Google enters talks with NFL to buy rights to the 'Sunday Ticket' service
骋辞辞驳濒别听滨苍肠 has opened discussions聽with聽the聽National Football League聽to buy the rights to the "Sunday Ticket" subscription TV聽service聽now owned by DirecTV, tech blog AllThingsDigital reported on聽Wednesday, citing sources familiar聽with聽the matter.
The acquisition, if consummated, would dramatically boost the media efforts of the Internet search company, which is trying to ramp up original programming and earn subscription revenue as opposed to advertising income.
The "Sunday Ticket"聽service聽allows聽NFL聽fans to watch a wide variety of football games outside of their local markets.
狈贵尝听颁辞尘尘颈蝉蝉颈辞苍别谤听Roger Goodell聽and league officials called聽on聽Google, Facebook Inc and several other key Silicon Valley companies聽in聽recent days, as part of efforts to improve their content,聽NFL聽spokesman Alex Reithmiller聽confirmed聽on聽Wednesday. He did not elaborate.
But the tech blog cited sources saying聽Google聽CEO Larry Page 补苍诲听YouTube聽content chief聽Robert Kyncl specifically discussed acquiring the rights to the popular Sunday Ticket package聽with聽Goodell and his delegation.
Google's聽YouTube聽last year expanded its stable of original content by promoting and investing聽in聽hundreds of dedicated channels, hoping to shed its image as a repository for grainy home videos and to start putting out quality content to boost advertising sales and earn subscription revenue.
A content tie-up between the popular聽NFL聽补苍诲听Google聽could have ripple effects throughout the media industry, analysts said. It could bolster demand for services that bypass traditional cable, pressure values for some TV and satellite networks, and encourage users to sign up for聽broadband, Janney Capital Markets analyst聽Tony Wible聽said.
DirecTV has sounded upbeat about its chances of renewing the estimated $1 billion-a-year "Sunday Ticket" contract聽with聽the league when it expires after the 2014 season.
The exclusive package, which allows fans to watch games outside of their home markets, is considered by analysts an important tool for the聽satellite TV聽service聽in聽efforts to attract new subscribers.
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AllThingsD called聽talks聽between聽Google聽and the聽NFL聽"informal" for now.
Neither聽Google聽nor DirecTV responded to requests for comment.
Google's addition of "Sunday Ticket" would mark its biggest foray so far into the realm of quality programming and subscription-video services. It could also accelerate "cord cutting," or viewers switching to online-viewing sources from traditional cable channels, analysts said.
However, the聽NFL聽could come under significant pressure from holders of its other TV licenses, the traditional TV and broadcast networks, who would seek to discourage a tie-up聽with聽an Internet powerhouse like聽Google.
"If聽Google聽were to secure the Sunday Ticket rights, we may have a situation where consumers can start to create a more viable alternative" to a traditional cable plan, analyst Wible said.
He speculated that along聽with聽Netflix聽Inc and Hulu services now available over the Internet, consumers could begin to create a true "a la carte" package聽in聽which people select the specific TV services they pay for.
"While we don't know the pricing for any聽Google聽product, it is safe to assume this bundle would be far cheaper than a traditional TV package," he said. "These dynamics have the potential to exacerbate cord cutting and may create a vicious cycle as the cost of programming聽on聽traditional TV would move higherwith聽each loss of a (subscriber) - increasing the odds that another will cut the cord."
