Wednesday, 21 August 2013 10:53

Google's Rumored To Bid For NFL Sunday Ticket Package, Extant Biz Models Beware! Featured

google buying NFL Sunday Ticket

All Things Digital ran a story today concerning Google bidding for the NFL Sunday Ticket package. CNBC hosts discussed the topic as well. James Cramer asserts that Google may charge for the NFL content if it is successfully acquired. My first thought when hearing this was... Not so fast. The AllthingsD article put it interestingly:

Here’s a fun combination to ponder: The world’s most powerful media company and America’s most popular sport. That could happen if Google buys the rights to the NFL’s Sunday Ticket package, the all-you-can-eat subscription-TV service currently owned by DirecTV.

If YouTube offers games for free and creates a premium advertising channel they can scrape the frothy ad cream off of the top. Remember the power of the NFL brand. This years Superbowl ads went for $3.8 million for 30 second spots. Granted, the NFL ticket is not the superbowl, but there's a hell of a lot more inventory to go around as well.

Google also has much more in terms of resources to bring to this pacakge. Imagine Google Glass on an NFL quarterback as he snaps the ball off to another player - giving Google unique, potentially exclusive content from an NFL player's first person perspective during a game.

By offering said content for free and monetizing it through Ads, Google has effectively cost-shifted the product in a fashion that would be a true threat to the status quo. With almost a billion Android handset activations, that's more than enough of an argument to get the establishment quaking.

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