Have We Just Witnessed a Watershed Moment in Online Streaming?
As Andy Bernard (portrayed by Ed Helms) once put it on NBC’s The Office, "I wish there was a way to know you’re in the good old days before you’ve actually left them." Similarly, I wonder if it’s possible to know when you’ve just witnessed a groundbreaking moment. Because I have a sneaking suspicion the media world might be in the middle of one.
Recently, Twitter won the rights to stream the NFL’s 2016 slate of Thursday Night Football exclusively on the social networking site for free. The NFL confirmed the news on Twitter, surprising many who assumed heavyweights such as Amazon or Verizon were in line for the streaming rights.
It’s obviously huge news for Twitter. Their stagnant user growth numbers have been well-documented. Their big splash of 2016 – an algorithm change – was quickly bypassed when Instagram (owned by Twitter’s biggest rival – Facebook) announced an algorithm change of their own. While their current user base continues to be engaged with the platform, new Twitter users seem to be few and far between. This news could change that drastically.
But this announcement seems to bear more weight than just its boost for Twitter’s bottom line. It could be the start of a new way we view and interact with sports programming.
Before I go any further, let me be clear: TV is not going away. The reported price tag for this package is somewhere between $10-$15 million (the official details have not been released). In comparison, according to Re/Code, CBS and NBC collectively paid about $450 million for the rights to broadcast the Thursday night games. Those networks have their own digital rights to the games and they will continue to own most of the digital advertising inventory.
No, the impact of this announcement is what it means for social media in general. It embeds social media even deeper into the fabric of our culture. It has grown so much over the last decade, to the point where it is hard to imagine life without social media. But where else can the industry grow? This deal shows us how.
Facebook tried, and mostly failed, to jump into the mainstream sports scene with its Sports Stadium feature for the Super Bowl. If Thursday Night Football is a successful venture for Twitter, it will be interesting to see what other social networks look for digital streaming opportunities. Because they are certainly out there.
Major League Baseball has seen multiple teams sign huge TV rights deals over the last few years, with more looking to cash in. As the powers that be continue to haggle over in-market streaming rights, it could be a growth opportunity for networks like Facebook or Periscope.
That is purely speculation on my part, and the exact nature of what the game stream will look like on Twitter is still unclear. But recent history says that online streaming of NFL games is a lucrative business.
Just last October, Yahoo paid about $20 million for the rights to the Buffalo Bills – Jacksonville Jaguars game played in London. It reportedly attracted more than 15.2 million unique viewers. Twitter is certainly hoping Thursday Night Football will have a similar payoff.
We may need a few years to know whether or not this announcement was just another blip on the media radar or a moment for the history books. But something about this sure feels like the beginning of the good old days for online sports streaming.
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