Amazon and Twitter are the latest companies in pursuit of sports rights to air content on their platforms but each company seems to be taking a different approach to the matter.
First, it is quite unusual that both Amazon and Twitter are pursuing sports right given their traditional domains. One is in social media while the other one is in e-commerce. However, the past few months have seen both firms push aggressively into media rights. Twitter seems to be more interested in rights for less popular sports such as the National Lacrosse League (NLL). Amazon on the other hand, is pushing aggressively for rights to major sports such as tennis and American football.
Why is there a difference in the strategies used by the two companies?
One thing that is certain is that both Amazon and Twitter are interested in getting more video content on their platform. Amazon is looking to popularize its Prime online streaming platform by sourcing content. Securing rights to major sports is thus one great way to make sure that it is an attractive offering to Amazon Prime subscribers.
Advertising revenue is also a key factor behind the push for video content on both platforms. This is because such content attracts advertisers, thus boosting ad revenue. Twitter has particularly been riding on sports rights to attract more advertisers on its microblogging platform which has been struggling with stagnated user growth. Amazon is also at an advantage because it has the capacity to purchase rights for major leagues which are usually more expensive than those of the less popular sports.
Twitter’s key strength is that it provides an opportunity for sports associations to reach more viewers. PGA officials seem to have been sold on the idea and Jeff Price, the chief commercial officer of the PGA America announced a month ago that the USPGA would no longer be exclusive to Sky.
“Broad distribution, multi-platform distribution is the key objective for us,” stated Price.
Social media has been one of the best ways to reach massive audiences and it looks like sports organizations are now becoming more open to this idea. Fortunately for Twitter, it has already positioned itself to reap the benefits.