Netflix Stock – New NFL Broadcast Deal Tops $100B and Means More Streaming Football
The NFL is doing just fine, financially speaking. But it’s about to start doing even better, because the NFL is coming to a streaming service near you. That’s good news for football fans, but it might not be so great for
The NFL’s new TV rights deal, which takes effect in a year or so and will run for about a decade, is worth more than $100 billion. That equals more than $3 billion for each of the NFL’s 32 teams.
(ticker: DIS), which owns ABC and ESPN;
(VIAC), which owns CBS;
(CMCSA), which owns NBC; as well as Fox and
(AMZN) are all represented in the deal. Those are the usual suspects for NFL broadcasts. The new deal, however, is notable for the multitude of streaming platforms that NFL games will be soon be available on: NBC’s Peacock, CBS’s Paramount+, Disney’s ESPN+, Fox’s Tubi, and Amazon Prime.
A consumer paying for all those services now would fork over about $35 a month. (Tubi is free.) That, however, is before the entertainment conglomerates fork over billions for football content, which might push up prices. And NFL fans still need some sort of cable or streaming service, such as YouTube TV ($65 a month) from
(GOOGL), or a digital antenna to get all of the games.
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That monthly subscription total of $35 doesn’t even include what the kids still want: Netflix (NFLX) and Disney+, which, for now, don’t stream live sports. Adding it all up, complete NFL and entertainment coverage could cost a U.S. family roughly $120 a month.
Home entertainment viewing is still changing rapidly.
“Mark it down. March 18, 2021 is the day the multichannel TV bundle died,” wrote LightShed analyst Richard Greenfield in a Friday report. That’s not great news for cable pricing, but it might mean a la carte, per channel, pricing options. If cable pricing is attractive enough, maybe consumers will reattach the “cord.”
Wasn’t streaming supposed to be cheaper? It’s getting expensive to be a fan. But it’s getting better to be an NFL owner.
Dallas Cowboys owner Jerry Jones paid about $140 million for his team more than three decades ago. The Cowboys, according to Fintech Zoom, are now worth $5.5 billion. That would make the average annual return for Jones about 12.5%. Good, but not what people might expect for an asset that grows 40-fold.
Streaming stocks aren’t really reacting to the NFL news. Netflix shares, for instance, are up 0.7% in premarket trading, despite rising competition. U.S. stock markets are recovering from Thursday’s selloff.
Invesco QQQ ETF
(QQQ), which tracks the Nasdaq 100, is up 0.5% in premarket trading. The QQQ dropped 3.1% Thursday.
futures are up 0.3% as well.
Write to Al Root at [email protected]Corrections & amplifications:The NFL’s new contract is worth more than $3 billion per NFL team. An earlier version incorrectly said it was $3 billion per team per year.