Facebook in Soccer Streaming Deal With MLS, Univision
March 10 2017 - 12:29AM
Dow Jones News
By Shalini Ramachandran and Deepa Seetharaman
Facebook Inc. is stepping up efforts to acquire rights to stream
professional sporting events, as that content becomes a key element
of its strategy to grow its video business.
The latest move: the social media giant signed a deal with Major
League Soccer and Spanish-language broadcaster Univision
Communications Inc. that gives it exclusive, English-language
rights to stream at least 22 regular-season soccer games in the
U.S. The first game will stream on March 18.
MLS will also produce more than 40 "Matchday Live" analysis
shows for Facebook that will be exclusive to the social media giant
globally. The games will appear on Univision Deportes' Facebook
page, while the live shows will stream on MLS' Facebook page.
Facebook executives are eager to bring more sports content to
the platform given its popularity among its 1.86 billion monthly
users. About 35% of Facebook's monthly user base -- or 650 million
people -- is connected to at least one sports page on the social
network. Facebook said soccer is the most-followed sport among its
users.
The company is also in talks with Major League Baseball for live
streaming rights, according to people familiar with the matter, and
it recently signed deals with World Surf League and NBA's minor
league organization. Reuters earlier reported on Facebook's talks
with MLB.
Acquiring media rights to major sporting events is challenging
because so many are tied up in long-term deals with broadcasters.
The NBA's deal with TV networks ESPN and TNT stretches until the
2024-2025 season, while NFL's pacts with ESPN, CBS, Fox and NBC run
through early next decade, for example.
But the deal with MLS and Univision is a blueprint for how
Facebook can get in the door, said Dan Reed, Facebook's head of
global sports partnerships. "We are actively working with both
broadcasters and rightsholders" about similar partnerships, Mr.
Reed said.
When Facebook showed interest in buying live soccer game rights
earlier this year, MLS said the rights were tied up in contracts
with national TV partners. MLS president of business ventures, Gary
Stevenson, had the idea to approach Univision to siphon off just
the English-language rights to Univision's MLS games and license
those to Facebook exclusively.
"This is new territory for us, it's new territory for Facebook
and new territory for Univision," Mr. Stevenson said.
Facebook is paying both MLS and Univision, though the companies
wouldn't disclose financial details. The deal only covers the 2017
season.
Facebook said it is still testing out potential ad
revenue-sharing models, such as inserting an ad break in the middle
of a live stream. The streams will include unique camera angles
optimized for mobile viewing, Facebook-specific commentators, as
well as interactive graphics and fan polls.
Univision Deportes President Juan Carlos Rodriguez said he isn't
worried about potential cannibalization of soccer viewership on
Univision's channels or online platforms. "If they were willing to
watch it in Spanish through us, they would do it," Mr. Rodriguez
said. "We see that our English-language viewers are all glued to
Facebook."
The MLS deal pits Facebook against Twitter Inc., which has
signed a raft of deals with sports leagues, including Major League
Baseball, the National Hockey League, and the National Basketball
Association. A year ago, Twitter edged out Facebook, Verizon
Communications Inc., and Amazon Inc. with a $10 million deal for
the rights to stream 10 National Football League's Thursday night
games.
Facebook has cultivated relationships with sports leagues and
teams, helping them understand the dynamics of its all-important
news feed. A few years ago, teams were urged to not post more than
twice a day to avoid being "dinged by the algorithm," said a person
familiar with the pitches. Lately, Facebook has emphasized the
importance of posting photos and videos, including live broadcasts
right on Facebook.
Facebook declined to comment on specific discussions, but Mr.
Reed said, "There are strategies that sports properties can employ
to drive a variety of outcomes, whether it's driving tune-in to
their broadcast or driving merchandise sales. We help them
understand how to use Facebook to accomplish those."
Write to Shalini Ramachandran at shalini.ramachandran@wsj.com
and Deepa Seetharaman at Deepa.Seetharaman@wsj.com
(END) Dow Jones Newswires
March 10, 2017 00:14 ET (05:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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