US Markets
Friday, November 24th, 2023 3:05 pm EDT
Key Points
- The NFL’s decision to exclusively stream its first-ever Black Friday game on Amazon Prime Video instead of traditional broadcast or cable channels signifies the ongoing challenges faced by linear TV, marked by declining ad revenue and a shift in consumer behavior toward cutting the cable cord.
- The Black Friday game, an expansion of Amazon’s “Thursday Night Football” deal with the NFL, aims to become an annual tradition. The streaming broadcast on Amazon Prime Video includes QR codes linking to Black Friday deals, leveraging the game to boost Amazon’s e-commerce sales. The move reflects the broader trend of live sports programming transitioning from cable to streaming platforms, with examples like Amazon’s deal and YouTube TV’s “NFL Sunday Ticket” package.
- While the streaming trend gains momentum, sports programming, particularly from ESPN, remains crucial in sustaining linear television for the time being. ESPN’s dominance in sports programming is highlighted, and its impending direct-to-consumer service launch could potentially accelerate cord-cutting, posing a significant threat to traditional cable bundles. The article also raises concerns about media companies, like Fox, that have not embraced streaming and may face vulnerability amid the changing media landscape.
The National Football League (NFL) is set to break tradition by streaming its first-ever Black Friday game exclusively on Amazon’s Prime Video, expanding on the “Thursday Night Football” deal between Amazon and the NFL. This move away from traditional broadcast or cable channels reflects the ongoing challenges faced by linear TV, marked by declining ad revenue and customers opting to cut the cable cord.
The Black Friday game, featuring the Miami Dolphins and the New York Jets, aims to establish a new Thanksgiving tradition, leveraging Amazon’s 11-year deal for “Thursday Night Football.” The streaming platform has contributed to a 6% increase in NFL viewership since the previous year. By streaming the game the day after Thanksgiving, Amazon hopes to capture holiday viewership, potentially benefiting from the surge observed in the previous year.
Executives from the NFL and Amazon envision the Black Friday game becoming an annual tradition. In a strategic move to boost Amazon’s e-commerce sales, QR codes featuring links to Amazon’s Black Friday deals will be displayed at the bottom of the screen during the streaming broadcast. Additionally, a postgame concert by country music icon Garth Brooks is planned as an exclusive feature.
This shift to streaming platforms for live sports programming is not unique to the NFL, as demonstrated by examples such as Amazon’s “Thursday Night Football” deal and YouTube TV’s “NFL Sunday Ticket” package. Other streaming services are also embracing live sports, with Warner Bros. Discovery introducing its Bleacher Report Sports Add-On Tier in October.
While the trend toward streaming gains momentum, sports programming remains a key factor in sustaining linear television, as evident in the resurgence of linear TV during August and September, driven by the return of college and professional football. ESPN, a dominant force in traditional sports programming, has contributed significantly to this trend, capturing a “modest increase” in ad revenue despite an overall decline in TV revenue.
However, the impending launch of ESPN’s direct-to-consumer service could pose a substantial threat to linear TV. Disney CEO Bob Iger announced plans to launch a direct-to-consumer ESPN flagship by 2025, potentially encouraging sports fans to abandon traditional cable bundles. The shift to streaming is reshaping the media landscape, with challenges anticipated for media companies, like Fox, that have not made a significant foray into the streaming world.
Despite the potential disruption, some industry experts believe that a reimagined pay TV bundle, incorporating streaming products, could be the future. This is exemplified by recent agreements, such as the Disney-Charter deal, where streaming services like Disney+ and ESPN+ are included in traditional cable packages.
The article concludes by highlighting the vulnerability of media companies that have not embraced streaming and suggests potential challenges for Fox, emphasizing the importance of adapting to the evolving media landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/24/nfl-black-friday-game-jets-vs-dolphins-on-amazon-prime-not-on-tv.html
