NFL online video future
ADOTAS — It looks like DirecTV wants want CBS has.
The NFL and DirecTV agreed to an extension for its Sunday football package worth $4 billion deal that will include, by 2012, live-streaming games online. DirecTV previously paid the NFL $700 million for the rights. It’s clear that premium sport content has become a safe, albeit expensive, place to park money with the knowledge that advertisers will soon arrive.
With the success of online video advertising, look at March Madness, media companies feel it’s a growing opportunity.
DirecTV needs to turn this deal into paying subscribers, luring customers away from cable, but what will the online video deal entail. Some live streaming has subscribers as well, is that the way the company will go? Attract the small, yet dedicated fan? Or will it want scale as CBS is doing with March Madness?
In addition, the NFL will offer fans a new “Red Zone Channel” that shows crucial live action cut-ins of all Sunday afternoon games starting at 1 p.m. ET and continuing through the conclusion of the 4 p.m. ET games. The “Red Zone Channel” will be available to cable, telco and satellite systems, wireless devices, and the Internet.
Reader Comments.
The NFL has a loyal fan base, and a rock solid reputation with consumers. Nearly everything they touch turns to gold. Score a big one for DirecTV. Online video is the hottest content delivery archetype right now, and the easiest way to monetize it is through subscrptions. Smart phones are everywhere and the data plans are getting cheaper. I don’t know a single fan that woldn’t download a live game app to their mobile.
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