Amazon in Good Field Position After NFL Deal

Amazon won the auction for live-streaming rights to this season’s Thursday Night Football franchise with a bid of $50 million dollars for a package of 10 games. That’s 5 times what Twitter paid last year for essentially the same deal: Amazon will share the games with NBC and CBS and will stream the networks’ feeds, including their ads. Amazon will also be able to sell a handful of ads per game itself.

The games will be available for free to Amazon Prime members.

Although the 5X increase in price is impressive — and was probably too rich for Twitter — $50 million is still pretty small beans, both for the league — whose deals with the broadcast networks run into the billions — and for Amazon, which has $20 billion on its balance sheet. For both, it’s largely an add-on business at this point.

For the NFL, streaming is still largely an experiment aimed at finding a way to reach cord-cutters and out-of-home viewers, and to test the viewership waters outside the U.S., not to supplant its traditional broadcast deals. For Amazon, the NFL deal is a way to enhance the value of a Prime subscription and to attract to new subscribers at a relatively modest price. Read More »

Broadcasters’ Goal-Line Stand

CBS Corp. chairman and CEO Les Moonves has long been one of broadcast television’s most indefatigable boosters, so it was no great surprise this week to hear him tell an investor conference that he expects the traditional broadcast networks to remain the mainstay of the National Football League’s TV rights package when the current contract is up in 2022, despite the near-certain interest from Facebook, Google, and other aspiring digital TV outlets.

“Look, the tech giants all want to be involved in the NFL. It’s the best product in television,” Moonves told the Deutsche Bank 2017 Media and Telecom Conference. “There’s going to be a lot of activity. As we head toward that large deal, I think these companies are going to be part of it, [but] I think the NFL still believes in the sanctity of broadcasting.”

Moonves was also likely correct in his assessment. Despite the accelerating pace of cord-cutting, and the ongoing unbundling and rebundling of the pay-TV ecosystem, and declining overall viewership the broadcast networks remain atop the ratings heap. While all of those trends are likely to accelerate further between now and 2017, the broadcast networks are likely to remain the NFL’s most efficient path to the largest audience, however those channels end up being delivered. Read More »

NBC, Rio, And the Long-Term Value of Televised Sports

NBC’s Olympic efforts in Rio are falling short of its previous best. Through the first 10 days of the games, the broadcaster’s prime time coverage has averaged 27.8 million viewers, according to Nielsen. That’s more than enough to trounce CBS, ABC, and Fox, but it’s down 17 percent from NBC’s coverage of the 2012 games in London, despite a more favorable time zone that allowed for high-profile events where American’s typically excel, like swimming, to be shown live in prime time.

usain_bolt_smileThe fall off among viewers 18-34 has been even steeper, down 25 percent from London.

NBC execs are quick to point out that the ratings for its prime time coverage on its broadcast channel don’t tell the whole story. NBC Universal is showcasing the games live across its entire suite of cable networks throughout the day, some of which have drawn strong ratings in their own right. The final of the men’s golf competition, shown live on NBCU’s Golf Channel on Sunday, delivered the second highest ratings for any 90 minutes of televised golf this year after the final round of the Masters, despite the absence of many high-profile players. Between noon ET when it started, and 3:10 p.m. when it ended, the competition earned the highest household rating (1.02, with 1.6 million viewers) since Tiger Woods and Phil Mickelson went head to head at Pebble Beach in 2012. Go figure.

NBC also points to record-breaking digital viewership of this year’s games. Through Aug. 14th, NBC had delivered 1.86 billion live-streaming minutes, besting the total from the last three Olympics combined by more than 25 percent. NBC is live-streaming all the events in Rio as well as simulcasting it’s prime time coverage. Read More »

How Twitter Beat Out Rivals For NFL Deal

Twitter this week landed streaming rights to a 10-game package of Thursday Night Football games next season for a surprisingly modest $10 million, edging out rival bids from Verizon, Amazon and Yahoo, at least one of which reportedly came in 50 percent higher than Twitter’s offer. Another rival, Facebook, reportedly dropped out of the bidding last week over objections to the advertising framework imposed on the deal by the NFL.

Twitter, in fact, will get minimal advertising rights as part of the deal. As a technical matter, it will be rebroadcasting the CBS and NBC feeds of the nfl_gamegames, which the networks will also be streaming over their own, authenticated TV Everywhere platforms as part of their $450 million deal to broadcast the games, and the networks will be handling the bulk of the ad sales for both broadcast and digital channels. Twitter will get a little bit of inventory around the margins to sell, plus some pre-game, player-created spots on Periscope. The deal is basically a $10 million brand-building exercise for micro-blogging and live streaming platform.

The games, in fact, will be available for free, without authentication, both on Twitter’s own platform and across its entire, syndicated global footprint.

That last point was obviously critical for the NFL, which has been working feverishly to expand its audience outside the U.S. and sees streaming as a way to reach potential fans in territories where broadcast rights would be a tough sell. Read More »

The Bills, Jaguars And Peak-NFL

Given how little good news Yahoo has had to share with investors lately it’s no surprise that the company is trumpeting the results of Sunday’s first-ever globally live-streamed regular season NFL game, between the Buffalo Bills and Jacksonville Jaguars, which attracted 15.2 million unique viewers and 33.6 million total views. Those numbers make it one of the biggest live-streamed events to date, and compare favorably with the TV audience for  a typically Thursday night or Monday night regular season game, according to the NFL.

“We’re thrilled with the results of our initial step distributing an NFL game to a worldwide audience and with the work of our partner, Yahoo,” NFL senior VP of media strategy, business development and sales,Hans Schroder said in a statement. “We are incredibly excited by the fact that jaguars-billswe took a game that would have been viewed by a relatively limited television audience in the United States and by distributing it digitally were able to attract a global audience of over 15 million viewers.”

Yet as others have pointed out, the reported numbers don’t tell the whole story. Yahoo had to resort to some trick plays to score some of those points, like putting a muted auto-play video of the game on the home pages of several of its properties, which means your Aunt Minnie, who has never watched an NFL game in her life but uses Yahoo as her personal home page, is somewhere in that 15 million. The comparison with broadcast TV viewership is also overstated. As Brian Stetler of CNN pointed out, the 460 million total minutes of football Yahoo claims to have streamed, over the course of a 195-minute game, implies an average of just 2.36 million concurrent viewers, the streaming metric most comparable to TV ratings. Read More »