Will You Soon Be Watching "The NFL On Google?"
This Labor Day weekend tens of millions will be travelling, enjoying the great outdoors. Yet, next weekend will see a different migration: to couches across America. Tens of millions will migrate back into their living rooms, whip up some nachos, and watch the daytime games on CBS and Fox.
However the most zealous fans can currently watch almost any daytime game on DirecTV's (Nasdaq: DTV) Sunday Ticket. Its a package which costs hundreds of dollars, but has become a major draw for DirecTV. The company reportedly pays about a billion per year for Sunday Ticket, but still loses money on the package. Overall, even with direct losses piling up on Sunday Ticket, DirecTV has been happy with the package as a loss leader which encourages users to switch to broader satellite packages.
Yet, that money losing package might get even more expensive in the future. The NFL confirmed commissioner Roger Goodell met with Google (Nasdaq: GOOG) last week, the presumed interest was Sunday Ticket.
In the video below Fool analysts Eric Bleeker, Jamal Carnette, and Simon Erickson discuss the NFL's continued success stretching the value of its content. In addition, they look at how the NFL's continued negotiating clout with media companies could illustrate how sports have become the kingmaker in the new age of media where giant tech companies are looking to bring content online.
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The article Will You Soon Be Watching "The NFL On Google?" originally appeared on Fool.com.
Eric Bleeker, CFA has no position in any stocks mentioned. Jamal Carnette has no position in any stocks mentioned. Simon Erickson has no position in any stocks mentioned. The Motley Fool recommends DirecTV and Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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