The National Football League announced Thursday its “Sunday Ticket” subscription package would go to Google’s YouTube TV starting next season, marking the league’s second media rights deal with a streaming service.
YouTube will pay roughly $2 billion a year for the residential rights of the “Sunday Ticket” package, according to people familiar with the matter. The deal runs for seven years.

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The agreement will elevate YouTube’s profile in the competitive streaming space. At the start of the 2023-24 season, “Sunday Ticket” will be available two ways: as an add-on package on YouTube TV and as a stand-alone a la carte option on YouTube Primetime Channels, which allows you to subscribe to individual streaming services and channels as well as watch movies.

AJ Dillon #28 of the Green Bay Packers avoids a tackle by Jalen Ramsey #5 of the Los Angeles Rams during the first half at Lambeau Field on December 19, 2022 in Green Bay, Wisconsin.
Patrick Mcdermott | Getty Images

In the latter option, consumers will be able to subscribe only to “Sunday Ticket” without having a YouTube TV subscription. Pricing hasn’t been determined for either option.
“For a number of years we have been focused on increased digital distribution of our games and this partnership is yet another example of us looking towards the future and building the next generation of NFL fans,” NFL Commissioner Roger Goodell said in Thursday’s announcement.
DirecTV has had the rights to “Sunday Ticket” since its inception in 1994, paying $1.5 billion annually for them since the last renewal in 2014. DirecTV’s currently “Sunday Ticket” offering, which requires you to subscribe to the service, has a $79.99 a month base option, and a package with extra features for $149.99 a month. The satellite TV provider now has approximately 13.5 million customers, down significantly from the earlier days of the package’s offering due to cord cutting, and had been losing $500 million annually on the package, one of the people said.
DirecTV didn’t place a bid to keep its contract going. Still, it has been open to offering the games for commercial establishments, such as bars and restaurants, similar to its agreement with Amazon for “Thursday Night Football,” according to people familiar with the matter.

The deal with YouTube TV does not include commercial rights, which could boost the value of the package, and the NFL is still sorting that out, according to one of the people.
The NFL has been discussing the commercial rights to the package with YouTube and other potential commercial partners, Dhruv Prasad, the NFL’s senior vice president of media strategy and strategic investments said on Thursday.
“With YouTube, we thought there’s a reason to think about the two end markets differently and find the best partner and best execution for residential on one hand and commercial on the other,” Prasad said.

NFL Media not included

The deal with YouTube TV does not include a stake in NFL Media, which includes the linear cable channels NFL Network and RedZone, as well as NFL.com. The league had been shopping the properties alongside the “Sunday Ticket” package, but was unable to secure a bid that included NFL Media, as CNBC previously reported.
Prasad said Thursday the NFL is still evaluating potential partners for NFL Media, “but there’s no specific initiative right now.”
A U.S.-only product, “Sunday Ticket” is the only way fans can watch live NFL Sunday afternoon games outside of their local markets on broadcast stations CBS and Fox.
It’s the last NFL package to land a media rights renewal. Last year, Paramount’s CBS, Fox and Comcast’s NBC agreed to pay more than $2 billion annually for 11-year packages, while Disney is paying about $2.7 billion per year for “Monday Night Football,” CNBC previously reported.
The deal comes as the league has been pushing to have its games on more streaming outlets. Goodell has said the league was pushing for “Sunday Ticket” to end up on a streaming service. “I think that’s best for consumers at this stage,” Goodell previously told CNBC.
Amazon secured the rights to “Thursday Night Football,” making it the first streaming-only platform to air NFL games, paying about $1 billion per year. Meanwhile, traditional broadcast partners like NBC and CBS simulcast games on their streaming services.
The league had been in negotiations for some time to find a new owner for “Sunday Ticket.” Apple, Amazon, and Disney’s ESPN were among interested bidders for the package at one point or another, CNBC previously reported.

YouTube vs. Apple and Amazon

YouTube TV is an internet bundle of broadcast and cable networks that mirrors a traditional linear pay TV operator. Its base plan costs $64.99 a month. In July, Google announced YouTube TV surpassed 5 million customers, including trial subscriptions.
YouTube Primetime Channels, which will be the a la carte option for “Sunday Ticket,” is a distribution platform similar to subscribing to networks and streaming services through Amazon’s Prime Channels.
The pricing for Sunday Ticket will ultimately be set by YouTube, which will also determine various potential packages to offer customers, Prasad said Thursday. That leaves the door open for options like individual team subscriptions. “We hope it continues to be a very accessible price and great opportunity for our fans,” Prasad said.
To compare, Apple recently signed a 10-year deal for the rights to air Major League Soccer games. The tech giant recently announced the “MLS Season Pass” would launch in February, and would be available to fans on the Apple TV app for $14.99 a month per season. For subscribers of its streaming service, Apple TV+, who already pay $4.99 a month, they can sign up for $12.99 a month.
In recent months, YouTube TV emerged as a strong contender for the rights, given it could provide a lot of what the league was hoping to achieve with a new “Sunday Ticket” partner – a technology platform with a large balance sheet and global reach, and the ability to support bundled legacy TV.
For a time, it seemed Apple was close to attaining the rights. The company has been expanding its sports footprint for Apple TV+. Besides the 10-year deal with MLS that starts in 2023, Apple also began airing Friday night Major League Baseball games.
However, discussions broke down due to existing restrictions around the “Sunday Ticket” rights, and Apple had wanted more flexibility with how to distribute the package, CNBC previously reported.
Amazon had also been considered another top contender, considering it already airs “Thursday Night Football” games and is a streaming-only platform.

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