The Herald Bulletin

Overnight Update

Entertainment

October 7, 2013

Twitter tunes in to TV partnerships ahead of IPO

(Continued)

NEW YORK —

By inserting itself into the online buzz, the NFL was able to remind people the game was going on live at its NFL Network channel. Meanwhile, it earned new revenue from Verizon, a longtime sponsor that wanted to showcase its NFL Mobile app.

The NFL has more than 5.1 million followers on Twitter. But its new partnership with Twitter means the tweet also went out to millions of other users who might be interested.

Hans Schroeder, the NFL's senior vice president of media strategy and development, says he expects promoted tweets will eventually reach tens of millions of fans, multiplying its reach.

"We think it'll drive tune-in to our games and drive more people into the experience through NFL Mobile," Schroeder says.

As part of the deal, Twitter shares some of the revenue from Verizon's advertising spend when the phone company pays for "promoted tweets." Previously, the money might have gone only to the league itself.

Twitter's projected 2013 revenue is about $582 million, according to research firm eMarketer. At the moment, the company generates tens of millions of dollars of revenue from all of its TV deals, including those with ESPN, Turner networks, CBS and others, according to Brian Wieser, an analyst with Pivotal Research Group.

That's not huge. However, says Wieser: "This year, it's about getting the foot in the door."

Wedbush Securities analyst Michael Pachter estimates that Twitter gets just a small fraction of its revenue from the TV deals — around 1 percent. But by next year, the deals could amount to 5 percent, and 15 percent the year after, he says.

Twitter isn't alone in its quest to befriend TV content companies. Facebook, too, is recognizing the value of live TV chatter. Because of its sheer size — nearly 1.2 billion users versus Twitter's 218 million — Facebook has more conversations than any other social network. During the "Breaking Bad" finale, more than 3 million people generated 5.5 million "interactions," that is, status updates, comments or "likes."

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