MS deal with NFL supposedly cost $400 Million
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PetriP-TNT
Member
Arkos
Nose how to spell and rede to
On mobile, can't copy and paste quotes from articles, quick Googling, but
http://m.adweek.com/news/television/nbc-gobbles-nfl-ad-dollars-145256
$500,00+ for 30 second Sunday Night Football ad (2012)
http://m.us.wsj.com/articles/a/SB10001424052970204026804577098774037075832?mg=reno64-wsj
$350,000+ for 30 seconds, 2011, seems to be referring a general average but it isn't clear
The Super Bowl had 100+ million viewers this year, and ads cost $4 million for 30 seconds
http://en.m.wikipedia.org/wiki/Super_Bowl_XLVII
So let's call it a conservative $500,000 for a 30 second ad. $1m for playoffs and $4m for Super Bowl. Let's assume that in this deal, the equivalent of one ad for MS is built in to every nationally televised NFL game.
Let's say that there are 4 nationally televised NFL games every week (counting MNF, not counting TNF, and not counting the second game that airs at 1:00-- if you don't understand this, just know that it's a pretty conservative estimate). That's 64 regular season games times $500,000 = $32m
There are 10 playoff games for $10m.
The Super Bowl for $4m.
So $46m/year just to buy one 30 second ad space in every NFL game.
Times the five year deal = $230 million
Round it down to $200m if you want that's still half of the deal already worth it, not even accounting for inflation, and this is JUST to buy regular ad space in every NFL game.
Plus, MS is getting so much more than just ad space out of this deal: name recognition, approval of trusted NFL brand, mainstream media presence, way more than simple ads can buy. I saw some old, well known ESPN guy (forget his name lol) touting the Xbox today. That's a big deal
(Article about how ESPN is super profitable even without much of an overseas market, don't know if it's a blogger or an official WSJ post but it's the numbers that matter: http://www.forbes.com/sites/kurtbad...valuable-media-property-and-worth-40-billion/)
So all this considered I think my numbers are probably conservative. And then you add in the money from the XBL situation that they'll make over 5 years.
Say what you want about it as it affects gaming, I'm not happy that it's their focus and I'm looking forward to the PS4, but IT IS A SMART BUSINESS MOVE.
http://m.adweek.com/news/television/nbc-gobbles-nfl-ad-dollars-145256
$500,00+ for 30 second Sunday Night Football ad (2012)
http://m.us.wsj.com/articles/a/SB10001424052970204026804577098774037075832?mg=reno64-wsj
$350,000+ for 30 seconds, 2011, seems to be referring a general average but it isn't clear
The Super Bowl had 100+ million viewers this year, and ads cost $4 million for 30 seconds
http://en.m.wikipedia.org/wiki/Super_Bowl_XLVII
So let's call it a conservative $500,000 for a 30 second ad. $1m for playoffs and $4m for Super Bowl. Let's assume that in this deal, the equivalent of one ad for MS is built in to every nationally televised NFL game.
Let's say that there are 4 nationally televised NFL games every week (counting MNF, not counting TNF, and not counting the second game that airs at 1:00-- if you don't understand this, just know that it's a pretty conservative estimate). That's 64 regular season games times $500,000 = $32m
There are 10 playoff games for $10m.
The Super Bowl for $4m.
So $46m/year just to buy one 30 second ad space in every NFL game.
Times the five year deal = $230 million
Round it down to $200m if you want that's still half of the deal already worth it, not even accounting for inflation, and this is JUST to buy regular ad space in every NFL game.
Plus, MS is getting so much more than just ad space out of this deal: name recognition, approval of trusted NFL brand, mainstream media presence, way more than simple ads can buy. I saw some old, well known ESPN guy (forget his name lol) touting the Xbox today. That's a big deal
(Article about how ESPN is super profitable even without much of an overseas market, don't know if it's a blogger or an official WSJ post but it's the numbers that matter: http://www.forbes.com/sites/kurtbad...valuable-media-property-and-worth-40-billion/)
So all this considered I think my numbers are probably conservative. And then you add in the money from the XBL situation that they'll make over 5 years.
