The NFL Is Making A Strategic Mistake
The NFL is making a strategic mistake by moving playoff games to a PPV model. Why? The best way to build a loyal fanbase and a recurring audience is to broadcast widely via an advertising supported model which is “free” to the viewer. Make NFL content ubiquitous to young viewers through every delivery channel possible including social media and linear TV. There is an opportunity to use a la carte PPV games strategically as we describe below in number 3.
How would I experiment with a PPV model for NFL playoff games? I would do the following and I will use Saturday’s Chiefs vs. Dolphins broadcast on Comcast’s Peacock streaming service as an as an example:
Go wide linear TV: Were I NFL commissioner I would demand that Comcast broadcast the playoff game on linear TV (NBC via set-top box) and,
Go wide social media: I would also demand that Comcast make the game available on its/NBC’s social media outlets including YouTube. This demand may cut into Comcast’s affiliate revenue, but as the NFL I would be willing to take a bit less revenue from Comcast if I knew that the game would have greater reach as a result of being distributed across more outlets as more eyeballs = more potential lifetime fans = more potential lifetime revenue.
A la carte PPV games: I would offer Comcast the opportunity to participate in my NFL Network a la carte PPV stream either as an equity partner (JV deal) or perhaps via a product placement deal. For example, NFL Network could charge $1.99 for the game. When the game broke for advertisement spots on the linear TV and social media “free” broadcast, the NFL Network could fill those gaps with game analytics and guest spots (guests may include current and former players, NFL execs, Comcast content producers, etc.), any value-add content to justify the $1.99 cost versus free. The a la carte model would enable NFL fans to “pay as they go” rather than having to subscribe to an “everything on the menu” monthly charge streaming service.