cageymaru
Fully [H]
- Joined
- Apr 10, 2003
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Amazon has bid on Disney's 22 regional sports networks that it gained when it purchased television and movie assets from Fox. The Justice Department made Disney divest itself of those properties to close the deal on the Fox assets. While Fox hasn't placed a bid for the 22 regional sports networks in round 1 of the sale, it still has a chance to place a bid in round 2. Some analysts think that Amazon purchasing the channels is a bad omen for cable TV as Amazon could roll the channels into its Amazon Prime package as added value. Also it would give Amazon access to 44 Major League Baseball games and the YES Network (New York Yankees games) to broadcast as social media companies like Facebook and Google seek to procure more live sporting events to attract consumers to their services. Live sporting events are one of the main reasons why cable TV customers subscribe to the service.
Selling sports rights to a giant like Amazon, with a market capitalization of more than $700 billion, could spur other technology giants like Apple, Google and Facebook to bid on sports rights to stay competitive. The sports rights for the big professional leagues are locked up through 2020. Traditional media players such as Disney, CBS, Comcast's NBC and AT&T's DirecTV and Time Warner dominate the landscape. When current rights deals expire, tech giants could conceivably outbid the traditional media players for exclusive or digital-only rights, assuming the leagues themselves are willing to abandon traditional partners.
Selling sports rights to a giant like Amazon, with a market capitalization of more than $700 billion, could spur other technology giants like Apple, Google and Facebook to bid on sports rights to stay competitive. The sports rights for the big professional leagues are locked up through 2020. Traditional media players such as Disney, CBS, Comcast's NBC and AT&T's DirecTV and Time Warner dominate the landscape. When current rights deals expire, tech giants could conceivably outbid the traditional media players for exclusive or digital-only rights, assuming the leagues themselves are willing to abandon traditional partners.