Amazon (NASDAQ:AMZN) is reportedly engaged in discussions with Diamond Sports Group to enhance sports content on Prime Video. The negotiations involve a strategic investment in Diamond Sports and a multi-year streaming partnership. If the deal materializes, Prime Video will exclusively stream Diamond’s extensive catalog, covering games of 40 major sports teams across the United States.
Diamond Sports holds local rights to a significant portion of Major League Baseball, the National Basketball Association, and National Hockey League teams, making it a valuable addition to Prime Video’s offerings. This strategic move underscores Amazon’s commitment to strengthening its presence in the competitive sports streaming landscape.
In addition to this initiative, Amazon continues to build its relationship with the National Football League (NFL). The company recently introduced Prime Vision, an alternate stream for Thursday Night Football (TNF), featuring real-time stats and analysis graphics on the screen during the game.
The expansion of sports content is expected to enhance Prime Video’s viewership, driving growth in its subscriber base and subsequently boosting subscription revenues. In the third quarter of 2023, Amazon reported a 14% increase in subscription services sales, reaching $10.2 billion. The company’s model predicts 2023 subscription sales of $41.3 billion, reflecting a 17.4% growth from 2022.
While Amazon faces competition from streaming giants like Disney, Comcast, and FuboTV in the sports streaming market, its focus on live sports content is expected to maintain a competitive edge. Disney’s ESPN+ streams various sports tournaments, while NBCUniversal’s Peacock offers Sunday Night Football and Premier League Soccer. FuboTV, known for diverse sports coverage, recently became the Official Streaming Service Partner for the Women’s National Basketball Association’s Chicago Sky.
Amazon’s emphasis on live sports streaming is anticipated to contribute to its competitive position, and the consensus estimate for 2023 indicates year-over-year growth of 11.04%, pegged at $570.75 billion.
Featured Image: Unsplash @ Christian Wiediger
Author Stephanie Bédard-Châteauneuf