The NFL is dumb at selling their product?
Seriously?
Respectfully, I disagree. How exactly does selling the rights for
less money to a
lower bidder result in the NFL making
more money?
If there is one thing that the NFL knows how to do, it is how to maximize profits by leaving no stone unturned, that others would not even consider.
The reason DirecTV has the Sunday Ticket is because they outbid everyone else - by an appreciable amount. And the reason DTV can outbid everyone else is because it is a loss leader for them; they lose money on the ST deal but make up for it on corresponding subscriptions for their television service. Others (e.g., Comcast, BrightHouse) are not going to get enough additional viewers with the ST to make it worthwhile to outbid DTV and pay that much for those rights.
While the Sunday Ticket being available through DirecTV is an inconvenience for many consumers, that does not in any way equate to it being a dumb business decision by the NFL. Quite the contrary: if they sold the rights to a lower bidder, then that would be a dumb business decision.
Google entering the picture changes the landscape completely because up until the only players bidding for exclusive rights have been either networks (CBS, NBC, etc.) or service providers (DirecTV, Comcast, etc.)
Some more on this news here:
Google, feeling lucky, may bid for Sunday Ticket
Google, flush with cash and mulling a way to extend its reach into television, has held meetings with the National Football League, the NFL said on Wednesday.
Although the League would not comment on specifics of the meeting, it raised the tantalizing possibility that the search behemoth could launch a bid for the rights to the NFL's Sunday Ticket package.
"Members of our office meet often with innovative leaders in Silicon Valley and around the world," the NFL said in a statement. "We are constantly looking for ways to make our game better on the field, in the stadium and for fans. We are not commenting on any specifics of the meetings."
Google reaches out to NFL over Sunday Ticket package
Google is already the most lucrative set of multicolored letters in the known universe. There's nothing like assimilating with the most financially successful professional sports league to keep that momentum.
The clock is ticking on DirecTV's deal with the NFL and their Sunday Ticket package. By the end of 2014, it will be up for grabs, and the league already has some potential suitors fluttering their eye lashes.
Roger Goodell led a contingency of suits into a meeting with Google CEO Larry Page and YouTube exec Robert Kyncl, during which the very topic of Google picking up where DirecTV may leave off was discussed.
With a price tag of a mere $1 billion, Google would most likely have to pay slightly more to secure the rights, and lose money in the process, but could use the deal to vault the TV industry into a more web-oriented direction. Which *might* in the end prove valuable for them.