Google CEO in Talks With NFL Commissioner for Sunday Ticket Deal

Discussion in 'iOS Blog Discussion' started by MacRumors, Aug 21, 2013.

  1. macrumors bot

    MacRumors

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    [​IMG]


    Google CEO Larry Page has had informal discussions with NFL Commissioner Roger Goodell and other NFL executives that included talks about the NFL Sunday Ticket package that DirecTV currently holds the rights to, according to AllThingsD.

    The current Sunday Ticket deal with the NFL -- which sees DirecTV paying $1 billion a year -- ends after the 2014-15 season and the NFL is likely looking to lock up the rights well before its contract with DirecTV ends.

    A number of pundits have suggested that Apple, Google or Amazon could provide a huge boost to their streaming video services by buying exclusive rights to NFL Sunday Ticket -- though it's likely the price tag will cost quite a bit more than the current $1 billion per year.

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    CBS, Fox and NBC have signed new contracts that see each of them paying roughly $1 billion annually for their Sunday games, while ESPN will pay nearly $2 billion per year for its Monday Night Football broadcast rights. These new contracts were an increase of some 60 percent from their previous deals.

    There have been occasional rumors that NFL Sunday Ticket would be coming to the Apple TV, though nothing has come to fruition yet -- however, given the recent additions of HBO Go and WatchESPN, Apple is clearly looking to make deals to increase the appeal of the Apple TV box. However, it remains to be seen if Tim Cook is interested in spending more than $1 billion per year on a "hobby".

    Article Link: Google CEO in Talks With NFL Commissioner for Sunday Ticket Deal
     
  2. macrumors 65816

    lunaoso

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    #2
    I can see the NFL on the Apple TV as a HUGE selling point. Especially if Apple can offer it at a reasonable price. I still don't see why the NFL is obsessed with exclusive deals though.
     
  3. macrumors 68000

    topmounter

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    #3
    Alternate headline: NFL to use Google money to settle player head injury lawsuits.
     
  4. macrumors 6502a

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    #4
    Yeah really, **** Goodell and what he did with the Madden exclusivity.
     
  5. macrumors regular

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    #5
    take my money

    would love to see apple bid for this
     
  6. macrumors 6502

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    #6
    Buffering....,.
     
  7. macrumors Nehalem

    GoCubsGo

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    #7
    I'd love to see this happen and happen for ATV as well. DTV's pricing, if you're not a new member, is insane.
     
  8. macrumors 6502

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    #8
    I can see it now...

    Apple or Google buy the rights then market it with a $50 season ticket. The cable companies, wanting a piece of the action, block streaming from that source citing excessive network demand unless you pay the cable company an extra $10 a month. Everybody wins except for the viewer.
     
  9. Guest

    Sky Blue

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    #9
    Apple should buy the rights and make it excuse to any Apple hardware. Free with an iTunes Match subscription :D
     
  10. JAT
    macrumors 603

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    #10
    It's not like the NFL has cash issues.
     
  11. macrumors 68020

    Squilly

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    #11
    All I can say is this proves how much each one of these companies make. Can't even come close to fathoming that "subscription".
     
  12. macrumors 6502

    FirstNTenderbit

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    #12
    Now that is funny. Scary as hell:eek:, but funny nonetheless.
     
  13. macrumors 68000

    BC2009

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    The important part here is that the NFL is doing a tour of Silicon Valley companies (I'm sure Apple is in the mix). They want all the companies to know that they are taking bids so they drive up the price of the exclusive deal (for DirectTV or for anybody like Apple or Google).

    NFL is basically trying to drum up a higher price than $1B per year than they currently get from DirectTV. Keep in mind that Apple makes about $55B in operating profit and $40B in net income after taxes annually. Google makes about $13B operating profit and $11B in net income after taxes annually. Meanwhile, DirecTV makes about $5B in operating profit and $3B in net income after taxes annually.

