Sports: November 2003 Archives

NFL and the Online Subscription Revenue Model

By
David Eckoff
on November 17, 2003 12:37 AM | | Comments ()

This article was originally published on PaidContent.org on November 17, 2003.

sportstech2003.gif Evan Kamer, Senior Director of New Media at the NFL, made a solo presentation to the audience on the NFL's online subscription business.

Kamer said key factors that prompted NFL.com to launch an online subscription service this season were 1) a large and passionate audience and 2) a critical mass of broadband users.

Kamer shared data with the audience: by January 2003, NFL.com had built an audience of 15 million unique users; and research sized the broadband audience at 40 million broadband users (Nielsen), with 40-50% saying they would pay for content.

The NFL decided to launch an online subscription service to further diversify their revenues while still maintaining a significant amount of free content on the site. There are currently two products on the NFL's roster: NFL Field Pass (includes live game audio) and NFL Fantasy Extra (a fantasy sports game). Results according to Kamer: approx 100,000 sign ups to-date; half annual subscription and half monthly subscriptions.

Next up for NFL.com, according to Kamer: bundling and packaging of multiple services, more team involvement, new products and wireless.

In my next report, I'll have an exclusive one-on-one interview with Bobby Burton, Executive Vice President at Rivals.com.

Sports Media & Technology Conference Starts with Fireworks

By
David Eckoff
on November 14, 2003 12:52 AM | | Comments ()

This article was originally published on PaidContent.org on November 17, 2003.

sportstech2003.gif Day One of the Sports Media & Technology conference kicked off Thursday in New York City.

The day started with fireworks.

During the first panel session "Sports-Tiered Pricing and the Battle Over Increasing Rates", panelists Leo Hindery (Chairman & CEO, YES Network) and Fred Dressler (Senior VP of Programming, Time Warner Cable) squared off in a heated debate.

Hindery said sportscasts are worth the highest prices in cable because they bring in the most viewers.

"Let's put every network on the table and compare their ratings with their costs," said Hindery.

Dressler said sports programming costs are climbing 12%-15% every year. But Time Warner Cable can't get those expenses back from subs because if the rates to consumers go higher than 5% a year, customers cancel and defect to DirecTV and EchoStar.

"Just because George Steinbrenner can't say no to a high-priced player doesn't mean I have to say yes to Leo," said Dressler.

Attendees at the conference were buzzing the rest of the day about the heated exchange during this panel.

For more on this session, click over to the report in Variety.com (free registration required).

Other panels including "Understanding the Realities of the HDTV Transition", and "Gaining Control of the Emerging Broadband Sports Revenue Stream" (yours truly was a panelist on that session) were more tame.

In my next report, I'll cover "The Future of Video Games Online".

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David Eckoff is a media and technology executive.
Views expressed here are his own and not those of his employer.

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