YouTube closes $2 billion deal for ‘NFL Sunday Ticket’
YouTube and the National Football League are moving the game of football into a new age with a streaming deal. They revealed their recent collaboration on Thursday to bring the NFL Sunday Ticket package to YouTube’s primary streaming service. They will provide fans with more options than ever.
Tech moguls Amazon, Apple, and Google also aimed for the rights to stream the NFL games next season. But it’s YouTube who won the bidding. This groundbreaking deal between YouTube and the NFL paves the way for football fans. They can now watch nearly all Sunday matches through streaming.
NFL games on other days of the week will remain on other networks. It will still be available on ESPN, ABC, and Amazon Prime Video. It only proves that streaming is becoming more popular.
The expanded access offered by YouTube promises viewers ultimate convenience in terms of access and cost. With this new agreement, football fans will be delighted each weekend. They will have new opportunities to enjoy two days of excitement from their favorite teams.
NFL 👏 Sunday 👏 Ticket 👏 is coming to YouTube Primetime Channels and @YouTubeTV in *2023*. pic.twitter.com/c8sbA25IXw
— YouTube (@YouTube) December 22, 2022
The games will be available to users through two different methods. Customers can add the games to their current YouTube TV subscription for only $64.99. Or, they can purchase each through its YouTube Primetime Channels separately.
The NFL recently struck an incredibly lucrative deal with YouTube. It is potentially totaling $2.5 billion annually for access to Sunday Ticket’s premium service. While DirecTV may have been the previous rights holder, this new agreement promises even more revenue for the NFL.
Google has added payment specifications related to their subscribers and other performance goals. The amount of money being thrown around for the Sunday Ticket indicates how highly sought after it genuinely is.
NFL Sunday Ticket Stream
YouTube’s seven-year agreement for Sunday Ticket is set to give Google a significant head start in building up its subscriber base. While DirecTV also has multiple-year deals that will keep them competitive in the streaming market. This news opens up fascinating opportunities for increased viewership.
Free advice for @YouTube TV for Sunday Ticket — create a channel that allows 4 games in 4 boxes that take up the entire screen. Give subscribers the ability to customize the 4 games and manage the audio accordingly. Even if they do just THAT it’s a huge win for 2023.
— Bill Simmons (@BillSimmons) December 22, 2022
NFL commissioner Roger Goodell said, “For a number of years, we have been focused on increased digital distribution of our games. This partnership is another example of us looking towards the future and building the next generation of N.F.L. fans.”
This groundbreaking deal with the NFL for Sunday Ticket is a significant milestone in the ongoing revolution of the media industry. As the access to streaming services like Netflix become increasingly widespread, traditional TV networks have continued to depend on popular sports programming to keep viewers tuned in.
Football games are particularly integral, with loyal viewership that keeps fans entertained and advertising deals well-secured for the networks. This new agreement with YouTube reflects the immeasurable impact of streaming on the media industry as it moves further away from cable TV and traditional broadcasting towards more innovative digital alternatives.
The streaming industry has been rapidly expanding in recent years. It has become even more evident with the entrance of major tech giants like Apple, Google, and Amazon into this space. With their influence, negotiations for media rights have changed drastically.
NFL announced a multi-year agreement with Google granting YouTube TV and YouTube Primetime Channels the right to exclusively distribute NFL Sunday Ticket to consumers in the United States starting with the 2023 NFL season.
— Adam Schefter (@AdamSchefter) December 22, 2022
Apple now holds the rights to MLB and MLS games, while Amazon sealed a whopping $1 billion annually for its deal on N.F.L.’s Thursday night games. Youtube’s Sunday Ticket deal further solidifies the increasingly prominent presence of streamers in the broadcasting business.
NFL Sunday Ticket 2023
Last year’s 10-year contracts between the National Football League (N.F.L.) and television networks like Fox, ESPN, CBS, and NBC have shifted the sports viewing landscape, ensuring that a significant chunk of NFL games will remain exclusive to traditional television for this entire decade.
Despite the proliferation of streaming services in recent years, the league has opted to generate extra income by selling streaming rights separately rather than offering its broadcasts on exclusive digital platforms.
The Sunday Ticket package, which YouTube will offer its TV subscribers, could significantly boost the streaming service. YouTube has been looking for ways to grow its subscription model as the effects of the pandemic and market saturation continue to keep a lid on growth in its traditional advertising revenue.
The NFL has announced a multiyear deal with Google's YouTube TV for exclusive NFL Sunday Ticket rights pic.twitter.com/tRdawhaeFL
— Bleacher Report (@BleacherReport) December 22, 2022
With NFL games being some of the most popular sporting events in the country, many sports fans may now come to YouTube TV for access to their favorite teams.
That’s already a prediction as YouTube surpassed five million subscribers this past July. It became the most popular internet-based pay TV service — exceeding even Hulu + Live TV.
Despite YouTube’s enormous success and global user base, the video platform’s advertising revenue is facing a setback due to stubborn inflation and a slowing global economy. Google’s October financial report revealed that YouTube’s ad sales have contracted by almost 2 percent in the previous quarter.
YouTube NFL Package
YouTube’s growth over the years has been impressive. However, recent disappointing results have given more urgency to the company’s plans to expand in other ways. Reports suggest that YouTube had 80 million paying subscribers in November for its music and premium services. It is a massive increase from the 50 million it had just one year prior.
NFL Sunday Ticket has a new home pic.twitter.com/XzGHzNLkAc
— PFF (@PFF) December 22, 2022
After months of speculation, the deal is finally official. After John Stankey, Chief Operating Officer for AT&T, declared their interest in reevaluating DirecTV’s Sunday Ticket deal in 2019. The acquisition came to fruition with the most recent agreement. Before this package, Sunday Ticket had long been the exclusive domain of DirecTV for years, which increased its value significantly.
In July, the N.F.L.’s Commissioner Roger Goodell signaled that a streaming service would be the best choice for consumers regarding the league’s upcoming media package. This revelation caused Apple, Amazon, and YouTube to become front-runners in the competition for the rights. These three tech giants vigorously worked towards securing the rights.
Apple recently backed out of negotiations to acquire the N.F.L.’s Sunday Ticket package. Moreover, it cites their conclusion that the price quoted by the league was too high for the value. Despite much speculation of a partnership in recent weeks, Apple finally determined that the opportunity wasn’t worth it.
The tech giant stepped away from talks. As one person with knowledge of the deal explained, Apple’s highly competitive and demanding nature meant they could not justify investing such a large sum in an uncertain venture.
