NFL Uncategorized

Amazon lands NFL television rights

The NFL tried out streaming for “Thursday Night Football” on Twitter last year. This year they are going with another streaming partner. Amazon has signed on to stream 10 TNF games in the 2017 season. The stream will only be accessible to Amazon Prime customers. The deal creates a lot of opportunity for the league.

Amazon paid $50 million for the rights to this year’s games. That’s a 5X increase to what Twitter paid last year. Amazon must assume it can monetize streaming NFL games better than Twitter, because that’s a hefty spike for streaming rights.

As some articles have pointed out, Amazon has a distinct advantage because it’s not a traditional media company. Amazon could run ads around the game, or use the traditional television ads, and overlay the product on the screen. A simple link and people are suddenly buying the product that was just advertised a second ago. This could create business for everyone. Amazon will collects as the online retailer, sales could spike for the advertising partner, and eventually the NFL could wet it’s beak by partaking in some type of revenue share.

Of course this does come with issues. Twitter is widely available to anyone who signs up. The Amazon offering only comes with Prime. That could drop streaming numbers because of access. Of course, the NFL offset that issue with the increase in rights fees

It seems like the NFL is trying out each streaming service to be prepared for the future. Now it has a relationship with Twitter and Amazon. For years, people in the industry have been waiting for tech giants to get into sports rights. The names were always Apple and Google, but the past two years Twitter and now Amazon have entered the fray. Netflix could be next.

Amazon is currently more successful than Twitter, but that doesn’t mean Twitter did a bad job with streaming NFL games. It will be interesting to see where Amazon takes this partnership and what other companies can learn from Amazon’s actions.

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