I was thinking about the idea of premium content this evening whilst watching my 3 hours of footy panel shows and had a thought.
Is football (ie AFL, NRL and A-League) the obvious test case for user pays premium content?
NBA fans can already access a similar initiative through the NBA League Pass – http://www.nba.com/broadband/league_pass.jsp – this costs US based subscribers around $180 USD per season.
Could a group like the AFL look at something similar?
I’m not saying that this would replace broadcast and pay TV deals, but could it be added as another option to the user?
And could something like this be added to club membership packages? ie – for an extra $100 per season you get access to watch your teams games online (after broadcast) on demand in high quality plus selected archived games.
Most AFL clubs have around 35,000-45,000 members. If 25% of members took this up the revenue could be interesting.
I don’t personally think 25% of members is an audacious figure. These members are forking out $300+ per year plus more on reserved seats, merchandise and membership add ons. They are passionate fans and value their team and their association with it.
With 16 AFL clubs, 25% of members (basing on 16 clubs x 35,000 members) could generate around $14m in revenue per year (or about $875k per club)
Most clubs could do with $875k I would imagine. And this could be done without impacting on TV ratings or revenues as it would be available post broadcast.
To me the idea doesn’t seem that crazy and the code of AFL is probably one of the groups that has content that is compelling enough to do this.
In the scheme of the $780m broadcast deal this is peanuts, but longer term you’d argue that this sort of on demand approach has a lot more revenue and growth potential that the current afl.com.au site and approach.