Amazon.com, Inc. sees big opportunities in live sports streaming. The e-commerce giant is reportedly looking to acquire rights to stream live sports. According to a report from Bloomberg, the e-commerce company wants to live stream soccer, rugby, tennis, golf, and auto racing. The publication said that Amazon is “in discussions with potential customers” in order to try to license the rights to stream live sports events.
Two months, Twitter inked a deal with Sky Sports to show Premier League football videos this upcoming season. The social media company is also spending about $10 million to live stream 10 NFL games.
Amazon Betting on Sports Content
The Bloomberg report suggested that Amazon is interested in streaming sports events with a “global appeal” in a bid to attract a wider audience. According to the report, the e-commerce company is also eyeing domestic sports like baseball and basketball.
Citing Bloomberg report, Fortune reported that Amazon wants to buy the rights to a variety of sports events, including the French Open tennis championship and professional rugby matches. The company is also planning to live stream soccer games and other popular U.S. sports, such as basketball.
The report also said that Amazon.com, Inc. picked a former Sports Illustrated executive James DeLorenzo to lead its sports division. The company also hired Charlie Neiman, a former YouTube executive, to manage sports partnerships and business development.
Streaming sports content is part of the -commerce company’s massive content push. Live sports streaming presents an opportunity for the company “on a front that both Netflix and Apple have yet to tackle,” according to the Fortune report.
During the recent earnings call, CFO Brian Olsavsky said that Amazon is planning to triple the amount of original content over the rest of the year. The company streams its original content for Prime Video members.
How Live Sports Streaming Would Benefit Amazon?
In a detailed report published in Seeking Alpha, Quinn Foley sheds a light on how streaming live sports would benefit the e-commerce giant.
The report explains that the e-commerce would benefit from live sports streaming in three ways. First, the company would be able to strengthen the competitive position of Prime Video. Second, sports would attract customers to Amazon Prime, a paid membership program that gives customers access to streaming video, music, e-books, free shipping and other deals. Third, live sports streaming would help the company to penetrate international markets, which is still a big challenge for the company.
According to the report, live sports streaming can distinguish Prime Video from its main competitors, Netflix and Hulu, who focus on TV shows and movies. The report also mentions that the company is targeting sports with a wide global following, and wrapping up sports with Prime Video would make it stand out more from Netflix in markets such as Europe, India and Australia where soccer, cricket, and rugby are particularly popular.
Shares of Amazon.com, Inc. are up more than 10% for the year. The stock has gained 43.75% during the past 12 months.