![]() Most of Amazon's current ad sales are focused on producing strong sales conversions when a user clicks on an ad. ![]() Moreover, Amazon can sell those streaming video ads alongside its other ad inventory as it looks to expand to more brand advertising from direct response. The more eyeballs it can attract to those streams, the more it can charge. While there's minimal ad inventory associated with the Sunday Ticket broadcasts, Amazon will have a lot of ad inventory to sell during its other sports broadcasts. The important factor that makes Sunday Ticket a better fit for Amazon than Apple is advertising. Amazon also owns a number of other sports rights, so Sunday Ticket could be a gateway for sports fans to discover all of what Amazon has to offer. ![]() Adding Sunday Ticket could bolster viewership of the important Thursday Night property. Amazon already has a deal with the NFL as the exclusive home of Thursday Night Football starting with the 2022 season. The case for AmazonĪmazon seems like a much better fit. So while sports rights could broaden the appeal of Apple's streaming service, the company may be better off spending on more general entertainment content. This suggests it's not the most efficient use of funds to grow a streaming service. Sunday Ticket could add 5% to 10% more subscribers for Apple TV+.īut the package price would also equal all of Apple's 2021 content budget for the streaming service. Apple hasn't released subscriber numbers for the service, but it reportedly had less than 20 million last summer. It makes a bit more sense compared to signups for its fledgling Apple TV+ streaming service. Instead, they'll need to sell enough of their other products and services to make up for the losses associated with the expensive sports deal. Without the requirements to subscribe to an expensive pay-TV service, both would have a larger addressable market.īut odds are Amazon or Apple will take a loss on selling NFL Sunday Ticket subscriptions to customers via their streaming platforms. So Amazon or Apple would have to sell a lot more subscriptions to the service than DirecTV ever did in order to make the deal worthwhile. In fact, when AT&T ( T 0.48%) announced its plans to spin off its video unit, it said it would eliminate $2.5 billion in NFL Sunday Ticket losses it accrued since acquiring DirecTV in 2015. But the satellite TV provider wasn't selling nearly $1.5 billion worth of subscriptions every year. DirecTV last agreed to pay about $1.5 billion per year for the rights to the package. The rights to NFL Sunday Ticket have historically been a loss leader.
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