NFL Lining Up Bidding War Between Tech And Media Giants For Broadcasting Rights


It’s looking like the 2016 season could bring major changes to the broadcasting of NFL games.

The SportsBusiness Daily  first reported that the NFL has reached out to the networks in which they have existing relationships with such as CBS, ESPN, FOX, NBC and Turner and informed them that they are accepting bids for a Thursday Night Football digital package. All of these existing broadcasters have digital platforms for which they air NFL games. But the added wrinkle this time is that the league has also reached out to Google, Yahoo, Apple and Amazon to gauge their interest in a Thursday night package streamed over the web. A smart move on the part of the NFL as they are attempting to set up a potential bidding war between literally the largest tech and media companies on the planet.

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While Google was a finalist for the NFL content package earlier this year with the existing provider in DirecTV, a bid never materialized and DirecTV extended their rights for another 8 years to the tune of $1.5 billion per year. Even though Google didn’t ultimately land the contract to distribute NFL games, it was a warning shot of sorts that the tech giants are getting into the game and will be a factor going forward when broadcast rights are up for sale.

To this point, the NFL has remained silent as the most information from a league source came from Brian Rolapp, NFL’s EVP of Media on a recent podcast with Re/Code’s Peter Kafka:

“I think that when we look at Thursday Night football we are talking to numerous people both traditional media companies and some of the Internet guys and I think there will be a heavy digital competence of that,” Rolapp told Kafka. “It is just a question of what the model will be and how we will do it. Literally as we sit here today recording this podcast we are thinking through it and talking to people. We have not made any decisions.”

There is certainly growing precedent for an internet-based broadcast as this digital inclination from the league comes on the heels of the NFL and Yahoo teaming up to stream the Bills-Jaguars game from London on Yahoo’s digital platforms back in October. Yahoo reportedly paid $17 million for the rights and it was watched by over 15 million people from all over the world.

While the NFL seems like it’s ready to move forward with airing games over the internet, the bigger question has been if the internet is ready for such events to be consistently streamed without issue. Rolapp continued to Re/Code’s Kafka:

“One of the reasons we did that is that it’s a question of the Internet is ready for full scale distribution of NFL football,” Rolapp told Kafka. “One strength of the NFL is our games have been widely available … that reach has really served our sport well. Now reach is more complicated. Our question is can the Internet reach as many fans as it could on television? I think the jury is out on that a little bit.”

With the NFL’s television rights locked up through 2021, a wholesale selection of games available to watch via the internet isn’t likely on the horizon. But as MLB, NBA and the NHL continue to push the digital consumption of their games to a worldwide audience, the NFL will need to continue with a solid digital model to continue to compete with demands of current fans who are already digitally focused and incoming generations who don’t know anything else besides online content.