Shulou(Shulou.com)11/24 Report--

Negotiations over the right to broadcast NFL's "Sunday ticket" (Sunday Ticket) program are expected to continue into next year. Apple, which is seen as the leader in the negotiations, is facing competition from Google.

Roger Goodell, president of NFL, flew to Sun Valley, Idaho, this summer to attend the annual media conference held by Allen & Co. At the time, he said confidently that NFL was about to announce the latest blockbuster television rights agreement. "We may make some decisions in the fall," he said. "

However, nearly five months later, NFL is still looking for a technology or media company to take over DirecTV's Sunday ticket rights. With Sunday tickets, fans can watch all NFL games, not just those broadcast in their own region. The negotiations are now expected to be extended into next year, according to people familiar with the matter.

Negotiations on the broadcasting rights of "Sunday tickets" have attracted a lot of attention in the industry. Live sports, especially NFL games, is one of the only popular programs left on traditional TV. Who will spend the broadcasting rights, the contract fees, and the transaction structure will have a huge impact on the future of the sports, media and technology industries.

The competition for broadcasting rights is also likely to set a precedent. How much technology giants such as Apple and Google are willing to pay to steal viewers from traditional TV companies is also a big concern for the industry. By contrast, traditional television companies still rely on cable payments and advertising to survive.

The pattern of competition for broadcasting rights has changed as the negotiations continue, people familiar with the matter said. For some time, sports and media executives have regarded Apple as the leader. Some people who have been involved in the broadcast rights bid believe that Apple has reached an agreement with NFL.

According to the latest news, Google is stepping up negotiations to win this popular show for YouTube TV despite the delay in the broadcast rights agreement. YouTube TV is Google's streaming / cable service. Other interested bidders include Amazon and Disney's ESPN.

Robert Kyncl, YouTube's chief business officer, played a key role in Google's bid for broadcasting rights, having a close relationship with Brian Rolapp, NFL's chief business officer. Although Mr Kinkel will accept a new job as chief executive of Warner Music Group early next year, he has promised to complete the deal with YouTube, according to people familiar with the matter.

Negotiations with Apple, Google and other companies have been protracted as NFL tries to bundle Sunday tickets with other media assets such as NFL Network and NFL RedZone, according to people familiar with the matter.

Last year, NFL hired Goldman Sachs to help it explore the sale of shares in these media businesses. NFL realized that NFL RedZone would compete with Sunday tickets for paying users. In such a deal, NFL would need to form a joint venture with other investors, who would want to have a say in the joint venture's operating structure.

A media executive who has negotiated with both Apple and NFL said that Apple and NFL were both strong and very insistent on their ideas, which was another reason for the impasse.

NFL, Apple, Amazon and ESPN all declined to comment. Google has yet to respond.

NFL currently charges more than $2.5 billion a year for Sunday ticket rights, an increase of $1 billion a year. The current contract expires at the end of the season. NFL hopes to sell the broadcasting rights to a long-term partner. Last year, NFL signed a packaged broadcast rights package for Thursday, Sunday and Monday games for 11 years.

The total value of the deal NFL hopes could exceed $10 billion, but the current economic slowdown could pose challenges. After years of spending money, technology and media companies are under pressure from Wall Street and investors to find ways to cut costs and increase efficiency.

The economic downturn has led some Wall Street analysts to be bearish on Amazon's deal to win the rights to Thursday Football Night for $1 billion a year. Tom Ford (Tom Forte), an analyst at D.A. Davidson, an investment bank, doubts whether the increase in Prime membership or advertising revenue brought about by this broadcasting right can reduce the cost of Amazon. He pointed out that Amazon is facing the dilemma of copyright realization, so it is unlikely to seriously bid for the broadcasting rights of Sunday tickets.

"it would be shocking if [Amazon] invested more in the NFL competition, given the widespread shrinking clothes and diets of technology companies and the copyright cash challenges Amazon faces," he said.

There are similar doubts about the feasibility of ESPN participating in the bidding. Rich Greenfield, an analyst at LightShed Partners, said Disney, which owns 80 per cent of ESPN, is likely to ask ESPN to cut costs or even sell it after Robert Iger returns as chief executive. Mr Iger told a conference hosted by Vox Media in September that he was "not bullish" on some traditional media businesses.

Google is also under pressure to cut costs and streamline its team. In October, Google executives promised to halve hiring and cut spending after advertising sales in YouTube and search engine businesses slowed. It was also reported this week that Google's parent company is planning to lay off tens of thousands of people. However, according to people familiar with the matter, Kinkel said that the bid for the broadcasting rights of "Sunday tickets" will not be bound by austerity. He thinks the investment is worth it and will contribute a lot to the growth of YouTube TV paying users, because DirecTV has said that the current "Sunday ticket" partnership has brought in about 2 million paying users.

Apple's business has remained normal for most of the year, but problems in the supply chain have affected production and could lead to a drop in sales during the Christmas holiday season. Still, Tim Cook, Apple's chief executive, has said he is bullish on investments made during the economic downturn and that a 10-year partnership agreement with NFL is in line with that idea.

Three people familiar with the matter said that earlier this year, NFL asked Apple to reach a cooperation on Sunday tickets, and there was another consideration: relationship development. NFL and Apple had not yet reached any major business partnership at the time. That sense of urgency also waned after NFL reached an agreement with Apple this fall to become a sponsor of the Super Bowl halftime show.

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