Commentary

NFL 'Reach' - Having Broadcast Networks Is PR Key

For the NFL and its media partners, we see where the latter has some obvious advantages -- from a PR and marketing perspective -- when it comes to negotiating a new contract.

This translates to the regular and fanatical NFL fan. Heavy criticism has come against the league when it comes to accessibility and consumer cost for the league.

To watch every single NFL regular season and post-season game on a TV from home will cost you between $800 and $1,700 for the full season, according to Yahoo Sports -- including pay TV bundle access and streaming app costs. Add in another $250 to $300 to watch “NFL Sunday Ticket” and YouTube TV.

The NFL has responded to these stories with its data that 87% of all NFL games are on free, over-the-air TV -- airing on CBS, Fox and NBC.

Here is the financial and business point of view: The league continues to capitalize on its dominant viewership on all platforms -- especially over-the-air TV networks, as well as streaming platforms where modern TV consumers also hang out.

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This is where the likes of CBS, Fox and NBC have some advantage. Speaking with CNBC, one CBS executive offered more insight: “The NFL values a few things more than most. One of them is reach. CBS -- 17 of the last 18 years -- [was the] No. 1 broadcast network,” says David Berson, president of CBS Sports.

“That means an awful lot to them. A growing streaming service like we have with Paramount+ means an awful lot to them."

"Marquee production -- high-end production -- means an awful lot to them. We check every box. They know it, they acknowledge it, and it’s part of the partnership we have.”

Lachlan Murdoch, CEO of Fox Corp., is not rushing into early negotiation talks with the NFL during its option period.

For its current media contacts, NFL instituted skyrocketing rights fees for companies now totaling $110 billion to $113 billion for ten years across all partners extending through 2033.

Market analysts suggest the NFL is seeking -- hold your breath -- as much as doubling those rights fees again, at least from a starting negotiation position. Some believe it might just rise a still significant 50% hike for the next round.

This is all to say that the maturity of the new modern linear TV/streaming marketing has legacy and digital-first media companies believing that there they have advantages, including that fewer big media companies have the wherewithal to keep increasing money going to the NFL.

The NFL may not be available to drive up the score.

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