EverPass Media’s live sports streaming portfolio has grown significantly with its recent agreement to broadcast Netflix’s Christmas Day NFL games to commercial venues. This partnership marks Netflix’s second venture into distributing content to commercial establishments, including bars, restaurants, hotels, and gyms, through a third-party platform. With this deal, EverPass Media has reset the chess board in live sports commercial distribution.
If you’re an NFL fan looking to escape the family after opening presents on Christmas Day, you can head out to catch the Christmas Day doubleheader at your local bar or restaurant thanks to this new partnership.
Key Points
- Netflix is changing how it distributes content outside the home to meet sports fans’ expectations.
- EverPass Media’s strategic position is strengthened by this partnership and its existing relationships with NFL streaming partners.
- EverPass Media was founded to help sports fans navigate the complexities of streaming platforms and exclusive rights deals.
- ESPN+ may partner with EverPass Media in the future as early as 2025
- EverPass Media could further expand its distribution network by incorporating Comcast for Business and Dish Business.
Inside the Netflix Deal
This partnership expands Everpass’s sports offerings, notably strengthening its NFL content. Fans can now enjoy a wider range of exclusively streamed live sports events, including NFL Sunday Ticket, Peacock’s Sunday Night Football, Amazon Prime Video’s Thursday Night Football, at bars, restaurants, hotels, and other commercial venues.
Netflix’s recent boxing match featuring Mike Tyson and Jake Paul was distributed to over 6,000 commercial venues via Joe Hand Promotions, setting a record for commercial distribution of a combat sports event. However, Paul’s promotion company, Most Valuable Promotions (MVP), arranged this distribution, which co-produced the event with Netflix rather than Netflix itself.
It was expected that Netflix would collaborate with EverPass Media for the Christmas Day doubleheader, considering EverPass’s established relationships with the NFL and its affiliated streaming partners, including YouTube, Peacock, and Amazon Prime Video.
“We’re excited to be the first to partner with Netflix to help deliver these marquee games to the commercial market. This partnership, along with other NFL content distribution, is a strong point of validation for EverPass as we continue to focus on bringing premium sports content to commercial businesses, revolutionizing viewership for rights holders and business owners alike,” said Alex Kaplan, the CEO of EverPass Media.
EverPass Media History
EverPass Media, established in 2023 through a collaboration with RedBird Capital Partners and 32 Equity (the strategic investment arm of the National Football League), is addressing a concern for sports fans. With the rise of streaming platforms securing exclusive rights to major sporting events like NFL games, the availability of these games in commercial establishments like bars and restaurants became uncertain. EverPass Media’s solution ensures that fans can enjoy their favorite sports content in these social settings regardless of whether it’s offered through broadcast, cable, or streaming distribution.
This need arose when Google’s YouTube and YouTube TV acquired the rights to NFL Sunday Ticket ahead of the 2023 NFL season, previously exclusive to DirecTV for 28 years. This shift disrupted the established model for commercial establishments relying on DirecTV to broadcast NFL games. While YouTube secured the streaming rights, its focus was on direct-to-consumer in-home streaming rather than commercial distribution. Recognizing the need to bridge this gap, the NFL sought a solution to maintain widespread access while curbing unauthorized distribution, and thus, EverPass Media was born.
The NFL’s 2021 media deals, valued at $110 billion over 11 years, introduced new distribution for some of the most valuable television programming in the U.S. These deals included exclusive streaming rights for games on platforms like Amazon Prime Video, Peacock, and ESPN+. This emphasized the necessity for a comprehensive platform like EverPass Media to aggregate, distribute, and facilitate the streaming of live sports and entertainment content specifically for commercial businesses.
While EverPass Media holds a strong position with its extensive sports rights portfolio, it faces competition within the DirecTV for Business ecosystem. DirecTV for Business has established direct relationships with content providers like Apple TV+ (for MLS and MLB content) and Paramount+ (for UEFA Champions League, Europa League, and Serie A content), offering alternatives to EverPass Media’s offerings. Furthermore, DirecTV for Business collaborates with other content distributors such as Joe Hand Promotions. Joe Hand Promotions has a strong foothold, particularly its longstanding partnerships for distributing UFC, ESPN+, WWE, and other boxing and wrestling content. This diverse content portfolio directly challenges EverPass Media’s market share.
Strategic Implications
Netflix’s Out-of-Home Juxtaposition: Netflix’s partnership with EverPass Media and its previous collaboration with Joe Hand Promotions signals a significant shift in the company’s approach to out-of-home distribution. This strategy contrasts with Netflix’s stance on theatrical distribution for its feature films. The move aligns with the expectations of sports fans who want access to live sports content both at home and in commercial establishments.
Additionally, Nielsen’s inclusion of out-of-home viewership in its TV ratings impacts Netflix’s growing advertising business. Contrary to the Tyson-Paul bout, Netflix has partnered with Nielsen to measure viewership for its two Christmas Day NFL games. This approach also brings Netflix in line with the NFL’s other streaming partners.
