TV networks are paying big bucks to acquire the rights to air NFL games, and the price is only going up. Total, CBS, Fox, DirecTV, ESPN, and NBC are paying the NFL over $5.5 billion for TV rights this year, a 22% increase from last year.
The NFL is one of the most reliable drawers of large television audiences, consistently earning tens of millions of viewers for primetime games. These numbers are likely to grow stronger this fall with the addition of "Thursday Night Football" on CBS.
"Because of Thursday night we're going to have more live programming ... and that's going to help us quite a bit," said CBS Chief Executive Leslie Moonves to Wall Street analysts. Traditionally, Monday night has been the only weeknight to feature NFL games, but this new addition will give CBS a major advantage on the Thursday night schedule. CBS is currently the most-watched network in the country, but the network is seeking to cement themselves at the top for the foreseeable future.
CBS' contract for "Thursday Night Football" is a two-year deal at $275 million annually, although the NFL can opt out after the first season. The deal allows CBS to run seven night games on Thursday, and one night game a Saturday in December. CBS is also giving the NFL over $800 million per year for their package of Sunday morning and afternoon games for a grand total of $1.1 billion for NFL rights.
CBS' contract also includes a provision that Thursday Night Games be simulcast on NFL Network, the channel owned by the NFL, and and agreement that CBS will produce eight additional Thursday night games for the NFL Network later in the season.
Close to 27 million viewers tuned in to watch this year's "Thursday Night Football" NFL season opener, a 7% increase compared to the 2013 season opener. If those numbers continue, FOX, NBC, and ABC will have difficulty competing on Thursday nights. One analyst suggested that the "The Big Bang Theory" could be moved from its current place on the schedule from Thursday night to a Monday night block, but that would be shortsighted since "Monday Night Football" airs on ESPN on those nights.
Thursday nights are considered the most profitable night of the week for broadcast networks because retail giants, movie studios, and car companies are willing to pay a premium to encourage viewers to spend their dollars during the upcoming weekend. CBS is charging around $600,000 for every 30-second commercial spot during "Thursday Night Football" which is still 14% less than what NBC charges for the same spot for "Sunday Night Football."
Overall, analysts expect "Thursday Night Football" to be financially profitable for CBS, but the critical blow it will deal to the other networks on Thursday night is just as important. CBS has already expressed interest in renewing the deal beyond the current contract.
