In the past, Hollywood dealmakers and stockbrokers wondered whether another studio or streamer would catch Netflix. Its dominance stemmed from being a first-mover and not having a serious competitor until Amazon and Disney ten or more years after their launch. However, Netflix would eventually have to compete for content, original and licensed, other platforms that offered less expansive ad-based options, and additional content like live sports or a very popular series or movie premiere.
Arguably, the pandemic accelerated the move to digital and it allowed competitors to gain subscribers because people were spending more time at home. More subscribers and additional streaming options for consumers has not caused Netflix to faulter, but it has caused Netflix to rethink its sports strategy. For years, Netflix was dead set again streaming live sports because of their cost and commercials—Netflix does not have advertisements on its platform currently.
Netflix’s popular Drive to Survive docuseries about the Formula 1 (or “F1”) racing circuit, which was renewed for a fourth season, and the Michael Jordan/Chicago Bulls The Last Dance represents a golden era and renaissance of sports documentaries. As much as fans of feature films and television series enjoy learning about actors during and off camera they similarly want to know about sports stars, their coaches, and franchises. In other words, the business of sports is booming in valuation and behind-the-scenes content.
Recently, Netflix CEO Reed Hastings stated that the popularity of Drive to Survive has caused the company to rethink its stance on purchasing live sports content. The broadcast and streaming rights to Formula 1 will become available via ESPN and Sky Sports in 2022 and 2024. Netflix, will have some competition to secure F1 rights, which will drive up the cost. It was also reported by Front Office Sports that the Netflix CEO would require a level of exclusivity for sports rights that other platforms do not normally require. The exclusivity is likely required because Netflix will want to justify the purchase price and to keep-in-line with what Netflix customers expect—exclusive content on the platform.
With Premier League club Manchester United looking to secure a broadcast deal for selling its rights outside of the traditional league format, it might be the perfect acquisition for Netflix. An exclusive team vs. an entire league would also be less expensive and more targeted. One aspect of uncertainty for all streamers is their subscribers overseas, particularly in untapped China. The international market is far from settled or established. Netflix also has a large operation in India so possibly cricket via the Indian Premier League (“IPL”) could be a rights purchase to consider.
In 2018, the original content on Netflix only accounted for 8%. This means that 92% of the content on the platform just a few years ago was all owned (at least partially) by someone else. That statistic has changed because Disney+, Paramount+, Peacock, HBO Max, Apple+, and many others have since been created and stocked or restocked with content. Controlling interest in Hulu was even purchased from FOX by Disney. Disney and Amazon now both rival Netflix in terms of subscribers. Netflix will shrewdly need to continue to rethink its strategy because its first-mover advantage and long-time industry leading dominance is no longer guaranteed.
As Comcast-owned NBCUniversal CEO Brian Roberts recently said, purchasing sports rights can be difficult. Sports rights are expensive. Exclusive sports rights are even more expensive. Sports rights only become available every five to ten years. Networks and streamers are highly competitive to secure those rights with the hope of landing viewers, subscribers, and advertising dollars.
Will Netflix get into sports rights bidding? In the past, the digital entertainment giant has been steadfast is its non-sports approach. However, the market has changed and is flooded with more competitors now. Netflix has to change to meet its customer and the market needs.
Formula 1 presents an interesting scenario for Netflix as a buyer and partner. F1 is a popular league internationally and growing in the United States. Two new F1 races in Miami, Florida, and Austin, Texas, in addition to season four of the Drive to Survive Netflix series are sure to drive traffic, pun intended, and interest in the racing sport.
Formula 1 is a sports league that will cost less to purchase streaming rights than a traditional American “Big 4” like the NBA, NFL, or MLB. Formula 1’s structure is also centered at the top so it would be easier to make an exclusive deal that Netflix seeks. The remaining questions being, will Netflix pursue Formula 1 sports rights to increase its streaming platform subscribers and compete with others? Second, will Netflix be the first to offer commercial free live sports programming—for a premium price—or offer in-screen ads and additional during-break inside looks, content, and analysis? Or will Netflix act more like a traditional broadcaster and offer advertisements to pay down its purchase price? One will know more after a few laps around the sun.
