The NFLs Digital Media Strategy - Essay Example

? The NFL’s Digital Media Strategy THE NFL’S DIGITAL MEDIA STRATEGY Introduction Almost nine decades after the founding of the NFL, the sport has not been more popular as it is now. Television revenue, viewership and attendance, are either near or at all-time highs with the strength of the sport as a global brand never having been greater. While it is true that the players do seem to be getting more exciting and better with the games more spectacular and the presentation much slicker, this is only but one side of the NFL’s success. The other side of the NFL’s success lies behind the scenes with tactics, strategies and programs, which the NFL has followed in diligent, careful and ambitious stewardship of the NFL league. As a league, it is more than a collection of owners, coaches, players and franchises. The NFL also produces some of entertainments most sought after content. The leagues ambitious programming and broadcasting plans now require the flexibility to allow it distribute this content via new programs, channels, and ventures. In order to improve on the ability to capitalize on these new opportunities in the media, the NFL needs to re-invent its processes and systems to allow for increased monetization of its wireless broadcasts of content. Goals of the organization Like most successful entertainment and media companies, the NFL seeks to haul out as much value as it can from the assets it has in media. The core of this media content includes audio and video clips, which NFL, an affiliated media company films maintains and establishes (Hutchins & Rowe, 2012). NFL films acts as the NFLs most important channel for promotion. Operating out of New Jersey, the company produces such television programs as State Farm NFL match-up and Playbook. These programs represent the face of the NFL and, as such, the richness and quality of the content has to be just right. The NFL aims to gain several benefits from pursuing a digital content strategy. These are; more compelling and robust video content to be broadcast on wireless channels, improved ability to benefit from digital content partnerships and new media opportunities, strengthening of their brand on a global level, and improved ability to monetize and leverage the underlying value of its brand on a global level (Hutchins & Rowe, 2012). Options Available There are several options open to the NFL n their pursuit of a lucrative digital content strategy. First, they could pursue an exclusive partnership with a wireless carrier, just like its current deal with Sprint. Second, they could form non-exclusive partnerships with an array of wireless carriers that would give them the right to carry their content on their phones but with no exclusive rights to the content. Third, they could include the rights to wireless content with one or more TV networks. This would involve showing live and full games or highlights in progress, as well as rights to NFL film’s live videos. Selection of Best Option including Analysis and Information Supporting the Decision The best option for the NFL would be to include wireless rights in partnerships with existing or new broadcast partners. This would work to achieve the double-digit growth anticipated by the bosses at the NFL because, with the deals for television broadcasts, up for renewal in the 2013 season, the mobile rights to NFL content would be of very high value to the TV broadcasters. Some of the networks, like ESPN, already have ESPN mobile, which offers to steam video, as well as other NFL content that could significantly enhance the NFL product. Even though, DirecTV already has the rights to wireless content meaning that any new deal would not give exclusive rights to the other TV networks, the networks would be willing to work with this given the demand for digital content by the consumer. They would still make a lot of money from non-exclusive deals by offering digital content to their clients (IBM, 2012). The communication industry is in the middle of a revolution known as convergence. Convergence is a trend via which various aspects of telecommunication, broadcasting and computing are brought together into one digital bit-stream (IBM 2012). Convergence services, for example, Mobile TV and IP-TV, are expected to replace the existing technologies and provide a threat for the service providers currently in service. Convergence based on IP technology is inevitable, and the result will be new services and demand in the market, which will have high monetary value. These advances in multi-media standards and technology are going to enable the distribution and viewing of rich media content through practically any type of medium or device (IBM 2012). Given the demand for digital content is on the rise, owners of premium content like the NFL will have the opportunity to distribute their rich content, for example, video game clips, via wireless cables and other types of providers. With the fans’ need to view game clips whenever and wherever, a digital content strategy that aims to take advantage of an inevitable convergence between broadcast technology, mobile technology and computing should be the priority (IBM 2012). Therefore, any deal to distribute digital content should be in conjunction with TV networks, especially those with mobile services. Selling the Decision to NFL Owners With ambitious growth in monetary in-flows on its agenda, the NFL could not have chosen a better time to leverage its rich digital content and put in place capability of a first-rate content management program. By extending the NFL business model to being a content outlet compared to being a content source, the NFL will be faced with numerous challenges, especially on how to provide rich and large amounts of relevant and targeted content, which will enrich the broadcast of NFL content and meet the viewers’ high expectations (Jozsa & Maxymuk, 2010). TV networks, now working on the infrastructure required to integrate telecommunications, broadcast technology, and computing will eventually require high quality digital audio and video content. This is because they have highly invested resources into this technology and, coupled to the high demand for digital content among consumers they will be willing to pay top dollar for it. The NFL, with its new super-efficient access of football content will be in an excellent position of leveraging this content and deliver it, which will only further the NFL brand and lead to demand for more content (Jozsa & Maxymuk, 2010). The NFLs investment in the digital platform in collaboration with TV networks will be critical to the continued growth of the NFL brand, especially as the new broadcast deals are up for renewal. From the addition of new channels to new partnerships with related media and content companies, this deal will be significant NFL’s success and a key enabler in the integration of new technologies down the road (Jozsa & Maxymuk, 2010). The new digital media solutions will place the NFL in a great space to leverage and capitalize on a wide range of content opportunities. It will give the NFL the means to distribute and produce additional robust content, allowing it to do this more efficiently. This supports the NFL brand, as well as its mission. Digital media are of very high value to the NFL, especially given the sharing of digital media through social media and other internet based media (Horrow & Swatek, 2011). The NFL, just like any other team sport, is a natural fit for interactive digital media, especially since fans will always have something to band and rally around. With tens of millions of fans, the probability that they will want to watch highlights and re-runs of these games is very high. For example, NFL Lives Facebook page has over five million fans, which means that these fans will be willing to buy content, over the internet if it is of high quality. The value of digital media can be monetized in several ways. One is through subscription using pay-walls that may be metered, i.e. appear after a number of page-viewing/listening or presented immediately after the user is given a free trial (Horrow & Swatek, 2011). Metered pay-walls are useful when the organization wants to generate more revenue, from ads as compared to shutting out all users who do not pay immediately. Another strategy is micro-transaction that provide piece-meal access to this digital applications and content and are either pay-to-play or pay-to-own. This model is quite old, pre-dating the internet era, for example, with pay-per-view movies and arcade games. Conclusion With the high demand for NFL content and the prevalence of the digital media age, it is inevitable that the NFL will have to leverage their possession of rich and high quality content with an aim to grow revenues. The best option for the NFL would be to include wireless rights in partnerships with existing or new broadcast partners. This is especially informed by the fact that there is an expected convergence between telecommunications, broadcasting and computing onto single bit-stream devices. Given the heavy investment put into this area of technology in the past few years, it is inevitable that the TV networks will be willing to pay whatever it takes to have access to NFL content, which is one of the most sought after content on the internet in the U.S. References Hutchins, Brett. & Rowe, David. (2012). Sport Beyond Television: The Internet, Digital Media and the Rise of Networked Media Sport. Boca Raton: CRC Press. Horrow, Richard. & Swatek, Karla. (2011). Beyond the scoreboard : an insider's guide to the business of sport. Champaign : Human Kinetics. IBM. (2012). NFL tackles digital content challenges to build a foundation for growth and diversification. Innovation that matters , 1-4. Jozsa, Frank. & Maxymuk, John. (2010). Football fortunes: the business, organization, and strategy of the NFL. Jefferson: McFarland & Co. Read More