'NFL Now' Streaming Video Service Launching Ahead of 2014 NFL Season

[simon48]

True, but, it would be way more than $99 year if the NFL wants to make the $700M a season it gets from DTV plus the $210M it gets from Verizon. Right now DTV charges $400 for Live view TV + online streaming of all Sunday games and loses money at that price. So guessing if the NFL opened it up to everyone, not just DTV customers, at best you cut the price 25% to remain profitable. BUT I'm also guessing NFL is going to want north of $1B for the next contract starting in 2016, so $400 is probably what the NFL would have to charge if it wanted to go it alone.

The NFL would still get money from the TV networks and cable companies, just less as it wouldn't be as exclusive of a deal anymore. There's no way the TV networks and cable companies wouldn't pay to keep showing NFL games (and the NFL still needs their physical coverage of the games).

 

[Chupa Chupa]

The NFL would still get money from the TV networks and cable companies, just less as it wouldn't be as exclusive of a deal anymore. There's no way the TV networks and cable companies wouldn't pay to keep showing NFL games (and the NFL still needs their physical coverage of the games).

I highlighted why the NFL wouldn't do it. They aren't gong to accept less money. The NFL is the most popular sports league in the country. They are ruthless when it comes to contracts. They are not giving up a dime of revenue.

 

[simon48]

I highlighted why the NFL wouldn't do it. They aren't gong to accept less money. The NFL is the most popular sports league in the country. They are ruthless when it comes to contracts. They are not giving up a dime of revenue.

I get your point, but (no offense to you) that's the same close minded view the NFL has. I'm also not saying the NFL is going to do it, I'm saying it would be a smart business decision.

The web and TV will become synonymous someday, doing this will put the NFL ahead of the curve. In the short term they would be shrinking a old and (slowly) dying revenue stream and opening a new revenue stream with tremendous potential. If they don't, someday the networks will do it (more) when they have the guts to annoy the cable companies. These things will happen someday, it's just a matter of who and when.

 

[LethalWolfe]

In the short term they would be shrinking a old and (slowly) dying revenue stream and opening a new revenue stream with tremendous potential.

And what the NFL is waiting for is for the revenue stream with tremendous potential to turn into the revenue stream with tremendous dollars. They aren't going to take a potential revenue cut any sooner than they have to just like you or I wouldn't jump at the chance to take a pay cut sooner than necessary.

The NHL and MLB have had streaming options for years but I don't think anyone has ever said, "Ya know, I don't really like hockey, and I've been a fan of the Bears since before I could walk, but I'm going to stop watching the NFL and start watching hockey because the NHL has a streaming service." The position major league sports teams have as content creators is very unique in that they each pretty much have a monopoly on their sport in the US. The NFL, NHL, NBA, MLB, MLS, etc., don't compete in the same way that FOX competes with NBC, Cox competes with DirecTV or Paramount competes with Warner Brothers. There's no one that can 'beat the NFL to the punch' if the NFL doesn't act fast enough.

The NFL Sunday ticket deal expires next year and analysts think the NFL is going to up the price tag from $1 billion a season to $1.4 billion a season (with it going up slightly each). DirecTV is balking at the high price but if they don't buy it someone else will (I've heard rumors Google was interested). I honestly would be surprised if DirecTV let it slip away because it is a major advantage they have over the competition.

 

[simon48]

And what the NFL is waiting for is for the revenue stream with tremendous potential to turn into the revenue stream with tremendous dollars. They aren't going to take a potential revenue cut any sooner than they have to just like you or I wouldn't jump at the chance to take a pay cut sooner than necessary.

The NHL and MLB have had streaming options for years but I don't think anyone has ever said, "Ya know, I don't really like hockey, and I've been a fan of the Bears since before I could walk, but I'm going to stop watching the NFL and start watching hockey because the NHL has a streaming service." The position major league sports teams have as content creators is very unique in that they each pretty much have a monopoly on their sport in the US. The NFL, NHL, NBA, MLB, MLS, etc., don't compete in the same way that FOX competes with NBC, Cox competes with DirecTV or Paramount competes with Warner Brothers. There's no one that can 'beat the NFL to the punch' if the NFL doesn't act fast enough.

The NFL Sunday ticket deal expires next year and analysts think the NFL is going to up the price tag from $1 billion a season to $1.4 billion a season (with it going up slightly each). DirecTV is balking at the high price but if they don't buy it someone else will (I've heard rumors Google was interested). I honestly would be surprised if DirecTV let it slip away because it is a major advantage they have over the competition.

The Google rumor is very interesting because Google Fiber isn't big enough for them to get a return, so they have to do something else or as well as Google Fiber. It opens up some interesting possibilities, but I'm doubtful Google will actually do the deal.

 

[Chupa Chupa]

I get your point, but (no offense to you) that's the same close minded view the NFL has. I'm also not saying the NFL is going to do it, I'm saying it would be a smart business decision.

I didn't say it was MY view, I said it's not something the NFL would do b/c it would result in a net loss of income. NFL is a business. How is getting less money than the market will bear "a smart business decision"?

 

[PsyOpWarlord]

Too bad Apple wouldn't by the rights (they easily have the cash). They could set it up so anyone with an Apple device could stream it for free or a very small fee. That would drive up the sales for Apple hardware, especially AppleTV devices.

 

[simon48]

I didn't say it was MY view, I said it's not something the NFL would do b/c it would result in a net loss of income. NFL is a business. How is getting less money than the market will bear "a smart business decision"?

Read the paragraph below the one you quoted, it explains my reasoning.

 

[Chupa Chupa]

Read the paragraph below the one you quoted, it explains my reasoning.

I understand your reasoning, but we are talking about Roger Goodell & Co's reasoning here. They don't see it that way.

 

[simon48]

I understand your reasoning, but we are talking about Roger Goodell & Co's reasoning here. They don't see it that way.

I agree, like I said earlier, "'I'm also not saying the NFL is going to do it, I'm saying it would be a smart business decision."