By Brad Hubbard | @bradhubbard | 11.23.2016
When Amazon.com enters a market, it usually wins. As it’s founder, chairman and CEO Jeff Bezos once said, ‘your margins are my opportunity’. Well now it’s become clear that they are going to enter the OTT live streaming sports realm one way or another. It’s been reported off and on for a couple of months now and it appears that Amazon is very, very serious about getting into this space and it could be a benefit to the cord cutting community if they do.
According to an article in the Wall Street Journal, Amazon.com made a play to be the sole provider of NBA League Pass. The NBA eventually passed on the idea and so did the NFL when it gave it’s live streaming rights for Thursday Night Football to Twitter. Now Amazon.com appears to be going after less ‘mainstream’ North American sports. Things like the Cricket Premier League and rugby.
This is good news for sport cord cutters. Amazon.com has a history of eating costs for the long term benefit of having you buy more stuff because you are a Prime member. That means that odds are if Amazon.com is able to bag an MLS or NBA or NHL package, it would probably be included your Amazon Prime subscription.
Think about that for a minute. If you live in Chicago and you are an LA Lakers fan, you could see the out of market games via your Amazon and not pay anymore because you have a Prime account.
This, I believe, is far off. I think a closer more appropriate strategy for all parties involved is for Amazon.com to go after the college conferences. For example, ACC, Big Ten, Pac 12 and Mountain West. These conferences pretty much own their rights, especially the Pac 12, to cut deals beneficial to them and not college football as a whole. Most have signed new deals with the major broadcasters in the past few years but that doesn’t mean that there are not ways for them to join forces with Amazon.com barring the price is right.
Another possibility is that Amazon becomes a MLBAM (BAM) competitor. While I don’t believe this is the case it’s certainly a possibility. Amazon has the backend that everyone uses, Amazon Web Services (AWS), and probably the best, cleanest user experience on the web in Amazon.com. Question really becomes, do they want to go this route because if they do, BAM and NeuLion should be worried.
The fact is that if Amazon.com sets it’s sights on a vertical, it usually enters it and it finds a way to win or be a major player in the space. They appear to want to enter the OTT live streaming market and in a big way. They have the capacity and capital to make it work. It now seems like only a question of time.