Say what you want about it as it affects gaming, I'm not happy that it's their focus and I'm looking forward to the PS4, but IT IS A SMART BUSINESS MOVE.
Evolution_1ne
Banned
NemesisPrime
Banned
Roughly same amount that Sony spend on FIFA.
Goodacre0081
Member
why look forward to 4 exclusive fleshed out games when I can get content for a sport I don't watch.
tiggerkiddo
Member
NFL is king, if this is even decent, it'll pay itself back easily.
Pristine_Condition
Member
Wow. You did all that research for NOTHING.
This deal doesn't cover TV advertising at all. The most advertising Microsoft gets is, starting next season, their logo on the hood over the monitor used by the official during video reviews. Later, they may implement surface tablets on the sidelines.
The TV networks (Fox, CBS, and NBC,) that bid billions of dollars (the last extension between the three networks lasts until 2022 and costs a total of about $3 Billion a year) are the ones who get to sell the TV ads. They can't have the NFL undercutting that, and contractually, they wouldn't tolerate it.
Any TV advertising Microsoft wants during NFL games, Microsoft will have to pay the networks for, at the full network rate, just like anybody else, including Sony, who could very well have their long-time pitch man, Payton Manning, doing an ad for PS4, as he has done for Sony TVs and cameras in past seasons.
GraveRobberX
Platinum Trophy: Learned to Shit While Upright Again.
The broadcasting partners pay in the fucking billions for those rights, 400mil ain't cutting that shit
It's almost MS bought the stat whoring/fantasy sports part of the NFL, great for the US region but what about the rest of the world?
NFL sure ain't global, I know that much
NFL season is so short and squeezed into a 5 month schedule, what is MS going to do with the 7 months NFL is off, how much is it going to recoup back from this investment
Also it has to fight so many other service unless they get to attach themselves to it
Red Zone, All-22, Sunday NFL Ticket, sports packages cable/satellite providers offer
@E3 MS better have every fucking Cable provider locked the fuck down, even if one or two are missing = competition that MS will have to overcome
It's going to into a battle with heavy hitter themselves
Edit: Beaten =/ by Pristine_Condition
Killing_Joke
Member
So MS paid 400mil just to have NFL on their press release. I'm interested to see what they come up with. But i'm 99% positive the fee for whatever they do will be expensive. Roger knows how to milk the NFL.
Xplatformer
Member
Starting to like college football and pro basketball way more anyway. NFL is going soft.
Arkos
Nose how to spell and rede to
Daww, well at least like I said it was quick. So no TV ads. But don't they regularly advertise who their cameras are provided by (Sony?) and things like that? Plus, the hood thing may seem insignificant, but that was my point: even if it's just an official logo on top of the official replay booth, 30 seconds of exposure per NFL game. I still think that's a reasonable estimate?
Not only is this only relevant for the US market, I still don't understand what they're paying for.
'Exclusive' content? Does that mean that NFL games will no longer be broadcast on other TV services and would have no live audience?
Because if it's just the fantasy league bullshit then this is a horrible waste of money lol. I mean it's neat if you're into that but 400 million dollars? You could buy exclusivity on CoD/GTA and seal the deal for that much money.
'Exclusive' content? Does that mean that NFL games will no longer be broadcast on other TV services and would have no live audience?
Because if it's just the fantasy league bullshit then this is a horrible waste of money lol. I mean it's neat if you're into that but 400 million dollars? You could buy exclusivity on CoD/GTA and seal the deal for that much money.
400 Xbox One XBLA games at $1 million dollars each, if the average budget is around $750K for an XBLA game is anything to go by.
By all means spend that 400mil on something the rest of world doesn't give a shit about MS.
