jmt57
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NFL is looking long-term giving this game away for free
Why would the NFL offer the game for free? Two reasons. First, to squash any of the anti-trust talk and getting the government involved in their private business. Second, they are looking at long term profits of next year and years after that, rather than the short term profits of one game.
The NFL and the cable companies have each been trying to make themselves look like saints and the other side as greedy during these negotiations. Comcast, Time-Warner, and all the other cable companies that don't offer the NFLN now look like the bad guys and may be embarassed into adding the NFLN to their basic package. Millions of viewers are now exposed to the NFLN and many will either try to pressure those cable companies to add NFLN or switch to DirecTV or a competing cable company. The only downside is the pompous, arrogant Gumble broadcasting the game.
The NFL can easily afford to take the hit from the lack of revenue of one game - I'm sure they'll end up paying WCVB and WWOR most if not all their rights fees back - in exchange for the revenue stream they'll get with the NFLN on everybody's basic cable package going forward. It's a smart move by the NFL, one of the best marketed products in any industry in the U.S.
To look at it another way, it's like McDonald's selling a hamburger at price where they make no money, but know they'll more than make it up when the customer buys fries and a drink. Watch, we'll see the NFLN in almost every cable lineup nationwide next season.
Why would the NFL offer the game for free? Two reasons. First, to squash any of the anti-trust talk and getting the government involved in their private business. Second, they are looking at long term profits of next year and years after that, rather than the short term profits of one game.
The NFL and the cable companies have each been trying to make themselves look like saints and the other side as greedy during these negotiations. Comcast, Time-Warner, and all the other cable companies that don't offer the NFLN now look like the bad guys and may be embarassed into adding the NFLN to their basic package. Millions of viewers are now exposed to the NFLN and many will either try to pressure those cable companies to add NFLN or switch to DirecTV or a competing cable company. The only downside is the pompous, arrogant Gumble broadcasting the game.
The NFL can easily afford to take the hit from the lack of revenue of one game - I'm sure they'll end up paying WCVB and WWOR most if not all their rights fees back - in exchange for the revenue stream they'll get with the NFLN on everybody's basic cable package going forward. It's a smart move by the NFL, one of the best marketed products in any industry in the U.S.
To look at it another way, it's like McDonald's selling a hamburger at price where they make no money, but know they'll more than make it up when the customer buys fries and a drink. Watch, we'll see the NFLN in almost every cable lineup nationwide next season.
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