Bank of America’s Jessica Reif Ehrlich, National Research Group’s Jay Kaufman and the highs and lows of CFP National Championship game viewership
Jan 23, 2025
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Jessica Reif Ehrlich, Managing Director of Media and Entertainment at Bank of America, offers insights into Wall Street's view on sports media. Jay Kaufman, EVP at the National Research Group, discusses the evolving dynamics of viewer engagement and media consumption. They delve into surprising CFP National Championship viewership numbers and what these trends mean for future tournaments. The conversation also covers how Netflix is reshaping sports broadcasting and the implications of emerging streaming platforms on traditional media.
The CFP National Championship game faced significant viewership decline due to factors like timing and audience fatigue from an extended playoff system.
Netflix's growing investment in live sports, including high-profile events, is showing promise in retaining subscribers and enhancing their sports strategy.
The shift toward streaming among younger sports fans highlights the need for media companies to adapt content delivery and accessibility strategies to maintain engagement.
Deep dives
College Football Playoff Ratings and Implications
The college football playoff national championship game saw 22.1 million viewers, marking it as the third lowest viewership in the CFP era. This number raised discussions about potential factors contributing to the decline, including the timing of the game, the audience fatigue from an extended playoff system that expanded from four to twelve teams, and the impact of external events like a national inauguration. Ohio State's win brings up questions surrounding the effectiveness of the current playoff format and whether adjustments are needed to enhance viewer engagement. Media experts are considering options for improving audience numbers in future seasons, such as starting the season earlier or further expanding the playoff format.
Decline in NFL Playoff Viewership
The NFL Divisional Weekend attracted just over 37 million viewers on average, the lowest figure for this playoff round since 2021. Despite these numbers being high in comparison to other sports, the decrease from last year's record draws attention to a potential trend of declining interest in certain matchups, specifically citing the low audience for games like Commanders vs. Lions. Although there remains optimism for upcoming matchups such as Chiefs vs. Bills to draw larger audiences, questions are arising about the overall trajectory of NFL viewership. Analysts argue the need for networks to adapt strategies to maintain engagement as competition rises.
Netflix's Sports Strategy and Viewer Engagement
Netflix's recent success in retaining subscribers during its fourth quarter is partially credited to its sports offerings, including major events like Christmas Day NFL games. The company's move into live sports has evolved, showing substantial positive viewer feedback compared to previous events that faced technical issues, such as the Jake Paul-Mike Tyson fight. Analysts believe that with their upcoming FIFA Women's World Cup rights and the potential for other high-profile sports content, Netflix is poised to enhance its sports strategy further. Despite initial hesitance from the company toward sports rentals, the demand and engagement from audiences indicate a growing opportunity.
Changing Media Consumption Habits Among Sports Fans
The dynamics of how sports fans consume content are rapidly shifting, with significant growth in streaming platforms such as Prime Video, Peacock, and YouTube TV, particularly among younger demographics. While linear television still dominates for older fans, studies show that younger fans are increasingly reliant on streaming for sports, with a marked decrease in traditional TV viewership. Additionally, piracy among younger viewers is concerning as many opt for unauthorized streams, driven by the growing number of platforms required to access live sports. As media companies adapt to these trends, finding a balance between accessibility and quality will be crucial to retaining audience interest.
The Role of Sports in Society and Viewer Commitment
Sports play a vital role in society, providing entertainment, escapism, and a common ground for conversation among fans. Studies show that a substantial majority of sports fans find watching sports improves their emotional well-being, even amid larger societal challenges. Despite economic pressures, fans are less likely to cut back on spending related to sports, indicating its importance in their lives. Moreover, a significant portion of fans states that sports content influences their subscription decisions for services, emphasizing that the appeal of live sports remains a significant factor in the competition among content providers.
On this week’s pod, co-hosts Austin Karp and Mollie Cahillane look into the CFP National Championship game’s surprising numbers and what may be next for the expanded tournament. The duo is then joined by Bank of America’s lead media analyst Jessica Reif Ehrlich to talk about how Wall Street is seeing Netflix’s place in the sports landscape and how ESPN’s Flagship project fits in. Later in the show, Jay Kaufman of NRG drops in to provide deep insight into sports media consumption data and patterns.
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