DIRECTV (DTV), Google Inc (GOOG): Deep Pockets

A deal with NFL would most likely lose money for Google, especially if the company pays full price for exclusivity. But it would also give the company the possibility to become a major player on the content side of the online TV business.

YouTube is a formidable platform with more than 1 billion unique visitors per month , and Google Inc (NASDAQ:GOOG) has recently started experimenting with a paid YouTube subscription service. A deal like this one could give the company instant access to one of the most valuable programming assets in the US, and it could be a real game changer for both Google and online TV if the company continues adding valuable content over time.

This would show viewers that they have viable alternative to cable plans in online streaming, including not only movies and TV shows but also widely coveted sports. Having Sunday Ticket on YouTube could provide the encouragement for many people to finally cut the cord with traditional cable companies, providing a big push for online TV in general and YouTube in particular.

Foolish bottom line
Google is one of the most innovative and disruptive companies around, and products like Android, Chrome, and YouTube have proven over time that the company knows how to put long-term strategic considerations above short-term profit margins.

Acquiring the rights to Sunday Ticket package would provide access to an enormously valuable property in the battle for the living room.

Couple that with the huge popularity YouTube already has in free content, the long term potential of Google Fiber and the recently launched Chromecast, and things could become quite interesting when it comes to Google and the future of TV.

Even if Google doesn’t manage to close this deal, the fact that it’s going for it says a lot about the lon- term vision of its management team. Google is betting on the future of TV on multiple fronts at the same time and the company is not afraid of making big investments to secure its position in a key strategic area with huge potential over years to come. This is already good news for Google shareholders.

The article Google Goes for a Touchdown With the NFL Deal originally appeared on Fool.com and is written by Andres Cardenal.

Andres Cardenal owns shares of Google. The Motley Fool recommends DIRECTV and Google. The Motley Fool owns shares of Google.

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