Social media site Twitter has signed new deals with multiple sporting and entertainment agencies to stream live shows on the site in the nearest future. The deals include an agreement with The All England Club to stream tennis event Wimbledon highlights and clips.
Another agreement was reached with IGN to stream San Diego Comic Con 2017. Other notable agreements include deals with the Canadian Football League to stream a weekly live show, Sela Sport to stream matches of the 2017 Arab Championship club football tournament, and the National Women’s Hockey League (NWHL) to stream 19 games for the 2017-18 season.
Streaming seem to be a relatively new but productive revenue source for twitter as the company has recently made strides to improve its streaming capabilities. This is not only in sport and entertainment as the company has also signed a deal with BBC news to stream its news programing. Five UK election Specials in May were streamed on the site as a consequence of this partnership. The company also partnered with Bloomberg to stream its news every day.
The company would be hoping that the latest deal would help to reduce the effect that the NFL streaming rights loss would have on the company’s revenue. The company lost rights to stream the NFL to Amazon who paid $50 million to 10 Thursday night NFL games for the 2017 season. The amount paid by Amazon is $40 million more than what Twitter paid for the same deal in 2016. Amazon would charge $2.8 million for ad packages emanating from the deal.
In recent times, most of Twitter revenue has been generated from its streaming business. Running ads before, during or after life streams have proved to be a profitable business model for the company as the sporting events builds the appropriate audience needed to sell in different demographics.
Twitter have struggled with financial instability for quite some time but are gradually beginning to generate consistent profit to move towards financial stability. The new deals would also mean that users of the social networking site can stream matches for free and post tweets as comment while the event is still on.