Amazon Prime's growing investment in live sports broadcasting and its impact on traditional sports media.
Amazon has invested significantly in live sports broadcasting through Amazon Prime Video. That includes an exclusive deal this season with NFL for Thursday Night Football broadcasts as well as agreements to air Seattle Sounders and WNBA games locally. Amazon is using proprietary tech solutions such as QR codes in dynamic ads to drive viewers directly to shopping on Amazon for NFL matches, which led to 80 percent more purchases versus static ads during NFL matches.
As reported on the Hub, this ad revenue will likely be supplemented by sponsorship sales during broadcasts and by investing in technology that enables targeted ads based on viewer viewing habits - something the company anticipates will bring in over $2 billion worth of ad revenue for 2016.
Amazon's move to expand its sporting offerings comes as they enter their final year of a media rights deal with the NBA that expires in 2024. According to Marine, Amazon will "aggressively but rationally" seek rights packages for tier one sports that draw large audiences as well as emerging properties such as women's basketball and hockey.
Amazon is expanding its live sports partnerships by increasing original sports content production, including fandom-oriented original series and events as well as unique sports-related content such as live events. They will also expand their relationship with Seattle Sounders to offer them their own branded channel on Amazon Prime Video.
Amazon still faces obstacles in order to be successful in live sports streaming, which includes making sure consumers turn on the service regularly and watch its offerings. Given all the other available live sports streaming options, ensuring consumers use Amazon effectively requires a strong brand strategy and will power.
Amazon.com/code Prime Video's brand has long been seen as a treasure chest of entertainment that allows viewers to discover millions of choices based on their interests and fandoms. Approach is key in engaging viewers to its sports offerings as well as original shows such as Fleabag and The Marvelous Mrs. Maisel. Brand strategy will also play a vital role in helping Amazon overcome technical challenges, including low latency playback for live sports events - one area Bennett highlighted as being essential to its future innovation. He indicated working with device distribution partners such as TV manufacturers, gaming console makers and ISPs in this effort - indicating how crucial partnership ecosystem is for its success here.
