Google-parent Alphabet has won the rights to stream NFL Sunday Ticket games on its YouTube TV service, beating out Apple. Google stock fell amid reports estimating that YouTube will pay in a range of $2 billion to $2.5 billion annually for the rights.
Google now assumes the helm for airing all daytime NFL Sunday games — the bulk of the league's schedule — from satellite TV broadcaster DirecTV beginning with the 2023 season.
While most reports said Google will pay $2 billion annually for the NFL Sunday Ticket rights, the New York Times put the figure higher, at $2.5 billion.
Under its multiyear deal, DirecTV paid the NFL $1.5 billion each year. The YouTube streaming deal starts with the Fall 2023 season.
"In contrast to the current distribution on DirecTV, the service will be offered outside of a traditional pay TV package for the first time," Cowen analyst John Blackledge said in a note to clients.
Stand-Alone NFL Sunday Ticket Offering
YouTube TV's basic internet bundle of broadcast and cable networks costs $64.99 monthly. The NFL Sunday Ticket package will be offered as an add-on service to consumers. YouTube TV has about 5 million subscribers.
However, Google says NFL Sunday Ticket will also be available as a standalone a-la-carte offering.
"The a-la-carte offering could dramatically increase Sunday Ticket penetration," added Blackledge. "Any household who accesses YouTube could potentially sign up, whether or not they are subscribers to a traditional pay TV bundle. In the past, uptake of Sunday Ticket was limited to DirecTV subscribers only."
The seven-year deal marks Google's biggest push into the sports market. Amazon.com streams NFL Thursday night games.
Google Stock Drops Along With Market
Google stock fell 2% to close at 87.76 on the stock market today, as the broad market stumbled Thursday.
Apple in early 2022 won rights to Major League Baseball games on Friday nights. Apple reportedly dropped out of the bidding for NFL Sunday Ticket game.
Google's Relative Strength Rating stock is only 22 out of a best possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Meanwhile, Google stock has retreated 39% in 2022 amid the bear market in technology stocks.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
