Alphabet’s (Nasdaq: GOOGL) YouTube is reportedly in advanced talks with the National Football League to acquire the rights to the league’s subscription platform NFL Sunday Ticket. According to the people familiar with the matter who told The New York Times, the video streaming giant is rumored to be considering about $2.5 billion a year to the league.
NFL Sunday Ticket is a subscription-only service that allows football fans to see the majority of Sunday afternoon games. DirecTV, a satellite broadcaster co-owned by AT&T Inc. and private equity firm TPG Inc., currently pays $1.5 billion each year for Sunday Ticket rights.
According to Puck’s Dylan Byers, Apple has ended talks to get the rights to NFL Sunday Ticket. The smartphone maker reportedly dropped out of the agreement because it does not “understand the logic,” not because it cannot afford the NFL’s alleged $3.5 billion asking price.
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Next season, NFL games would be available to stream on two subscription platforms, YouTube TV and YouTube Primetime Channels, under the scenario being considered.
If the contract with YouTube is approved, it could result in a surge in demand for YouTube TV, the company’s premium streaming service. DirecTV has 1.5 million to 2 million Sunday Ticket customers who pay an extra charge to see every game on Sunday afternoons except those broadcast in their home cities.
YouTube TV has more than five million members and trial users, according to the company, which charges $64.99 a month for the subscription.
DirecTV’s Sunday Ticket rights will expire at the end of the 2022 regular season. It became evident during the previous year that the league intended to sell the Sunday Ticket rights to a streaming provider.
Should it push through, the deal would be the NFL’s second major streaming package, following Amazon’s acquisition of exclusive rights to the league’s Thursday night games earlier this season.
Google last traded at $89.60 on the Nasdaq.
Information for this briefing was found via Bloomberg, The New York Times, The Verge, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
