Amazon.com, Inc. (NASDAQ:AMZN) Finally Prepares To Pay $10 Billion For Live NFL Games Over 10 Years On Thursday Nights
Amazon.com, Inc. (NASDAQ:AMZN) pays a huge sum of $10 billion to show live sports over 10 years on Thursday nights.
Exclusive rights
Amazon gains exclusive rights on NFL games for 10 years. It is the biggest sum ever paid by Tech Company betting on live sports.
Today’s deal is different for the NFL, which shows a significant chunk of its games on traditional TV networks that belong to NBC Universal, ViacomCBS, Disney, and Fox. Now the big TV networks and NFL intend to run their business as usual despite the plummeting of traditional TV ratings.
Traditional TV viewing is taking a gradual decline over the years. However, NFL is continuing its popularity unabated. Of the ten top shows broadcasted on TVs in 2020, NFL games accounted for 7.
Despite losing some of its viewers to players like TikTok and Xbox, the NFL betting big on its fortunes by focusing its games on old-fashioned TVs.
Amazon shows 15 NFL games
As per the terms of the deal, Amazon will show 15 NFL games every season, mainly for prime users in the US. Amazon previously owns rights to streaming games, which are already broadcasted on TV networks such as CBS and Fox.
According to the forecasts of media observers, big tech companies will jump into the sports arena. Their prediction is now becoming true. Other deals entered by NFL on Thursday are valid for 11 years and leaves no opportunity for Apple or Google.
Facebook fails to win a bid
Facebook’s $600 million bid to clinch rights to cricket matches in India a few years ago went in vain. In Latin America, it later succeeded gaining rights to stream pro soccer games. The social media giant is willing to spend billions on rights for other sports.
According to a communiqué from Facebook this month, the company does not want to clinch rights to NFL games. In a letter to sports executives, the company conveyed its intention to stream the games for free to its audience.
Outsmarts Target and Walmart in the US
Amazon is performing well in the US by retailing more clothes than Gap, Walmart, and Target.
According to the latest information from Wells Fargo, Amazon occupies the top position in the retail sales of clothes in the US. Its sales of shoes and clothes gained 15% to reach $41 billion in 2020.