Thursday, October 18, 2012

Oh No Daddy! (Updated Friday 10/19)

2nd Update Friday 10/19: ESPN's Women's themed website has lept to Danica's defense with an article from motorsports veteran Brant James. Click here to read about Go Daddy saying just how much they value the Danica "brand."

Update: This Daly Planet column was first published back in June. Click here for a current story in USA Today reinforcing the fact that Patrick has not been seen in new Go Daddy ads since the company switched advertising agencies. Patrick is ready to drive full-time in the Sprint Cup Series next season. There are also some great reader comments from the time of the original posting. Feel free to add your opinion.

The images are burned into the minds of motorsports fans nationwide. Danica Patrick and her GoDaddy girlfriends pushing sexual innuendo across the TV screen. Danica and the stripping cop, Danica taking a shower and Danica joking about keeping her "beaver" safe are just a few of the tasteless offerings.

The engineer of the economic train that ultimately brought Patrick to NASCAR is Bob Parsons, the man pictured above. The founder of GoDaddy might be the ultimate creep to many, but like most self-made billionaires he sees himself as above it all. It's just a game to him driven by sales.

Last summer Parsons finally cashed out of GoDaddy in a deal that saw a group of private equity firms pay a total of $2.5 billion for the company. Parsons stepped aside from running the day-to-day operations and Warren Adelman became the company's new chief executive. Parsons remained connected to the new group and is being called executive chairman.

Little changed immediately, but Adelman has been dropping hints that the company is planning to go in a different direction. Not in terms of changing it's basic service of registering Internet domain names, but in presenting the overall image of the company to the public. Now, that change has begun.

Tuesday the New York Times confirmed that GoDaddy has hired a prestigious advertising agency called Deutsch New York to reshape the company's image. The rebranding will begin immediately with the first new TV commercials airing later this summer in sporting events including the Summer Olympics.

Click here to read the full story from New York Times media reporter Stuart Elliott.

The chief executive at Deutsch New York is quoted as saying GoDaddy did a "terrific job generating awareness." That same chief executive, who will now be in charge of the Internet company's new TV commercials, also called the older ads disruptive.

The chief executive of Deutsch New York, called one of the most powerful people in TV advertising, is a woman named Valerie DiFebo.

Elliott asked her to comment on the current GoDaddy ad campaign:

"As a woman, is it my favorite work?” she asked rhetorically, then replied, “No.”

On the topic of the future of the GoDaddy Girls:

They "will still have a role, but more in balance with what the brand has to offer," said DiFebo.

On the theme of the new ads for the company:

"The ads will tell more of a story about GoDaddy’s technology rather than entice consumers with appeals like 'To see more skin, click here,'" she added.

While Patrick and her management team have worked to broaden her commercial appeal, GoDaddy is the foundation that funded her current Nationwide Series ride and was said to be poised to continue that funding for a full time Sprint Cup Series team.

The immediate effect of this change in GoDaddy's philosophy and advertising is that Patrick's presence on TV will be reduced dramatically in just the next few weeks as the company shifts to the new commercials and image campaign. So no more body painting, dangling bikini's or veiled threats of nudity during NASCAR races.

The sport has seen a wide variety of sponsors come and go. The big question on the table is just how long Patrick's current GoDaddy contract is at this point and whether the rumored shift to the Sprint Cup Series next season is still in the works.

It won't make much sense for GoDaddy to play in NASCAR if the driver is not actively part of the company's rebranded ad campaign. This story has a lot more to be revealed over the next few weeks. Ironically, those words sound familiar.

We invite your opinion on this topic. Comments may be moderated prior to posting.

Tuesday, October 16, 2012

The Anatomy Of A Deal

It's going to be quite a while before that smile leaves the face of NASCAR Chairman Brian France. Amid a rapidly changing sports TV market desperate for product, France struck the motherload.

Here is the full announcement with all the available details provided by both NASCAR and FOX about the new multi-year agreement between the two parties. Read it carefully, as this agreement not only covers the future of the Sprint and Camping World Truck Series, it also previews the changes coming as SPEED TV becomes the FOX Sports 1 cable sports network.

With two full seasons left on their current television contract, NASCAR and FOX Sports Media Group (FSMG) announced today (Monday) an extensive new eight-year, multiplatform media rights agreement that ensures FSMG’s broadcast of NASCAR racing through 2022.

