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NFL Launches YouTube Channel Through Multiyear Deal With Split-Revenue Payout

The NFL has launched its own YouTube channel after years of negotiations in a deal that includes in-game highlights and NFL promotions on Google search pages. NFL Senior VP/Media Strategy, Business Development & Sales Hans Schroeder said, “This has been a long time in the making. We’ve been in talks for a long time.” The multiyear deal will have YouTube sell the advertising. It will give the league a guaranteed payment, then the two will split the revenue. The service, which already is up and running, will make a limited number of in-game highlights available, numbering in the low single digits per game. An interesting part of the deal will be the amount of promotion the NFL gets. Each of the highlight clips will have a link alerting viewers to where they can watch that game in the local market. It also will promote NFL products, Schroeder said. The NFL will get a lot of promotion on Google search pages, as well. Under details of the deal, when someone searches an NFL term, a box at the top of the first search page will feature highlights and links. “We know our fans are using two screens at the same time.” Schroeder said. The NFL last month signed a Facebook deal to share video highlights; in September ‘13, it signed a similar deal with Twitter. In those deals, the NFL has learned that television tune-in is helped when it makes highlights available more broadly. “We are looking to drive as much engagement as we can,” Schroeder said. The NFL’s recent TV agreements allowed the league to keep broader digital rights to make this deal happen, Schroeder said. The YouTube channel, which will be available via PCs, tablets and mobile phones, will have the “Best of NFL Media” programming, Schroeder said. That includes game previews and recaps, news and analysis, and fantasy advice from NFL Network and NFL.com. “We wanted to get the right deal,” Schroeder said. “YouTube is deepening its interest in licensing content” (John Ourand, Staff Writer).

PROGRAMMING EXPECTED ON DAILY BASIS: The WALL STREET JOURNAL's Mike Shields cites a source as saying that Google has agreed "to pay the NFL a 'multimillion dollar' sum annually for the rights to host the NFL channel." Schroeder said that the league "plans to actively program the YouTube channel on a daily basis," and game clips will be added to it "throughout the season," beginning with Super Bowl XLIX. It will not feature "archival footage" (WALL STREET JOURNAL, 1/26). The AP's Dave Campbell notes highlight packages "from the current postseason were already viewable Sunday, and plenty of Super Bowl programming was scheduled to appear throughout the week and after the game" (AP, 1/26). RECODE's Peter Kafka noted the deal "isn't surprising" since YouTube has deals with MLB, the NBA and NHL. He wrote it is "fascinating that Google is striking commercial deals about the stuff it shows in its search results, as opposed to straight-up ads." Kafka: "But I have yet to hear anyone carp about it. And there's certainly a logical rationale for working with the one source that has the rights to provide the information searchers want. Still, it's a long way from basic blue links" (RECODE.net, 1/25).

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