You might not have heard of Perform Group, but the company based in the United Kingdom is quickly obtaining rights to several international soccer leagues as well as the NFL for a subscription over the top channel that will launch in Austria, Germany, Japan and Switzerland next year. It hopes that the still-to-be-named channel will become the Netflix of sports.
Not only will the service stream live games, but it will also provide original content from various teams. Among the rights Perform Group has obtained include La Liga, Bundesliga, Serie A and Ligue 1 as well as the aforementioned NFL. The cost is projected to be $10 per month.
Perform says it will provide minimum revenue guarantees to their league partners and then split revenue once commitments to cover overhead costs are met. Whether the channel will sell advertising is not known at this time, but one would think that commercials will help to bring in revenue along with the subscriptions.
By signing with Perform, the NFL heads into markets that will expand its fanbase. The NFL says it’s popularity is growing in Germany and Japan, two countries which it has made inroads, but it also has an opportunity in Austria and Switzerland.
Perform is launching in Germany and Japan, two countries where viewers don’t have a dominant sports cable or satellite channel. And by going over the top and directly to consumers, Perform can avoid any carriage problems.
The company is projecting itself as a sports Netflix and it has even hired a former European Netflix executive to help market the service.
Perform Group CEO Juan Delgado tells CNBC that his service shows that viewers want sports differently instead of going through cable:
“I think ultimately consumer habits are changing,” Delgado said. “You read all the cord cutter coverage that gets in the U.S. and the position which ESPN might supposedly be under. The leagues are ultimately worried about delivering content to their fans.”
We won’t see this service here in the United States for now as most of the major sports properties are locked up well into the next decade, but one can’t rule out an over the top service down the road and perhaps the NFL will be participate in one way or another.
[CNBC]
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