“We are appreciative of Nielsen’s efforts to make out-of-home measurement more complete, providing a much clearer picture of the true audience for all television viewing and especially sports viewership,” said Paul Ballew, chief data and analytics officer of the NFL earlier this year.
EverPass’s Competitive Positioning: This Netflix partnership solidifies EverPass Media’s role as a vital link between streaming services and commercial establishments. Leveraging DirecTV for Business’s existing infrastructure, EverPass Media delivers businesses a diverse range of content. This includes football and additional sports content through its Peacock Sports Pass. Furthermore, with Amazon Prime Video set to become an NBA rights holder next season, EverPass Media is poised to expand Amazon’s package to include NBA basketball. EverPass Media is well-equipped to handle Netflix’s commercial distribution requirements should Netflix decide to acquire incremental live sports rights in the future.
“Out-of-home viewership continues to be a contributor to growing audience figures, especially around the holidays. Having this content is essential for bar and restaurant owners across the country, and we’re proud that we continue to build a robust content library and streaming platform to make accessing this content seamless for our customers. We look forward to working with Netflix on one of the biggest game days of the year to deliver these matchups to a wider audience,” said Kaplan in EverPass Media’s partnership announcement.
The Take
Currently, ESPN+ is the only streaming service that doesn’t distribute NFL content commercially through EverPass Media. This is due to ESPN’s existing agreement with Joe Hand Promotions for content distribution, which is in effect until 2024. However, given ESPN’s strong relationship with the NFL and the changing industry landscape, the Worldwide Leader In Sports may consider moving away from Joe Hand Promotions and partnering with EverPass Media in 2025. This is a perfect opportunity for EverPass Media to “Fetch The Deal,” which so happens to be the name of my newsletter
If EverPass Media successfully secures ESPN+ as a client, it would significantly change the market dynamics. This potential shift could result in Joe Hand Promotions becoming a service primarily focused on boxing and wrestling content.
In contrast, Apple TV+ and Paramount+ may not be interested in partnering with EverPass Media due to their current sports rights portfolios and their existing commercial distribution arrangements. However, if either service were to acquire exclusive NFL games, a partnership with EverPass Media could become beneficial.
The NFL’s agreement to stream Christmas Day games on Netflix is temporary, lasting only three years. This opens the possibility for a different streaming provider to secure these rights as soon as 2027. The NFL’s contract with Paramount’s CBS also includes a “Change of Control” provision. This provision allows the NFL to adjust the agreement if Paramount merges successfully with SkyDance. In such a scenario, SkyDance could negotiate for exclusive streaming rights to an NFL game on Paramount+, similar to the exclusive rights currently held by ESPN+ and Peacock. It’s worth noting that Skydance, like EverPass Media, shares a common investor in Redbird Capital.
EverPass Media could further expand its distribution network by incorporating Comcast Business and Dish Business alongside its existing partnerships with DirecTV for Business and Spectrum Business. This strategic move could attract major content providers like Apple TV and Paramount+ to reconsider direct distribution models. Additionally, acquiring Comcast and Dish’s business products would distinguish EverPass Media from its competitor, Joe Hand Promotions, which also utilizes DirecTV for Business and Spectrum Business as service providers.
Finally, I think there’s a strong possibility that EverPass Media, Netflix, and the NFL will announce expanded commercial distribution to include Cosm’s “Shared Reality” experience in their Los Angeles and Dallas locations. Cosm, 32 Equity, and EverPass Media share Redbird Capital as an investor and share mutual interests in increasing NFL consumption and enhancing the fan experience.
Conclusion
EverPass Media’s deal with Netflix to broadcast NFL Christmas Day games to commercial venues expands its live sports streaming portfolio. The partnership strengthens EverPass’s NFL content, allowing fans to watch a wider range of live sports events in bars, restaurants, and other commercial venues. This move aligns with Netflix’s shift in out-of-home distribution strategy and solidifies EverPass Media’s position as a critical link between streaming services and commercial establishments.
EverPass Media’s future growth may include securing ESPN+ as a client and expanding its distribution network. However, competition within the DirecTV for Business ecosystem and the temporary nature of the NFL’s agreement with Netflix present challenges. Overall, the partnership with Netflix is a significant step for EverPass Media in the evolving landscape of commercial establishment live sports streaming.
Andrew Wamugi, an entertainment, sports, media, and technology professional, contributed to the content strategy of PlayStation 4 and Meta’s Spark AR platform during their early stages through partnerships with streaming media companies, including Netflix, Amazon Prime Video, Hulu and YouTube, and sports leagues like the NBA, MLB, NHL, NFL, and several European football clubs. You can read more of his insights and perspective in his newsletter, Fetch The Deal.
