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Why Amazon got involved in the fight for NFL broadcasting rights

Rob Gronkowski, 87, celebrates at the Tampa Bay Bookachers Rob Gronkowski, 87, after touching a first-quarter touchdown during the LV Super Bowl between Kansas City and Tampa Bay Bookiers on February 7, 2021, at the Raymond James Stadium in Tampa. Florida.

Cliff Welch Sportswire Icon | Getty images

Amazon has turned its attention to being more than just a website to stock up on phone chargers and paper towels and air the latest episode of “The Marvelous Mrs.

Amazon has been in talks with the National Football League for Thursday night matches exclusively from 2023, CNBC reported on Thursday. As part of the agreement, Amazon will be responsible for production costs, and the games will continue to be broadcast on local television in the home markets of each of the teams they play.

Winning exclusive streaming rights will mark Amazon̵

7;s most aggressive boost to date in sports content. It also has the potential to add even more value to Amazon’s Prime Video platform, while serving as an added bonus to its Prime subscription program, which now boasts more than 150 million paid members worldwide.

For Amazon, its video streaming service has always served a greater purpose than just a tool to compete with streaming competitors such as Netflix and Hulu.

Prime Video is part of Amazon’s popular flywheel with compelling user offerings. The idea is for Prime Video to entice more people to become part of its $ 119 a year subscription Prime, which leads to more engagement and more purchases on the site.

Amazon CEO Jeff Bezos outlined why Prime Video is a good business model for the company in an interview with Recode in 2016: “From business POV for us, we get this content in an unusual way. When we win a Golden Globe, it helps us sell more shoes. “

Sports content and NFL games in particular reinforce this valuable offering for current and future Prime subscribers. Sports content can also attract the rapidly growing share of cable knives from other services.

The company already has a service called Amazon Channels, which allows customers to choose the channels they want to subscribe to, such as Starz and HBO, without having to sign up for a suite of programs or sign a contract.

Making a deal with the NFL can make the Amazon Channels service even more appealing, helping it stand out from such non-sporting offerings.

In the long run, if Amazon manages to bring exclusively NFL games, which would mean removing them from traditional television, this could serve as a winning move for advertisers. Amazon has a huge amount of user data, from user interactions with devices connected to its vast Alexa ecosystem, to the millions of purchases on its e-commerce site.

Amazon has not only visibility of what buyers are looking for and buying, but also which ads they click on and whether they have purchased an item after watching an ad. So it can ensure that brands get their ads in front of the right people.

Advertising quickly transformed into a key profit engine for Amazon’s overall business. Amazon is expected to be the leading earner among the dominant digital advertising business in 2021 and 2022, with advertising revenue growing to $ 85.2 billion by 2026, up from an estimated $ 26.1 billion in 2021, according to a Cowen study published in January.

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