Why Facebook Is Going Big on Sports
Facebook to show NFL recaps and highlights
Facebook (FB) wants to invest big in video streaming—especially in sports. Early in September, the company bid $600 million to win streaming rights for the IPL (Indian Premier League), a popular cricket tournament, but it lost to Star India. Earlier this year, Facebook signed a deal with Major League Baseball to stream 20 baseball games, and just a few months ago, it said that it would soon live stream MLS (Major League Soccer) matches.
Now, the social-media giant has signed a two-year deal with the NFL (National Football League) to show recaps, highlights, and other videos of NFL games immediately after games are over to users around the world.
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Facebook has over 2 billion monthly active users. For now, the service will only be shown to US viewers on Facebook’s new “Watch” platform.
Facebook wants to increase the avenues for its ad revenues
Twitter (TWTR) and Amazon.com (AMZN) have also shown their intent to stream high-profile sports. Twitter hosted a ten-game package to stream NFL games in 2016 for $10 million, and it has paid $50 million for a similar bundle this year.
As the graph above shows, Facebook’s ad revenues have been stalling for the past few quarters. Facebook is thus trying hard to increase the avenues of their ad money. Facebook stock has soared by nearly 45% year-to-date.