Facebook expanding sports offerings
Facebook (FB) has recently inked several live sports broadcast agreements, indicating its ambition to make its platform the go-to for sports fans. On August 15, Facebook announced that it had acquired exclusive rights to show live UEFA Champions League matches in Latin America for three years beginning this year.
Earlier this month, Facebook also bought rights to show English Premier League and Spanish La Liga matches in several markets. The latest sports deals add to Facebook’s existing sports agreements, including the rights to show Major League Baseball games.
Amazon looking to offer more sports content
Facebook is far from being the only technology company pursuing sports content. Amazon (AMZN) and Twitter (TWTR) already offer sports content to customers through their online video services and have shown they may want to increase their sports offerings. In addition to licensing content, Amazon and Netflix (NFLX) also invest in original productions. Although Netflix doesn’t offer sports content, it estimates that it may spend up to $8.0 billion on content licensing and production this year.
Sports content strikes a chord with young people
According to Google (GOOGL), which offers sports content through its YouTube TV service, sports are among the factors making young people willing to pay for live television service. Although Facebook sports content is offered free of charge, sports offerings may enhance the appeal of its social media service, attracting more new users and advertisers. Facebook serves over 6.0 million advertisers through its flagship platform.