HomeAmerican FootballNFL’s New Deal An Expensive But Safe Investment For Broadcasters

NFL’s New Deal An Expensive But Safe Investment For Broadcasters

NFL’s New Deal An Expensive But Safe Investment For Broadcasters

The National Football League’s (NFL) new media rights deal came at a cost for broadcasters, but it was one they were willing to pay.

In an 11-year deal agreed with its media rights partners last week, the NFL will remain on the air until the end of the 2033 season.

The various contracts agreed in the deal equate to a total of $130AUD billion across the span of the contract, compared to the AUD$35 billion in the 2011 deal.

Media fees for some of the league’s biggest players have doubled since the last deal, highlighting the sheer profitability and rating success of the NFL and its stars.

The price of broadcasting the United State’s most viewed league came at an expectedly high cost.

However, despite talks of a streaming revolution, the broadcasters taking part in the deal remain relatively the same as past deals.

Legacy broadcast television channels will mostly control where games appear for the next decade, each paying AUD$115 billion to continue to cover NFL games, a 108% rise compared to the USD$43.1 billion in the last deal.

CBS, Fox, NBC and ESPN, however, will still face some competition from Amazon, who have exclusive access to the Thursday night game in this deal.

The online retailer is paying roughly AUD$1.3 billion a year for the games and will take over from Fox in 2023.

Amazon has grown its ad-supported streaming service to more than 55 million monthly active viewers from 20 million a year ago.

The sheer cost of the new deal could also potentially see traditional broadcasters selling their products individually.

General Partner at LightShed Partners, Rich Greenfield, believes the new rights could lead to the end of multichannel TV bundles.

“Mark it down – March 18, 2021 is the day the multichannel TV bundle died,” Greenfield said.

“Sure, the bundle will be around for many years to come, but the future trajectory is now clearer than ever and the proverbial ‘floor’ on multichannel video subs is far lower,” he said.

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