In 2021, Amazon made a major splash in the sports broadcasting world by acquiring the rights to Thursday Night Football for a whopping $1 billion per year. This makes Amazon the first streaming service to exclusively carry a package of NFL games. So, how much did Amazon actually pay for Thursday Night Football? And, more importantly, will it be worth it?
Overview
Amazon paid $11 billion to carry Thursday Night Football for 11 seasons, streaming it on Prime Video to entice more sign-ups and as a retention tool in 2021.
But did Amazon get its value’s worth with such a high price point?
The Preliminary Findings
According to a Business Insider report, the answer appears to be no. TNF viewership was 25% lower than Amazon predicted, and the company has been looking for ways to compensate advertisers for the audience shortfall, including providing replacement ad inventory elsewhere.
Nielsen data showed that TNF games on Amazon averaged 9.6 million viewers, the lowest total since the NFL began selling the package in 2014.
Background
The NFL announced a new series of long-term TV deals worth an estimated $105 billion in 2022, including a historic deal giving Amazon exclusive rights to Thursday Night Football.
The NFL and Amazon entered a new era with this agreement, as Amazon became the first streaming platform to secure exclusive national rights to an NFL package.
Acquisition Specifics
The NFL’s new 11-year media rights agreement includes Amazon’s acquisition of Thursday Night Football.
Amazon will stream 15 Thursday Night Football games per season under the agreement, with the exception of Thanksgiving, which will continue to be broadcast by traditional networks.
Amazon is said to be paying $1 billion annually for the exclusive rights to Thursday Night Football.
This represents a significant increase over Fox’s previous agreement, which saw the company pay $660 million annually for the same package.
Amazon’s purchase of Thursday Night Football is a strategic move that allows the company to broaden its reach and attract more viewers to its Prime Video platform.
The NFL, on the other hand, benefits from the deal’s increased exposure and revenue.
Amazon became a major player in the media landscape after acquiring exclusive rights to one of the world’s most popular sports leagues.
The Effect of Amazon’s Purchase
Amazon’s acquisition of the exclusive rights to stream NFL Thursday Night Football (TNF) games for the next 11 years signaled a significant shift in the broadcasting and streaming services industries.
Here are some of the consequences of Amazon’s acquisition:
#1. Markets and Broadcasting
Amazon’s acquisition of TNF rights was expected to impact the broadcasting and market sectors significantly.
Amazon’s entry into the market is expected to increase competition, potentially resulting in better consumer deals.
Furthermore, Amazon’s acquisition of TNF rights was projected to result in increased viewership, which may translate into increased ad revenue for the company.
#2. Ads and Streaming Services
Amazon’s acquisition of TNF rights was also expected to impact streaming services and advertising.
TNF games were expected to be delivered to viewers via Amazon’s streaming platform, Prime Video.
This could result in more Prime Video subscribers, translating into more revenue for Amazon.
#3. Media Deals
The acquisition of TNF rights by Amazon was expected to impact media deals as well.
Amazon’s entry into the market is expected to increase competition, potentially resulting in better consumer deals.
Furthermore, Amazon’s acquisition of TNF rights was expected to lead to more media deals, as other companies may seek to partner with Amazon to gain access to its massive customer base.
Amazon’s Thursday Night Football Future
The acquisition of Thursday Night Football (TNF) exclusive streaming rights by Amazon has been a significant development in the world of sports.
The company reportedly paid $1.3 billion annually for the rights, valid until 2033.
With this move, Amazon has signaled its intent to become a major player in the world of live sports streaming.
Conclusion
Amazon has invested heavily in acquiring exclusive rights to Thursday Night Football.
Various sources claim that the company will pay $1 billion per year through the 2033 football season to be the exclusive home of live sports games.
This agreement is part of a larger series of long-term TV deals worth an estimated $105 billion announced by the National Football League.
While some may argue that Amazon paid too much for these rights, it is worth noting that live sports events are in high demand and command high advertising revenues.
Amazon has positioned itself as a major player in the streaming wars by securing exclusive rights to Thursday Night Football, and it has the potential to attract a significant number of viewers to its platform.
According to Andrew Marchand of the New York Post, Amazon’s investment in Thursday Night Football is a long-term strategic move.
According to Marchand, the transaction provides Amazon with a valuable asset that it can use to attract new customers and retain existing ones.
Furthermore, the agreement provides Amazon with a foothold in the lucrative world of sports broadcasting, which could lead to even more lucrative deals.
Whether this investment will pay off, in the long run remains to be seen, but it is clear that Amazon is betting big on the future of live sports broadcasting.
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