A month after its debut in the world of over-the-top programming, the PGA Tour says it’s satisfied with the early returns, but it wants to cut the cost of providing the previously unseen early tournament coverage.
Since launching PGATourLive.com in late July in a partnership with MLB Advanced Media, between 200,000 and 300,000 fans have downloaded the app that allows fans to watch select foursomes play their Thursday and Friday morning rounds.
“The response has been aligned with what we have hoped for,” said Rick Anderson, executive vice president of global media for the PGA Tour.
To give those numbers perspective, Anderson said the viewership of the new coverage nearly matches the number of viewers who watch live streams on PGATour.com of afternoon weekend coverage of high-profile tournaments, such as The Players Championship.
“I don’t think the number is out of context with the number of live streams for our biggest events,” he said. “It’s that level of viewership.”
To drive early viewership and attract general fan interest, the tour and MLBAM currently offer PGATourLive.com on one-week-free trial. After that, subscribers are charged $4.99 a month for the OTT service.
That pricing structure will change for next season, when the tour plans to offer a full slate of coverage, with 31 events. MLBAM President Bob Bowman has said the price likely will be less than $10 per month but prices have not yet been set.
Reining in production costs is also a priority for next season.
“The production is a few hundred thousand dollars a week, and it is significant,” Anderson said. “The production has been one of the brightest spots and we are thrilled with the job that PGA Tour Entertainment has done. We know what it is going to cost and we are working on lots of potential solutions.”
Anderson would not disclose any revenue specifics or what any of those solutions might be.
The tour and MLBAM rolled out PGATourLive.com on July 23 with a beta test at the RBC Open. The product went live for the Quicken Loans National on July 30 and by season’s end will have been available for seven events, including all four FedEx Cup playoff tournaments. The PGA Championship was not part of the programming.
Terms of the partnership call for MLBAM to create and distribute the streaming infrastructure while the tour pays the production costs and sells ads against the product. The tour uses its current digital and television assets to market PGATourLive.com but has heavy promotional plans in the works for next season.
“We are still working out plans for next year, but you will see us market it pretty aggressively through our own channels and also support it with paid advertising,” Anderson said. “It is extremely important to us to present our content in the different ways fans want to consume it and tell fans that we have a robust digital platform.”
