Reports claim Google and Youtube met with the NFL to talk about buying the rights to the Sunday Ticket Package.
Here are five fast facts you need to know.
1. Top Execs From Google Met With Roger Goodell Yesterday
AllThingsD writer Peter Kafka wrote that, according to his sources, Google CEO Larry Page joined by Youtube Content head Robert Kyncl met with NFL Commissioner Roger Goodell yesterday. Kafka explains that Goodell and his team make this sojourn to Silicon Valley annually. Despite the tradition, there was something different about this year’s visit. Both parties could have met to discuss the rights to DirecTV’s Sunday Ticket Package.
2. The DirecTV Deal Expires at the End of 2014
With the ownership deal expiring soon, it makes sense for the league to be meeting with new buyers. The Sunday Ticket Package broadcasts all out of town games to subscribers of the cable provider. Two million customers are supposed to be part of this package base. The current deal costs DirecTV an estimated $1 billion a year which could mean the NFL would want to charge more for a new buyer. The head of DirecTV Mike White has said he’s still interested in continuing this partnership but at a different price.
3. Youtube Already Has a Sports Streaming System Set Up
Although Kafka’s sources told him the talks were informal, Google and Youtube would benefit from obtaining these rights. Youtube has set up a new system to stream a variety of sports events. Content they can play included live-streaming of the Olympics along with D-league NBA games. Working with these firms could give NFL a wider reach domestically and internationally expanding upon the current audience DirecTV has. Goodell and his team meeting with Kyncl and Page first could mean the NFL is interested in building on this infrastructure.
4. Could Chromecast Be Involved With This Discussion?
Last month, Google unveiled Chromecast. The main purpose of the dongle is to “unite your video experiences” across all platforms. If this deal comes to fruition, the search giant would be able to control a valuable entertainment commodity to support this device. The purpose of this package is to let viewers watch their team every Sunday throughout the season. If Google and Youtube gain these rights, Chromecast’s sales would soar if customers were able to pick up a game regardless of their location.
5. Google Has Deep Pockets
Youtube and Google are rich companies. They would have no issue being able to stream these games at a higher price. Plus, this deal would give them an edge over other companies streaming plans. Apple is working on something similar to include in their new TV’s when they added HBO and ESPN a few months ago. Goodell is set to meet with other Silicon Valley delegates so this is still a rumor. Page and Kyncl make an effective team so the details of this talk could have been very persuasive.