Being Wrong On-Air Isn’t A Bad Thing
…if you feel yourself getting uncomfortable over the fact that you were wrong, stop to realize that’s your pride talking. Your ego. And if people call you out for being wrong, it’s actually a good sign.
In the press conference after the Warriors won their fourth NBA title in eight years, Steph Curry referenced a very specific gesture from a very specific episode of Get Up that aired in August 2021.
“Clearly remember some experts and talking heads putting up the big zero,” Curry said, then holding up a hollowed fist to one eye, looking through it as if it were a telescope.
“How many championships we would have going forward because of everything we went through.”
Yep, Kendrick Perkins and Domonique Foxworth each predicted the Warriors wouldn’t win a single title over the course of the four-year extension Curry had just signed. The Warriors won the NBA title and guess what? Curry gets to gloat.
The funny part to me was the people who felt Perkins or Foxworth should be mad or embarrassed. Why? Because they were wrong?
That’s part of the game. If you’re a host or analyst who is never wrong in a prediction, it’s more likely that you’re excruciatingly boring than exceedingly smart. Being wrong is not necessarily fun, but it’s not a bad thing in this business.
You shouldn’t try to be wrong, but you shouldn’t be afraid of it, either. And if you are wrong, own it. Hold your L as I’ve heard the kids say. Don’t try to minimize it or explain it or try to point out how many other people are wrong, too. Do what Kendrick Perkins did on Get Up the day after the Warriors won the title.
“When they go on to win it, guess what?” He said, sitting next to Mike Greenberg. “You have to eat that.”
Do not do what Perkins did later that morning on First Take.
Perkins: “I come on here and it’s cool, right? Y’all can pull up Perk receipts and things to that nature. And then you give other people a pass like J-Will.”
Jason Williams: “I don’t get passes on this show.”
Perkins: “You had to, you had a receipt, too, because me and you both picked the Memphis Grizzlies to beat the Golden State Warriors, but I’m OK with that. I’m OK with that. Go ahead Stephen A. I know you’re about to have fun and do your thing. Go ahead.”
Stephen A. Smith: “First of all, I’m going to get serious for a second with the both of you, especially you, Perk, and I want to tell you something right now. Let me throw myself on Front Street, we can sit up there and make fun of me. You know how many damn Finals predictions I got wrong? I don’t give a damn. I mean, I got a whole bunch of them wrong. Ain’t no reason to come on the air and defend yourself. Perk, listen man. You were wrong. And we making fun, and Steph Curry making fun of you. You laugh at that my brother. He got you today. That’s all. He got you today.”
It’s absolutely great advice, and if you feel yourself getting uncomfortable over the fact that you were wrong, stop to realize that’s your pride talking. Your ego. And if people call you out for being wrong, it’s actually a good sign. It means they’re not just listening, but holding on to what you say. You matter. Don’t ruin that by getting defensive and testy.
WORTH EVERY PENNY
I did a double-take when I saw Chris Russo’s list of the greatest QB-TE combinations ever on Wednesday and this was before I ever got to Tom Brady-to-Rob Gronkowski listed at No. 5. It was actually No. 4 that stopped me cold: Starr-Kramer.
My first thought: Jerry Kramer didn’t play tight end.
My second thought: I must be unaware of this really good tight end from the Lombardi-era Packers.
After further review, I don’t think that’s necessarily true, either. Ron Kramer did play for the Lombardi-era Packers, and he was a good player. He caught 14 scoring passes in a three-year stretch where he really mattered, but he failed to catch a single touchdown pass in six of the 10 NFL seasons he played. He was named first-team All-Pro once and finished his career with 229 receptions.
Now this is not the only reason that this is an absolutely terrible list. It is the most egregious, however. Bart Starr and Kramer are not among the 25 top QB-TE combinations in NFL history let alone the top five. And if you’re to believe Russo’s list, eighty percent of the top tandems played in the NFL in the 30-year window from 1958 to 1987 with only one tandem from the past 30 years meriting inclusion when this is the era in which tight end production has steadily climbed.
