Patriots Talk: Robert Kraft Sees The NFL Moving Forward With Live-streaming
In today’s digital landscape, where cell phones are owned by the large majority of America’s populace, its become clear that the NFL sees the opportunity that the sport will need to do moving forward.
The simple idea that people watching football live as they go will become the new replacement to how television seemingly was to the traditional movie theaters; another alternative form of media. In an interview with WPP Group CEO Martin Sorrell, Patriots owner Robert Kraft spoke up on his recent thoughts on their new OTT ad package deal with Amazon.
“We’ll be very interested to see how Amazon goes as it’s behind the paywall. The thing we have to be careful of is millennials. They don’t watch TV, they don’t have TVs or subscribe to cable. So we have to bring that audience in. Partly it’s done through fantasy games and linking to that. Over-the-top is a great opportunity.”
Kraft’s approach is that in order to continue to grow the NFL’s audience, they will need to explore other forms of revenue regardless of how small in scale they may be. Amazon’s service will allow the streaming of NFL games to all Amazon Prime subscribers for the 2017 season (Subscription service is $99 a year).
This will be a new source for the league and will likely be a ‘dipping their toe into the pond’ sort of thing as the league has been rather cautious with how they have approached live-streaming games.
Reuters revealed on Thursday that Amazon will charge advertisers $2.8 million for an their “OTT” ad package around the NFL’s Thursday night games.
The deal Amazon paid was $50 million for the non-exclusive rights to NFL games starting this season and while it seems substantial, its still nothing compared to what networks like NBC, CBS, and ESPN have to pay to show NFL games on their stations.
— NFL News Daily (@NFL_NDaily) June 23, 2017
Robert Kraft believes that one day, the younger generation is less likely than their parents to own a television, and the trends today seemingly speak some truth to those claims.
Most younger people are unlikely to pay for hundreds of channels, to only watch about 4-5 of them if they have the time. The key ingredient to their success is to keep their audience engaged and involved in order to bring in the same revenue that their traditional audience (Television viewers) brings in.