It's a fancy cable box. How many games does yours play?
lazybones18
Banned
Scofield94941
Member
I play fantasy football every year and this NFL stuff on XBOXONE is really kind of pointless to me. I can use my phone, or check after a game if I want my stats. Who the hell would skype to anyone about fantasy football while football is going on? I do not get what they paid for? If there is a real discount in sunday ticket I'll maybe buy they system because I'm a Saints fan from Ohio
I don't get it. They've already won the US with 360. And their answer is to spend even more money there? Microsoft truly has the worst managers of any corporation, they are just so full of shit. They made the company cool with Xbox 360 and Windows 7 and ever since they announced Courier was discontinued the company is just a giant mess.
Shitty products, shitty names, how do you try to compete with Apple if you're so arrogant to think people will accept everything? Probably even for a premium price of $499 (since all the other rumours turned out to be true). I can't remember any company that willingly destroys everything they've built over the past decade just because they're greedy. Sony comes to mind but at least they offered value for all the money they wanted. I don't care about services, I care about hardware.
400 million (let's not even start with how much they spend on EA and Activision and Spielberg), that's like half of what the RROD cost them. It's an insane amount of money that could be spend on far superior GPUs for 4 million consoles (until price comes down so they can afford it otherwise). Is that what Kinect told them? That you can make a shitty product and just market it to death and it will be successful?
Shitty products, shitty names, how do you try to compete with Apple if you're so arrogant to think people will accept everything? Probably even for a premium price of $499 (since all the other rumours turned out to be true). I can't remember any company that willingly destroys everything they've built over the past decade just because they're greedy. Sony comes to mind but at least they offered value for all the money they wanted. I don't care about services, I care about hardware.
400 million (let's not even start with how much they spend on EA and Activision and Spielberg), that's like half of what the RROD cost them. It's an insane amount of money that could be spend on far superior GPUs for 4 million consoles (until price comes down so they can afford it otherwise). Is that what Kinect told them? That you can make a shitty product and just market it to death and it will be successful?
Even someone like me, who is a HUGE NFL fan and play fantasy football, didn't magically get sold on the Xbox at this partnership. I know a lot of you are saying "Xbox One: As in the amount of countries Microsoft clearly cares about" and I agree, but even in America, this feature doesn't automatically sell anyone on the console. My friend and I both thought it was "neat" but never thought we'd use it given the circumstances and how we watch the games, so it's not even selling all huge American football fans.
Sure, it will somehow sell the console to some people who fall for advertising, but every other headline about Microsoft today isn't forgotten by hardcore gamers in the U.S. just because of the TV nonsense.
I'd like for MS to have a decent E3 to at least convince people they're still maintaining some level of sanity, but they have to do more than throwing money at businesses and hoping they bite. It might work for the NFL and a certain company that won an award two years in a row for being an anti-consumer company, but they need to show off some of their own big games to clear up this mess. We all know they WILL to some extent, but the question is if it's enough to make us forget all about the bullshit so far.
Sure, it will somehow sell the console to some people who fall for advertising, but every other headline about Microsoft today isn't forgotten by hardcore gamers in the U.S. just because of the TV nonsense.
I'd like for MS to have a decent E3 to at least convince people they're still maintaining some level of sanity, but they have to do more than throwing money at businesses and hoping they bite. It might work for the NFL and a certain company that won an award two years in a row for being an anti-consumer company, but they need to show off some of their own big games to clear up this mess. We all know they WILL to some extent, but the question is if it's enough to make us forget all about the bullshit so far.
Pretty much. Can't argue with the numbers
metalslimer
Member
I see very little chance this pays off. I watch football every sunday and none of what they showed appealed to me at all. Hell their shit is actually worse than using an iPad. Unless ESPN stops showing stats this is the most worthless thing I've seen in a long time. LOL Roger Goodell gets a free 400 mil
Yeah I don't get it either. Like Pristine_Condition noted above, what are they actually paying for?
Fantasy football shit? Yay?