Under terms of the new agreement, FSMG also significantly increases its digital rights to include “TV Everywhere” live race streaming of its portion of the season for the first time ever beginning in 2013.

“NASCAR has been in very good hands and has enjoyed tremendous success the last 12 years in large part because of our fantastic partnership with FOX and FOX Sports Media Group,” said NASCAR Chairman and CEO Brian France. “We are thrilled to be able to extend our relationship in such a significant way for our track partners, race teams, and most importantly, our millions of loyal and passionate fans. This extension with FOX Sports Media Group helps position the sport for future growth as NASCAR continues to be an anchor with one of the world’s largest and most influential media companies.”

As part of the new agreement, which takes effect in 2015, FSMG retains the television rights to 13 consecutive NASCAR Sprint Cup Series points races beginning each year with the prestigious Daytona 500. In addition, FSMG retains the rights to the NASCAR Sprint All-Star Race, the Daytona Shootout, the Duel at Daytona, the entire NASCAR Camping World Truck Series season and practice and qualifying for both the NASCAR Sprint Cup Series and the NASCAR Camping World Truck Series races that FSMG broadcasts.

“We’re extremely happy to have worked closely with Brian and his team at NASCAR over the last few months to expand and extend our relationship for what is without question the most popular motorsport in the country,” said FSMG Co-Presidents and CEOs Eric Shanks and Randy Freer. “NASCAR has been a staple at FOX for more than a decade and we consider it one of the signature sports we cover. With our commitment renewed, we look forward to presenting NASCAR thoroughly, professionally and creatively for many years to come.”

On the digital front, FSMG gains “TV Everywhere” rights starting next season to live stream all FSMG races, along with pre- and post-race coverage, race highlights and in-progress race highlights to events it televises. This portion of the deal was made possible by NASCAR’s reacquisition of operational, business and editorial control of its digital platform, a move that takes effect on Jan. 1, 2013.

“NASCAR fans’ demand and desire for NASCAR content stretches across all platforms and distribution channels,” France said. “As we’ve done with this FSMG extension, we will continue to take the appropriate measures to ensure our fans have access to the sport wherever they are and through all available devices. NASCAR is one of the most accessible sports in the world and this new deal builds upon that in a very significant way.”

FSMG’s new and expanded television and digital media rights agreement with NASCAR includes, but is not limited to:

- An eight-year term from 2015 to 2022. The current FSMG/NASCAR rights agreement began in 2006 and runs through 2014

- Thirteen (13) consecutive points races beginning with the Daytona 500 on FOX

- The Daytona Shootout; Duel at Daytona; NASCAR Sprint All-Star Race; and Daytona 500 Qualifying

- Full NASCAR Camping World Truck Series season

- Right to televise all practice and qualifying sessions for FSMG races

- Ability to re-telecast races on a FOX network and via video-on-demand (VOD) for 24 hours

- Right to ancillary programming including, but not limited to, a nightly NASCAR news and information show as well as weekend at-track shows

- Right to NASCAR branded pre- and post-race shows

- Extensive digital rights beginning in 2013, including:

- TV Everywhere – live digital distribution of all races FSMG has rights to broadcast

- Pre- and post-race coverage

- Race highlights

- In-progress race highlights

- Replays of FOX-televised races

For this agreement, FOX will pay $300 million annually for eight years. That would be a total of $2.4 billion. This is an increase of 33% over the existing contract, but there are some items to note.

While FOX describes the fact that it can offer streaming of races for digital devices in the new agreement, media reporter Joe Flint of the LA Times notes that NASCAR fans will have to be a subscriber of a pay-TV provider to access that content. There is little doubt that provider will be the new FOX Sports 1 network.

As regular readers of this blog know, there is no love lost at the moment between NASCAR and Turner Sports. A nasty fight over digital issues saw NASCAR wind-up spending tens of millions of dollars to buy back its own online rights. NASCAR likes to cash checks, not write them.

The new FOX agreement paves the way for FOX to possibly buy the rights to the races currently in the TNT package and present that "summer six pack" on FOX Sports 1. Remember, those races are already being seen on a cable TV network. In theory, it would just be a channel change for fans. In reality, NASCAR would love it.

