For the right to stream the broadcast feed of eleven NFL
games to its Prime Video Service subscribers this fall, Amazon paid the League
$50 million or $4.55 million per game.
For the Thursday night game (9/28) between the Chicago Bears and Green
Bay Packers, the streaming service averaged 372K viewers, or .6% of Prime members
and approximately 2.5% of the 15M+ in total who viewed the game on CBS, the NFL
Network, and other digital platforms. If
you divide the game’s programming cost by the number of viewers, it comes to approximately
$12.
So, what is the per viewer cost threshold
that Amazon would have to get to that would support the continuation of paying
for and streaming live sporting events? Will this be a short-term (failed) experiment
or a long-term winner for the firm? I’d
never bet against Amazon, but I’m not sure about this one.
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