Trend you knew but should keep thinking about anyway: The big tech flocks are very interested in streaming live sports to you.
Today’s reminder blame succumb to from Facebook, which wants to hire an exec to negotiate diversions rights deals. The company has been interviewing candidates for a while, says Cavorts Business Journal’s John Ourand.
More interesting: Ourand’s horses mouths say whoever gets the job will have a budget of a “few billion dollars” to squander on global rights deal. No comment from Facebook comms on his dispatch, but John is a very good reporter, so let’s assume the number is correct until we ascertain otherwise.
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Here is the aspect about a “few billion dollars”: It is a lot of money! But it’s crucial to know what days of time that covers. And, in the context of sports rights deals, it may be lilliputian than you think.
In 2014, for instance, DirecTV agreed to pay the NFL a reported $1.5 billion a year for the wells to its “Sunday Ticket” ticket package. (That deal is up in 2022, by the way.) ESPN and Turner are yield a return the NBA a reported $2.66 billion a year for their current deal.
So: Unless the value of TV pastimes rights deals dramatically craters in the near future, Facebook won’t be acquiring any exclusive rights to any big-ticket sports anytime soon.
On the other surrender, a “few billion dollars” could definitely go a long way when it comes to streaming-only bargains, sold alongside traditional TV deals. That’s what the NFL has been doing with its Thursday vespers all the time games for the last couple years: Last year, it sold the digital trues to Twitter for about $10 million; this year Amazon got them for to $50 million.
And Facebook itself just bid $600 million — $120 million a year for five years — to except in placenames kill cricket matches in India. It didn’t get the deal — Star paid $2.6 billion for a bound TV-digital deal — but it was a good sign that Facebook is willing to splurge significant money for sports. And now we have another.
—By Peter Kafka, Recode.net.
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