Facebook and the NFL have come to an agreement that will allow Facebook to distribute content from NFL games on their ‘Watch’ system, which is made to provide a more TV-like experience to viewers. The content will include game highlights, recaps, clips, and other related shows.
One of the most interesting things about the deal is not that Facebook is moving toward more TV like content, which has been expected for some time, but the way that the deal is being funded. Facebook is going to pay the NFL a set amount of money for the usage of the content itself. Once Facebook recoups that amount from ad revenue, the money being made via ads will be split between Facebook and the NFL.
There is no official word on the exact details of the arrangement, but reports suggest that it is a 50/50 split on the ad profits.
This type of arrangement may set the standard for major content producers like this between Facebook, and possibly other sites, in the future. As more and more people are moving away from standard TV viewing, content producers like sports will need to make sure they are able to get in front of the desired audiences as effectively as possible.
In addition, all the NFL teams will be posting clips and other videos to their Facebook pages, which will help to keep people on the social network.
New and innovative content deals like this are likely going to be seen much more often in the future.