You could probably buy Grand Theft Auto V and VI exclusivity for that.
michaelius
Banned
Football is loved all around world except one country where people belive you are supposed to play with egg and carry it in your hands
schwabdizzle
Banned
So I am kind of confused about this whole thing. Maybe someone can set the record. If I have an Xbox One and Xbox live, do I get free Sunday ticket? I mean if I get Free Sunday Ticket, I will get and Xbox One just for that. It will pay for itself in two seasons.
The hate on the Xbox is getting fucking out-of-control now. People aren't even thinking about it - its just instinctual "I HATE IT. BAD. GRRR".
There's nothing wrong with doing something to cater to your main/home market.
I just kinda want to know more about what this partnership actually gets Xbox One owners. If the biggest feature is just fantasy football tracking, *then* I'd say its a waste of money.
There's nothing wrong with doing something to cater to your main/home market.
I just kinda want to know more about what this partnership actually gets Xbox One owners. If the biggest feature is just fantasy football tracking, *then* I'd say its a waste of money.
MikeE21286
Member
That seems insane.
I mean my thoughts is that it will be nothing more than small little pieces of content. I can't imagine it being substantial.
It seems more like a play on "we have the NFL as a partner" (like lots of XBL services) rather than delivering truly meaningful content.
I mean my thoughts is that it will be nothing more than small little pieces of content. I can't imagine it being substantial.
It seems more like a play on "we have the NFL as a partner" (like lots of XBL services) rather than delivering truly meaningful content.
maybe its something like sony's stadium tech in Europe? Where you get all the extra info on your phone/tablet when on game? Plus at home?
Hardly seems interesting enough for XO, but if they make it exclusive to their tablets and phones, they might see uptick of sales for those...
LyleLanley
Banned
http://www.nfl.com/news/story/0ap10...hance-interactive-television-viewing-of-games
It looks like to start it'll be fantasy football tracking and the sort, but more importantly for Microsoft eventually NFL games will be filled with Windows 8 tablets and Microsoft branding.
Opus Angelorum
Member
According to various research, Pro Football is watched by 50%+ of Americans.
I'd say $400m is cheap.
And just because I don't watch it, does not make it a bad financial decision. And do people think Microsoft are not spending any money for other regions?
I'd say $400m is cheap.
And just because I don't watch it, does not make it a bad financial decision. And do people think Microsoft are not spending any money for other regions?
Guess that's why Roger the Creep felt compelled to sit for an interview.
I think it was just fantasy football info that pops onto your sidebar.
P.S. If you want free 2013 Sunday Ticket (on your tablet, phone, or PC), it seems like that's included in the 99.99 Special Edition of Madden 25 (only at Amazon and limited to 50,000 each for PS3 and 360). There are three options. The first two involve Direct TV, but according to the Slickdeals thread, the third option is going to make Sunday Ticket available on your PC or tablet (not consoles) and doesn't involve Directv.
I think it was just fantasy football info that pops onto your sidebar.
P.S. If you want free 2013 Sunday Ticket (on your tablet, phone, or PC), it seems like that's included in the 99.99 Special Edition of Madden 25 (only at Amazon and limited to 50,000 each for PS3 and 360). There are three options. The first two involve Direct TV, but according to the Slickdeals thread, the third option is going to make Sunday Ticket available on your PC or tablet (not consoles) and doesn't involve Directv.
I guess it depends on them making a deal with Directv, or if the Sony deal with them is exclusive. Directv has the exclusive rights to Sunday Ticket for at least one or two seasons more, so I would assume if Microsoft doesn't work something out you could only watch the prime time games on cable channels (ESPN, NFL Network) or on local channels.
NFL.com fantasy is the worst btw lol. ESPN and Yahoo are far superior.
CaptainTiptop
Member
That's a whole lot of money to win over just one country and a very small niche everywhere else.
Opus Angelorum
Member
You think it's a coincidence that the US is Microsoft's biggest market (Xbox 360 sales)?
Well, if it ends up being 100% confirmed that the One will require an internet connection every 24 hours, and that you have to pay full price to play preowned games, then this deal means there's $400 million less they can use to secure exclusives for that business model. So I'm pleased, in a way.
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