Why Netflix Doesn't Want You To Chill 🍿
Plus is big tech taking over sport? Qatar opens Messi museum and a lawsuit over a pig.
Welcome to Athletic Interest,
Whether you are interested in sports business or videos of rich man babies pulling pranks on each other, YouTube has something for everyone.
And the options for sports fans are about to get a whole lot better. Google has just announced a deal with NFL to stream the Sunday Ticket games live on the YouTube TV platform.
At $2 Billion a year, YouTube is paying $500M more per season than previous rights holder DirecTV.
That’s a steep increase, especially considering that this is one of YouTube’s first forays into live sports.
So, is this a good deal?
Well, on the face of it, it looks like Google has overpaid significantly.
When DirecTV held the rights they charged around $300-$400 a year and attracted about 2 million subscribers.
Despite the steep price, DirecTV was never able to turn a profit.
Reports suggest that YouTube will also charge about $300 for a season pass. That means that even if all 5 million of the current YouTube TV subscribers add the NFL to their subscription, Youtube will only bring home $1.5B.
If YouTube adds advertising to the stream, this could drastically reduce the number of subscribers they need to break even.
Some analysts have said that 2.25M subscribers would see YouTube break even.
But even then, that’s a big ask. DirecTV spent millions on advertising for their service, which was sold at a similar price point, and still made a loss.
This isn’t to say that YouTube will regret its purchase.
Even if just 2 million people subscribe, these are potential customers for Google’s other services.
They could even up-sell by bundling the NFL stream with YouTube TV for a larger price.
Not to mention the fact that viewers for the NFL stream can be directed to other YouTube content after the game has finished, keeping them within the YouTube ecosystem and creating even more advertising dollars for the company.
Whatever approach Google/YouTube decides to take, their $2 billion bet on live sports has sent a strong message to their rivals Apple and Amazon: We are getting into live sports and we are willing to spend a lot.
The continuous influx of Big Tech into sports is definitely something to watch out for in 2023.
🍎 Sports Business Bites
🧘♀️ Youtube isn’t the only company looking at sports to increase revenues.
Netflix has just announced a partnership with Nike that will see the streaming service host a number of fitness videos.
The deal will start with five types of classes, including kickboxing, Vinyasa yoga, and core training.
In total, there will be 30 hours of fitness content, broken down into 90 classes that are released in two batches.
While Netflix is still avoiding live sports, even calling it overpriced, this move, alongside plans to increase sports documentaries and other sports-related media, suggests that the company also sees sports as a good investment for increasing interest in the platform.
🎲 All-inclusive package holidays can often have a bad reputation, but we are pretty sure everyone would love to go on this one.
Caesars Palace has just released a 5-day ‘Emperor Package’ for the 2023 Las Vegas Grand Prix.
Included in the eye-watering €5M price tag is:
A 4,700-square-foot terrace suite for 12 guests that overlooks the track
Paddock Club passes for the entire event.
A 24hr Butler service with a fully stocked bar.
A Chauffeur driven Rolls Royce
A private meal with Michelin-starred chef Nobu Matsuhisa.
Tickets to see Adele live
The fact that this package is even available shows exactly why the Las Vegas Grand Prix will be the most expensive Grand Prix in F1 history.
So… if anyone has a spare €5M, the Athletic Interest team would love to do a company retreat next year.
🏈 Ever since the name change the Washington Commanders (formerly Redskins) have been on the search for a new mascot.
To make help make the decision, the team has put two options up for a fan vote. The Hog vs The Dog.
The only problem is that, if the Hog wins, the Commanders could face some legal troubles.
In 2021, a group of former Commanders players actually trademarked the use of the words ‘Hog’ and ‘Original Hogs’ for use in the NFL/Commanders context.
Many of these players were part of a defensive line-up that was nicknamed the ‘Hogs’ and therefore feel a sense of ownership over the word.
The group has stated that they will seek legal help if the Commanders decide to use or trademark the name ‘The Hog’ for their mascot.
That being said, many experts seem to think that the Commanders would prevail. ‘Hog’ is a relatively common phrase and the Commanders could even argue that it was associated with their team long before the former players decided to trademark the phrase.
🇶🇦 The World Cup may have already left Qatar, but some entrepreneurial Qataris are already thinking of ways to bring the fans back.
One such scheme has been to turn Messi’s Qatari hotel room into a museum.
Yes, the room, in the University of Qatar, where Messi spent every night of the 2022 World Cup will be preserved in its current state and opened up as a tourist attraction.
🥤 Not all of the tributes to Lionel Messi and Argentina are quite so strange. In fact, we think Coca-Cola’s effort is actually very cool.
To commemorate the country’s historic moment, a limited run of gold cans with the World Cup logo will be sold in Argentina.
We wish you a golden start to 2023 - thanks for following Athletic Interest this year!
Great read as ever, quick point of editorial reference; The NFL team mentioned multiple times is actually named the Washington Commanders (not Raiders). The “Hogs” were a group of Offensive Lineman that played for the team (not defensive as is mentioned). Thank you