Thursday December 7, 2023

How the NFL Fits Into Amazon’s Bigger Strategy

  • Amazon's video content often leads its users to interact with other parts of Amazon Prime.
  • The company recently unveiled a TV.
Amazon/Design: Alex Brooks
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Amazon CEO Andy Jassy hinted at the company’s media strategy, namely how its NFL and live sports content can draw users into its retail ecosystem.

“It turns out that when people consume video content through Prime, they also tend to engage in some of the other activities that are available through Prime,” Jassy told CNBC.

The sports rights the tech giant has bought up may both help to keep its over 200 million subscribers engaged and encourage them to use the massive e-commerce platform for which the company is best known.

The company negotiated exclusive rights to “Thursday Night Football” starting next season through 2033 at $1 billion per year. 

“We’re very, very excited about that starting in ‘22 and we’re gonna try and be inventive in the experience we provide for fans,” Jassy said.

Amazon’s 2019 Premier League broadcasts coincided with a record number of new Prime memberships in the United Kingdom.

  • Amazon is believed to be the leading contender for “NFL Sunday Ticket” at a price of around $2 billion to $2.5 billion per year. Jassy declined to gauge the company’s interest in “Sunday Ticket” but noted that it has a “very important” partnership with the NFL, citing Amazon Web Services’ ongoing deal. 
  • Amazon also holds rights to Ligue 1, Ligue 2, the WNBA, and Champions League.

Last month, Amazon unveiled its first televisions under its own brand name, merging  its shopping and media offerings into a single device.

“It’s still early days for us in media,” Jassy said.

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