Insights English Premier League: Amazon makes its move

After months of speculation of ‘will it’ or ‘won’t it’, it was announced last week that Amazon had secured the final package of English Premier League football broadcasting rights in the UK. The package grants Amazon exclusive live rights to 20 matches per season, including bank holiday fixtures, in addition to weekly highlights for three years commencing from the 2018/19 season.

Amazon will initially stream the matches via Amazon Prime Video in the UK at no extra cost to Prime subscribers. It remains to be seen whether Amazon will eventually leverage an additional charge on Prime subscribers (replicating the model employed by BT Sport when it first entered this market) or even create a separately paid-for dedicated sports Prime Video service.

Amazon is the first internet-only, non-pay-TV broadcaster (in the traditional sense) to attempt to disrupt the Premier League sports rights market and, whilst only securing a small package of games, this represents another example of Amazon’s push into live sports broadcasting after its acquisition of ATP tennis and NFL football games.

It is obvious that Amazon’s main reason for doing the deal is to drive uptake of, and lock people in to, Prime and get them to spend more generally. It is also a way in which Amazon Prime Video can effectively differentiate itself from its main competitor, Netflix (which does not as yet own any live sports rights).

Amazon will however face challenges. It will be interesting to see if Amazon is able to match the production value and peripheral associated content provided in relation to Premier League matches by the incumbent players, Sky and BT. Furthermore, there will be huge technical and infrastructural challenges that will necessarily arise with having millions of viewers attempting to stream the same content at the same time from the same website.

At this stage, the deal poses no immediate threat to Sky and BT whom together retain the lion’s share of live Premier League rights in the UK. However, over the course of the next three years, given the vast amount of data regarding spending and watching habits that Amazon will collect from its subscribers, Amazon will be in a strong position to decide whether to try to increase its Premier League live rights package. Other non-pay TV broadcasters such as Apple, Facebook and Netflix will be watching with interest and success by Amazon during the three years of the deal may entice these players to bid at the next Premier League auction.