Then I found out that Russo is making $10,000 per appearance on “First Take.”
My first thought: You don’t have to pay that much to get a 60-something white guy to grossly exaggerate how great stuff used to be.
My second thought: That might be the best $10,000 ESPN has ever spent.
Once a week, Russo comes on and draws a reaction out of a younger demographic by playing a good-natured version of Dana Carvey’s Grumpy Old Man. Russo groans to JJ Redick about the lack of fundamental basketball skills in today’s game or he proclaims the majesty of a tight end-quarterback pairing that was among the top five in its decade, but doesn’t sniff the top five of all-time.
And guess what? It works. Redick rolls his eyes, asks Russo which game he’s watching, and on Wednesday he got me to spend a good 25 minutes looking up statistics for some Packers tight end I’d never heard of. Not satisfied with that, I then moved on to determine Russo’s biggest omission from the list, which I’ve concluded is Philip Rivers and Antonio Gates, who connected for 89 touchdowns over 15 seasons, which is only 73 more touchdowns than Kramer scored in his career. John Elway and Shannon Sharpe should be on there, too.
Money Isn’t The Key Reason Why Sellers Sell Sports Radio
I started selling sports radio because I enjoyed working with clients who loved sports, our station, and wanted to reach fans with our commercials and promotions.
A radio salesperson’s value being purely tied to money is overrated to me. Our managers all believe that our main motivation for selling radio is to make more money. They see no problem in asking us to sell more in various ways because it increases our paycheck. We are offered more money to sell digital, NTR, to sell another station in the cluster, weekend remotes, new direct business, or via the phone in 8 hours.
But is that why you sell sports radio?
In 2022, the Top 10 highest paying sales jobs are all in technology. Not a media company among them. You could argue that if it were all about making money, we should quit and work in tech. Famous bank robber Willie Sutton was asked why he robbed twenty banks over twenty years. He reportedly said,” that’s where the money is”. Sutton is the classic example of a person who wanted what money could provide and was willing to do whatever it took to get it, BUT he also admitted he liked robbing banks and felt alive. So, Sutton didn’t do it just for the money.
A salesperson’s relationship with money and prestige is also at the center of the play Death of a Salesman. Willy Loman is an aging and failing salesman who decides he is worth more dead than alive and kills himself in an auto accident giving his family the death benefit from his life insurance policy. Loman wasn’t working for the money. He wanted the prestige of what money could buy for himself and his family.
Recently, I met a woman who spent twelve years selling radio from 1999-2011. I asked her why she left her senior sales job. She said she didn’t like the changes in the industry. Consolidation was at its peak, and most salespeople were asked to do more with less help. She described her radio sales job as one with “golden handcuffs”. The station paid her too much money to quit even though she hated the job. She finally quit. The job wasn’t worth the money to her.
I started selling sports radio because I enjoyed working with clients who loved sports, our station, and wanted to reach fans with our commercials and promotions. I never wanted to sell anything else and specifically enjoyed selling programming centered around reaching fans of Boise State University football. That’s it. Very similar to what Mark Glynn and his KJR staff experience when selling Kraken hockey and Huskies football.
I never thought selling sports radio was the best way to make money. I just enjoyed the way I could make money. I focused on the process and what I enjoyed about the position—the freedom to come and go and set my schedule for the most part. I concentrated on annual contracts and clients who wanted to run radio commercials over the air to get more traffic and build their brand.
Most of my clients were local direct and listened to the station. Some other sales initiatives had steep learning curves, were one-day events or contracted out shaky support staff. In other words, the money didn’t motivate me enough. How I spent my time was more important.
So, if you are in management, maybe consider why your sales staff is working at the station. Because to me, they’d be robbing banks if it were all about making lots of money.
Media Noise: BSM Podcast Network Round Table
Demetri Ravanos welcomes the two newest members of the BSM Podcast Network to the show. Brady Farkas and Stephen Strom join for a roundtable discussion that includes the new media, Sage Steele and Roger Goodell telling Congress that Dave Portnoy isn’t banned from NFL events.