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DirecTV and Sony are hooking up to deliver streaming NFL content from their “Sunday Ticket” package to subscribers and non-subscribers using web-enabled PlayStation 3 gaming consoles.
The initiative is said to be a “test” to determine the marketability of NFL games on a range of web-enabled platforms, says senior director of sports marketing and product strategy at DirecTV Alex Kaplan. DirecTV is the largest satellite provider in the US, and the new partnership will Sony will allow PS3 users to stream up to 14 games every Sunday. Kaplan said the joint venture was a way for the company to dip their toes in the streaming content pool before expanding access:
“If this test is successful, we have the opportunity to distribute ‘Sunday Ticket’ through various different devices, and we’re certainly open to relationships with other consoles and Internet-connected devices.”
Kaplan admits that the streaming NFL content is aimed at non-subscribers- potential customers that are unable to use DirecTV. At $340 a season, the content isn’t cheap, but it marks the first time DirecTV has released NFL content for non-subscribers to watch on web-connected HD TVs. Kaplan commented on the initiative’s target customer:
“This product is designed for people who cannot get DirecTV… We’re trying to maximize value for Sunday Ticket in a world where how people consume media is changing, and we want to be at the forefront of that.”
Kaplan admitted that the PS3 partnership could “cannibalize” DirecTV’s subscriber base, and as such, the company is capping the number of available subscriptions while the impact of the offering is assessed. But the exec also believes that even if NFL streaming for PS3 leads to some revenue loss, it could benefit DirecTV down the road:
“There are real revenue opportunities here from non- DirecTV customers, and while they won’t sign up for DirecTV right away, ultimately these people could move to the suburbs, and we’ll have a relationship with them that could lead to a conversion to DirecTV.”
DirecTV’s “Sunday Ticket to Go” service was launched for mobile in 2008, and the company expects to rake in $1 billion in revenue from the service in 2011.
