META Meta Platforms Inc

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 11, 2017 02:47 ET (07:47 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.