With DirecTV’s rights to NFL Sunday Ticket coming on the edge of expiry in 2022, the future home of this streaming service is yet to be decided. Amazon has a serious interest in buying the rights of the NFL Sunday Ticket. The tomorrow of DirecTV still remains on the top as it signed a new $113 billion contract with CBS, Fox, NBC, ESPN/ ABC, and Amazon for the following 11 years on March 18, 2021.
For those who are uninformed of NFL Sunday Ticket, it is a streaming service that is anchored by DirecTV
. It consists of 32 national teams from the US. These games can be blacked out if they air locally over the air. Blackout in NFL means that any broadcaster getting a signal in any area within a distance of 75 miles radius of the NFL stadium can air it. However, it is only possible if it is a road game or when the game is sold out 75 hours before the start time.
DirecTV was separated from the parent company AT&T in 1994. Since its inception, it has been able to hold the broadcast rights for NFL Sunday Ticket. This ticket permits the fans to support their NFL team, regardless of their location. DirecTV lets users have access to more exclusive games that are not available on regular television channels. It charges $300 for a package as an add-on.
According to CNBS, from the last seven seasons, DirecTV has been paid $1.5 billion per year for the ‘Sunday Ticket.’ NFL is expecting to double this in the package beginning in the followed-up year, which will make people watch NFL Sunday Ticket games on Firestick
even better. Well, watching it is an absolute necessity for all NFL fans, isn’t it? This NFL Sunday ticket is a great investment to get a compatible app to stream whatever games are happening around you if you are away from home. Firesticks and other devices can really double your fun with a bigger screen to watch in.
DirecTV can consider itself competing, but it still lacks a balance sheet compared to Apple and Amazon. Their market valuations are above $2 trillion. The satellite TV provider has lost quite a few customers and money in the past few years. So it is not going to be the same kind of win-win situation this time. The current price stands to be $300, but it would need 5 million more subscribers to equalize with other competitors like Amazon, and Apple. With the addition of Monday, Thursday, and Saturday night games becoming increasingly popular, Sunday nights have been diluted over the former years, as per the Executives at DirecTV.
DirecTV is still ready to use ‘Sunday Ticket’ as its great failure, if only it could be able to keep all the subscribers of NFL into the year-long customers to itself. The payment from the offseason of the NFL can make up for the loss of DirecTV.
Amazon has started acquiring some of the NFL streaming rights in just a few years. It makes Amazon a potential home for Sunday Night Tickets. Presently, Amazon has streaming rights for Thursday Night Football and Monday Night Football. This American multinational conglomerate has been rumored to seek more rights to live sports. It has agreed to pay the NFL about $1 billion every year in March if it lets them air Thursday Night Football from 2022. These games will be streamed on Amazon Prime Video.
Mike Hopkins, SVP of Prime Video and Amazon Studios, mentioned in March, “NFL games are the most-watched live program in the United States, and this unprecedented Thursday Night Football package gives tens of millions of new and existing Prime members exclusive access to must-watch live football on Prime Video.”
Amazon is going to distinguish itself in terms of more than just traditional broadcasting. It is going to offer alternate announcers and more interactive in-game replays, which is been considered as of now “X-Rays.” Fans are passionate enough to love these exclusive features provided by Amazon, so this is going to be a hit for them.
Amazon would be benefitted from this, as sports will allow it to expand its reach. Previously it has been able to expand the business by acquiring companies like Whole Foods, Ring, and Zappos. The NFL has a history of partnering with broadcast partners. This is how it has been able to establish relationships with them and conquer its way.
Amazon can get an extensive amount of brand-new internet traffic on Sundays, it is going to be something that was never seen before. Gamers and fans are already upvoting for Amazon. Apple could also be a great competitor. DirecTV managed to extract fans on NFL seasons, but these subscribers did not last throughout the year.