John Ourand, a seasoned journalist covering the sports business, joins to discuss the NFL's impressive Super Bowl ratings, even with a lackluster game. He analyzes ESPN's potential acquisition of NFL's media assets and why they're pursuing more traditional assets despite declining values. The conversation also touches on the allure of celebrity culture, evident in Tom Brady's extravagant watch, and highlights evolving viewing habits and strategies in the competitive landscape of sports media.
The Super Bowl's record 126 million viewers were influenced by innovative streaming strategies, Spanish language rights sales, and Nielsen's updated audience counting methods.
ESPN's potential acquisition of NFL media assets aims to boost its programming amid declining traditional media, despite significant valuation challenges.
Deep dives
Record Super Bowl Viewership
The Super Bowl set a remarkable record with 126 million viewers, an achievement attributed to three main factors despite the game's lackluster excitement. Fox's first-time streaming of the event on Tubi significantly contributed to the record, as streaming audiences continue to grow annually. Additionally, Fox's strategic sale of Spanish language rights to NBC allowed multiple channels, including Fox de Portes, to broadcast the game, likely increasing viewership within the Spanish-speaking demographic. Finally, a change in Nielsen's counting of out-of-home audiences boosted the ratings, illustrating how adjustments in reporting methods can amplify viewer numbers for major televised events.
ESPN's Interest in NFL Media Assets
ESPN is exploring the potential acquisition of valuable NFL media assets, including the NFL Network, Red Zone, and NFL.com, which could enhance their programming portfolio as they launch a direct-to-consumer service. The need to adapt to a shifting television landscape, driven by cord-cutting trends, makes these assets appealing despite their association with declining traditional media channels. The NFL's fantasy business and archive of NFL films are also part of the deal, providing ESPN with diverse content to attract viewers and potentially increase subscription numbers. Discussions have included the NFL possibly taking a minor stake in ESPN, indicating a deeper partnership strategy between the two organizations.
Challenges and Opportunities for ESPN
While acquiring NFL media assets could strengthen ESPN’s market position, challenges remain regarding the valuation and interest level in these properties. The NFL has sought buyers for these assets since 2021, yet no substantial offers have materialized, leading to questions about whether the asking price is overly ambitious. ESPN sees the value in integrating NFL content into their upcoming streaming platform but must weigh the potential subscriber growth against the financial risk of investing in a fading traditional media landscape. Any deal could reshape ESPN's offerings, especially if they can synergize NFL content with their fantasy leagues, enhancing the overall viewer engagement.
John Ourand joins Peter to break down a Super Bowl ratings bonanza for the NFL and Fox, despite a largely underwhelming game. Then he assesses a prospective deal in which ESPN buys the NFL’s media assets (NFL Network, NFL RedZone, etcetera) and explains why ESPN would even be interested in adding more declining linear assets to their TV portfolio.