The NFL Relaunches Its Own Streaming Product, Plotting Its Media Future Around Connected Devices

The National Football League hired Gil Moran in 2018 to reimagine NFL Game Pass, a streaming service featuring out-of-market games and other NFL content which made its North American debut in 2015. Moran’s brainchild, NFL+, unveiled on Monday, will provide fans with football, football and more football on any number of devices. Streaming content isn’t new. What’s different is the league taking it over with a mission to fill a $400 million hole — the fee paid by Verizon to stream the NFL in the league’s latest contract — and to do it on smart TVs, phones and tablets.

“If you’re on the go,” Moran told Forbes, “you’ve got a busy lifestyle – there’s something for every football fan.”

Rebranding Game Pass as NFL+ is only the first step. As media distribution evolves, NFL+ can align with NFL commissioner Roger Goodell’s goal of $25 billion in annual revenue by 2027.

“They know the strength of their content,” said long-time sports executive Chris Lencheski. “But knowing the strength of your content is one thing; having the ability to execute against that is another.”

Transforming NFL Mobile into NFL+

The NFL has a history of taking its time and learning its lessons before launching a new media enterprise. Game Pass, for example, was sold widely overseas before it came to the NFL’s home.

At $4.99 per month, NFL+ offers streaming of live NFL games in local markets for mobile and tablet devices only. A premium subscription goes for $9.99 per month and offers ad-free replays for all connected devices, including laptops, game consoles and media players like Apple TV and Google’s Chromecast. Moran told Forbes the league wanted to “reignite” its direct-to-consumer ecosystem and further prepare for “the next evolution of the business” as consumers are using connected devices for streaming services while dropping cable providers. “There’s a way to do direct-to-consumer differently,” Moran said. “I think it’s on us to challenge ourselves and push our own envelope.”

In 2005, the NFL shocked network executives when it struck a $600 million deal with Sprint that included a $200 million fee for mobile streaming rights. The agreement gave customers access to NFL mobile games outside of cable distribution. Sprint was allowed to stream NFL video highlights and access the league’s cable channel, NFL Network.

“It’s been building for years,” says sports media rights advisor Lee Berke. “All these (media) companies have the money but they haven’t had the experience in sports, and the NFL has been preparing them to produce, distribute and sell NFL content.”

In 2010, Verizon saw the promotional benefit of adding the NFL, and 4G allowed networks to offer a better streaming experience. The company acquired the rights from Sprint for a reported $720 million, which lifted the league’s mobile rights fee to $250 million per year. “That was a reflection of a marketplace that had developed,” said former CBS Sports president Neal Pilson. Since then, the mobile rights included live NFL games on Sunday afternoons, primetime and postseason games. Verizon also added streaming for NFL games to its Yahoo property. That increased the NFL’s rights fee to a reported $400 million.

Last year, Verizon sold its media business for $5 billion and didn’t retain the NFL’s mobile rights. Moran said he presented a plan to Goodell and club owners in 2021. It took mobile rights off the market and integrated with Game Pass to create NFL+. “We thought distributing on (an owned-and-operated platform) was the best thing for the consumer,” Moran said.

With NFL+, out-of-market live games in the preseason can be viewed on all devices, including Apple TV and Chromecast, with a Game Pass account. It’s here the league can further test tech around the future of its Sunday Ticket package, which is currently on the market for over $2 billion. NFL+ will not include access to NFL Network or the popular NFL RedZone channel. But plans to add the content are likely to emerge, especially should the NFL find an investment partner for its media business.

NFL+ will run on Google’s OTT system.

In the meantime, NFL+ allows the league to continue monitoring the streaming landscape. While the league doesn’t want to move too quickly and disturb its revenue from linear TV networks, which renewed for more than $100 billion, this move means it can better prepare tech companies for the future of distribution via connected devices.

Most importantly, the NFL knows traditional fans still prefer watching NFL games on linear TV, especially the Super Bowl, America’s top-rated show.

Respecting WWE’s groundwork

The league told Forbes that current Game Pass subscribers would be grandfathered into NFL+ if they have auto-renewal. The price drops from $19.99.

The NFL wouldn’t reveal the number of Game Pass subscribers or discuss valuation, but Verizon left NFL mobile rights on the table for more than $400 million. Moran said the NFL is “exposing ourselves to just subscription revenue” and doesn’t have a sponsor at the moment.

Moran said the NFL learned from the experience of the World Wrestling Entertainment’s streaming product, WWE Network. The publicly traded sports media company went direct to consumer in 2014. Though the service folded, WWE built the operation into a $1 billion revenue enhancer when it licensed rights to NBCUniversal’s streaming platform, Peacock. “Hats off to WWE,” he said. “I think they did a wonderful job coming out of the gate.”

Asked if the NFL’s mobile streaming rights could return to the market after it’s finished experimenting, Moran said, “Absolutely. But for this season, and our plans to grow the direct-to-consumer product, the rights are now being deployed in NFL+.”

Lencheski, the chairman of private equity consulting company Phoenicia, estimated NFL+ could eventually draw over 1 million paid subscribers, especially once it integrates internationally. To get help, Lencheski says, NFL partners like Verizon would help the league establish a base through “activation inventory.” The NFL would likely issue NFL+ codes for corporate partners to use in promotions. That would allow NFL+ to collect data on new customers will an eye toward expanding its permanent base of subscribers, Lencheski said.

Unlike cable, streaming subscribers aren’t locked into a lengthy contract. The NFL will be challenged to keep fans beyond the Super Bowl. “There comes a point where a customer says, ‘OK, I’ve got enough,’” Lencheski said.

In the offseason, Moran said NFL+ can offer fans historical games and possibly add content during the summer. “Those types of investments are what we’re looking to do going forward,” Moran said. “It’s in the process.”