    For Google to pay $1B per year would essentially amount to 8% of their operating profit. For Apple to do it, it would amount to 2% of their operating profit. For DirecTV it amounts to 20% of their operating profit. I'm sure the NFL is hoping for more than $1B per year or else they would not be shopping it around.
     
  14. macrumors 68040

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    I don't know why they make exclusivity deals for Sunday Ticket. Surely the NFL could get more than $1bn per year combined from Apple, Google, Amazon, DirecTV and whoever else wants to pay for the rights. Even if those 4 companies paid "only" $500m for non-exclusive rights, that's $2bn. And the last time I checked 2 was twice as much as 1.
     
  15. macrumors regular

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    #15
    Seriously, it sucks for the consumer. It would seem they could simply be resellers of the subscription and the device/service company gets a cut of the fee. Bah.
     
  16. macrumors 6502

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    #16
    Goodell wasn't commissioner when the NFL went exclusive with Madden.
     
  17. macrumors 6502a

    drummingcraig

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    #17
    Thats where the money is. You can't charge $1B+ to a client if its not "exclusive". Sure they may be able to make the same money if they licensed to multiple, competing entities but why not just shore it up in one deal?
     
  18. macrumors 68040

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    #18
    Exactly. Follow the money. But like I said, a bunch of companies could buy in for non-exclusive rights, each paying much less than $1bn and the NFL gets a lot more money.

    This could be great for the consumer because not only would we have a choice, but we would (in theory) be paying much less for Sunday Ticket. As it stands, part of the reason Sunday Ticket is so expensive is that DirecTV is the only provider and they are solely responsible for recovering their cost.
     
  19. macrumors 68020

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    #19
    This would be very appealing, especially to consumers who don't yet have ATV.

    Between the two, I much rather prefer NFL RedZone over Sunday Ticket.
     
  20. macrumors 65816

    lunaoso

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    #20
    More companies in the mix= more consumers in the mix= more ticket and nflshop purchases= more money for the NFL. Plus they could probably still charge 250-500 mill per company even without it being exclusive.
     
  21. macrumors G4

    Chupa Chupa

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    #21

    Are you joking? I pay $175 for Sunday Ticket now w/o the Internet option. If I could get it for $50/season + $10/mo surcharge I'd consider that a huge win.

    I don't see it being $50/ season though. Maybe $99 as a loss leader.
     
  22. macrumors G4

    Chupa Chupa

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    #22
    At the time the NFL made the current deal DTV was the high bidder & the NFL wanted a single provider for Sunday Ticket. Whether its changed its business model for the next round remains to be seen.
     
  23. macrumors newbie

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    Jan 31, 2013
    #23
    Apple is Stupid if they Don't Outbid on This

    This is simple. Apple always seems to get outbid. With the amount of cash reserves they have they should wrap this deal up, go nuclear. In one blow they could basically take out a huge market using a page from Amazon's book on potential. They should buy out the deal, and give the Sunday Ticket away to all ATV members and iPhone users. The halo effect would be huge and they can afford it. Cook should just look at as a supply chain issue, just like they lock up panels and memory pricing. Apple needs to stop being afraid that their cash hoard is going to disappear, it is choking them in the market of perception. They should look for the same type angle in Europe and China. Smartphone innovation that changes the market mindset has peaked. A watch ain't going to do it. They need something that people want on the platform, NFL would be huge to show people Apple isn't effing around. #AppleNFL - spread the tag guys
     
  24. macrumors 6502a

    SBlue1

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    #24
    NFL on my Apple TV? Now where was that "shut up and take my money" pic? :D
     
  25. macrumors 68000

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    #25
    The NFL is not going to give exclusive rights to anyone anymore. They want it available on as many platforms as possible. That would include cable, streaming devices, satellite, etc.

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    I have the preseason streaming package on my ipad and computer. No buffering problems. I also stream MLB and NHL and again no buffering issues. NFL needs to do what NHL does, stream in HD at 60 fps.
     

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