Why Thursday Night Football Rights Gives Amazon an Edge



Amazon renewed its rights to broadcast Thursday Night Football

As noted in the previous part, Amazon (AMZN) has been investing heavily in its efforts to ramp up its video library offered to Prime members. As a result, the tech giant said it would be hiking the annual Prime membership price to $119.

A part of Amazon’s content push has been increasing its live sports offerings. On April 26, Amazon announced that it secured the rights to stream NFL games in 2018 and 2019, bringing 11 NFL games to its Prime video members. Amazon had a similar deal with NFL in 2017. Fox (FOXA) also plans to broadcast NFL games to traditional pay-TV subscribers.

Article continues below advertisement

NFL schedule gives Amazon a slight edge over competitors

Bringing more content to its Amazon Prime videos offering is one of the ways Amazon is justifying the 20.0% increase in its membership fee. The value of the deal was not disclosed. However, given that Google’s YouTube, Verizon (VZ), and Twitter (TWTR) also sought to obtain these NFL broadcast rights, it’s likely to be significant.

Obtaining the broadcast rights for the country’s most popular sport for several years gives Amazon a slight advantage. Live sports is one way in which it can distinguish its offerings from its main competitor, and leader in streaming services, Netflix (NFLX). Netflix has a much broader video library, as it continues to spend on content.

Netflix’s standard subscription costs $10.99 per month, or roughly $132.00 annually, which is $13 higher than the new Prime membership fee. Although Amazon doesn’t have a content library to match Netflix yet, its members also have access to an array of other services.


More From Market Realist