Beware The Ides Of March For The NFL Exclusive License

[Big FN Deal]

Quote: Originally Posted by roadman

I think Big, what you have to take into account, is what RG mentioned. The NFL is all about exclusive licensing. If the they change their business model, I'd be surprised.

Yeah but that's thing Roadman, this presupposes that the NFL's business model hinges on supplemental video income and I don't think it does. I think this issue is far more important to EA, a video game company and gamers, than the NFL. I think the NFL jumped on the chance to increase profits back in 2004 when the opportunity presented itself but had the status quo stood, with 2k not potentially cutting into the NFL royalties through that price drop, the NFL might have stayed content.

There is no way I believe the NFL cares as much about this one supplemental revenue stream as EA has implied they do. I think it's a matter of if the NFL can sell an exclusive at an upfront increased rate, great but if not, no biggie, they will go back to an open license again.

I really wouldn't be surprised to see some "spin" come out about how EA has always believed competition brings out the best in video games just like in the NFL, so EA is glad to hear that the NFL has chosen to reopen the NFL license. LOL

[roadman]

Quote: Originally Posted by Jimi XIII

This is my assumption... 2K has been strangely quiet since the news came out last year (or maybe it was the year before) about them approaching the NFL for a deal. After that, all we heard was EA got their deal extended but for only one year. Yet we heard nothing from 2K that the deal was officially denied. I think 2K asked and/or the NFL gave 2K another year to prep up and will be excepting a deal with both 2K and EA to make NFL games. That's just what I've been pondering about the whole thing, of course nothing official whatsoever.

I've heard most, if not all, of the personnel from the 2k days have moved on, so, not sure what to think.

[roadman]

Quote: Originally Posted by Big FN Deal

Yeah but that's thing Roadman, this presupposes that the NFL's business model hinges on supplemental video income and I don't think it does. I think this issue is far more important to EA, a video game company and gamers, than the NFL. I think the NFL jumped on the chance to increase profits back in 2004 when the opportunity presented itself but had the status quo stood, with 2k not potentially cutting into the NFL royalties through that price drop, the NFL might have stayed content. There is no way I believe the NFL cares as much about this one supplemental revenue stream as EA has implied they do. I think it's a matter of if the NFL can sell an exclusive at an upfront increased rate, great but if not, no biggie, they will go back to an open license again. I really wouldn't be surprised to see some "spin" come out about how EA has always believed competition brings out the best in video games just like in the NFL, so EA is glad to hear that the NFL has chosen to reopen the NFL license. LOL

I understand what you are saying, but I'm looking at the other business modes the NFL has besides video gaming.

DirectTv, Rebook or Nike, Coors Light, etc.... all of these are exclusive licenses.

I agree that EA isn't making money off the license and they don't have competitors at this time, it doesn't mean though that a lower deal won't be struck like someone above me mentioned.

Once the NFL backs away from their standard business model and they way they prefer to do business, then I would tend to agree with you.

Until that happens.............

[kjcheezhead]

Quote: Originally Posted by roadman

I understand what you are saying, but I'm looking at the other business modes the NFL has besides video gaming. DirectTv, Rebook or Nike, Coors Light, etc.... all of these are exclusive licenses. I agree that EA isn't making money off the license and they don't have competitors at this time, it doesn't mean though that a lower deal won't be struck like someone above me mentioned. Once the NFL backs away from their standard business model and they way they prefer to do business, then I would tend to agree with you. Until that happens.............

A major difference is that in these examples, there is a competitor ready to step in the moment the current company didn't resign the deal. With video games it takes time just to put a product on the shelf at all.

[roadman]

Quote: Originally Posted by kjcheezhead

A major difference is that in these examples, there is a competitor ready to step in the moment the current company didn't resign the deal. With video games it takes time just to put a product on the shelf at all.

I would think that if a company flashed the dollars at the NFL, they would need a product to produce right away, wouldn't you agree? Or else they wouldn't be able to produce a product on a yearly basis.

In other words, they better have a product out of the gate if they want the NFL contract so bad.

[Big FN Deal]

Quote: Originally Posted by roadman

I understand what you are saying, but I'm looking at the other business modes the NFL has besides video gaming. DirectTv, Rebook or Nike, Coors Light, etc.... all of these are exclusive licenses. I agree that EA isn't making money off the license and they don't have competitors at this time, it doesn't mean though that a lower deal won't be struck like someone above me mentioned. Once the NFL backs away from their standard business model and they way they prefer to do business, then I would tend to agree with you. Until that happens.............

I hope I don't come across like I am arguing with you because that is not my intent and this is all just time marking speculation anyway. That said, those other things have other companies willing to pay if the current ones will not, competition for those NFL rights. However, supply and demand may dictate this is no longer the case for one official NFL video game if no other companies are willing to pay for it.

Like I said, I am just trying to make this about dollars so it can make business sense and an open license is what I will conclude after March 15th. Of course I could mistaken though.

[Armor and Sword]

Quote: Originally Posted by Big FN Deal

In an attempt to somehow bring your "two cents" on topic, you are a another blatant example of why this NFL exclusive is outdated, imo. As much as I disagree with the notion that no matter what stellar NFL simulation video games potentially may come out in the future, being completely devoted to "Madden or bust", this mindset is probably rampant in relation to Madden. I am learning everyday that my POV on most things concerning the world is probably a minority view and that the majorities POV is foreign to me. So seeing as EA has probably solidified Madden as a brand choice for millions, the way to increased profit is bringing in more NFL devoted consumers. The way other sports simulation games seems to be currently accomplishing this is by investing in maximizing the authenticity represented of their respective sports rather than investing in exclusive licenses.

I love playing Maddens brand of video game football.

Can't that be ok?

I have played other football games over the last 20 years. Some were really good and some were pure garbage.

Madden has always been my favorite.

It's really simple.

Competition is aways good and I wish there were more choices. Then I could test drive other games. But this is the reality and fortunately for myself I really enjoy Madden.

And didn't 2K grab the MLB exclusive and push out EA MVP Baseball.....a great game in it's own right I may add?

Thank god for SCEA and The Show. I don't really enjoy MLB 2K.

[Big FN Deal]

Quote: Originally Posted by roadman

I would think that if a company flashed the dollars at the NFL, they would need a product to produce right away, wouldn't you agree? Or else they wouldn't be able to produce a product on a yearly basis. In other words, they better have a product out of the gate if they want the NFL contract so bad.

Yeah, that's the point. For the NFL to leverage a NFL exclusive license there has to be companies ready to produce a NFL game, annually. The only company seemingly poised to such a daunting task is EA which puts them in a win/win situation.

There seems to be no business sense in EA paying more for an exclusive license than an open license would cost with no viable competitor and no business sense in the NFL selling an exclusive license for the cost of an open license when they could potentially make more from multiple companies.