Finally, the clear language in the agreement surrounding practice and qualifying sessions speaks to those races being televised by FOX. As we mentioned in past weeks, TNT has never carried those sessions and ESPN has been hit and miss at best for that network's races.

It would be improbable to believe that FOX would want a branded network like FOX Sports 1 to carry the practice and qualifying sessions for races on TNT and ESPN. Under the SPEED banner, it made sense as the network was dedicated to motorsports in theory. That is about to change.

Finally, what becomes of shows like RaceDay and Victory Lane? In the New World Order, RaceDay would spend two hours promoting a race airing on TNT or ESPN once the FOX portion of the season is done. Tough to believe FOX Sports 1 would actively promote a Sprint Cup Series race running against NFL football on the FOX Broadcast Network.

It's going to be interesting to watch all this shake out, but one thing is clear. FOX has moved into the national cable sports business in a big way and used NASCAR to bring a large body of content to it's new network.

Despite it's ongoing issues, NASCAR struck paydirt with FOX. ESPN and TNT chose to pass on these early negotiations and will not make their intentions known until several months into the 2013 season.

We welcome your opinion on this topic. Comments may be moderated prior to posting.

Friday, October 12, 2012

NASCAR Classic: Field Of Streams

The murky world of online video streaming has been something that NASCAR had avoided. From the start of the existing NASCAR TV contract in 2007, online streaming of actual races was simply not allowed. NASCAR went for the money and sold all the digital rights to the sport, including the ability to stream content online, to Turner Sports.

Over the past several seasons some limited video offerings like RaceBuddy crept into the picture but actual races were never shown, only isolated cameras. ESPN offers the WatchESPN app, but all that does is allow existing ESPN subscribers access to the network's various feeds online.

Now things are about to change. The new guard at NASCAR bought back the digital rights this January, several years before the existing contract was about to end with Turner. While NASCAR may have been several million dollars lighter in the wallet, the move was long overdue. NASCAR will launch a new official website and an entirely new digital strategy in 2013.

A key part of this rollout will be complete NASCAR Sprint Cup Series races streamed online. But how these races will be made available is the issue. Click here for a recent USA Today article where new FOX Sports Media Group executive Eric Shanks says that FOX will begin streaming its Sprint Cup Series races next season.

While ESPN and TNT are cable networks to which viewers must pay and subscribe, FOX is an FCC regulated over-the-air broadcast network that operates with local stations nationwide distributing its content. The issue has long been that live streaming of races, even if controlled by zip code only to the US, would not be able to carry the same commercial inventory sold for TV.

Former FOX Sports chief David Hill said the local TV stations would revolt if the NASCAR product they carried was also available online. He also said it would ruin the ability of FOX to make back the money it paid to get NASCAR through national TV ad sales.

Having the new management group at FOX confirm streaming for 2013 in whatever form is one of the most significant improvements in terms of digital technology the sport has ever seen. Finally, the Daytona 500 on your iPad or android phone. After all these years of digital disaster, the sport is waking up.

If Shanks is kicking the door open, it is going to be up to NASCAR to decide if another audience is going to be served. There are folks who would pay a small fee to view a Sprint Cup Series race online from start to finish without commercials. NASCAR currently provides such a feed for TV viewers outside of the US called the world feed.

Since US commercials cannot be shown in other countries for obvious reasons, there has been a world feed for several years originating for Cup races. The idea would be to package the commercial-free races either as an entire season or a la carte for digital users to access. It would be no different from the current Trackpass and Raceview packages now offered by NASCAR, but this time it would be actual race video.

What this does is open the door to a new group of fans who want to interact with more than just a three hour live TV telecast where perhaps a bored announcer reads some fan tweets on the air. The younger set wants all the digital technology bundled, a social media-friendly platform available and the live video with no commercials.

As the off-season begins, details of what NASCAR will offer next season in terms of online video will certainly emerge. Hopefully, there will be a full slate of offerings outside of the content controlled by and limited to the existing TV partner websites and apps. It will be important to get as much news and "support programming" online as well. Imagine the Friday activity from the tracks streamed for free to build interest for the weekend races.

It probably should have happened years ago, but give NASCAR credit for taking control and working to get the digital side of the business organized. This story will continue to unfold over the next three months leading up to Daytona.

We welcome your opinion on this topic. Comments may be moderated prior to posting.