The NFL is one of the most beloved sports in the United States. Every year, millions of fans attend games, watch weekly matchups, and spend money on the sport they love. Find out how three companies are taking advantage of America’s love for this great sports pastime.
Verizon Communications Inc. (NYSE:VZ)
Verizon Communications Inc. (NYSE:VZ) recently renewed its contract with the NFL to offer exclusive content. Verizon Communications Inc. (NYSE:VZ) paid a reported $1 billion for a four-year renewal. The deal between Verizon Communications Inc. (NYSE:VZ) and the NFL gives Verizon Communications Inc. (NYSE:VZ) subscribers every NFL game available via NFL Mobile on their Verizon Communications Inc. (NYSE:VZ) phones. Verizon’s original deal, signed in 2010, was a four year $720 million contract with the NFL.
The renewal includes NFL Playoff games and the Super Bowl. In the old deals these games were not included. The new deal also includes all local games. Previously, customers could only pick from a selection of games. All games played, including Thursday night, Sunday night, and Monday Night Football will be available to Verizon subscribers.
The deal with the NFL is financially important for Verizon. While the $1 billion purchase could be enough if it helps take away subscribers from rival telecom companies, it can help the company’s revenue. The NFL package is available to Verizon subscribers for $5 a month.
Data usage will skyrocket as customers watch NFL games, and this could lead to many customers going over data caps and having to pay high fees for used data. Verizon is also hoping to integrate strong advertisements into NFL Mobile, which will greatly impact advertising.
Microsoft Corporation (NASDAQ:MSFT)
At its official unveiling of its new console, Xbox One, Microsoft Corporation (NASDAQ:MSFT) showed off exclusive content to set its console apart from Sony’s Playstation 4. Among the highlights was exclusive content from the National Football League through a new partnership. The new deal between Microsoft Corporation (NASDAQ:MSFT) and the NFL is rumored to be worth $400 million over a five-year period.
The new Xbox One will give users a more personalized gaming experience with NFL content, movie streaming, Blu-Ray disc playing, Skype integration, and voice control. Each console will also come with built in Kinect technology. Xbox One users will be able to Skype other NFL fans during games, watch multiple screens of games, and see their fantasy football statistics in front of them. The deal between Microsoft Corporation (NASDAQ:MSFT) and the NFL also brings Surface tablets to the sidelines. Coaches will have access to these tablets to make plays and watch replays.