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Tech giants likely to contend for sports rights in the near term
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AllTideUp Offline
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Tech giants likely to contend for sports rights in the near term
Interesting article that makes a few interesting claims about where things are going sooner than later:

Quote:We believe the next 12 to 18 months is a pivotal window for platforms like Facebook and Amazon, among others, to aggressively secure the rights to various professional sports programming, especially as the Disney/ESPN launch of ESPN Plus over the coming year will be at the epicenter to {Disney CEO Bob Iger’s} master streaming initiatives and ‘raise the stakes’ for securing future sports content in our opinion,” said Daniel Ives, head of technology research at GBH Insights.

Quote:According to a previous Wall Street Journal report, Facebook plans to invest as much as $1 billion in live sports content this year alone.

Quote:Ives estimates Amazon could invest closer to $5 billion on sports content. They’ve already streamed NFL games, spending $50 million on last year’s Thursday Night Football package, which Jim DeLorenzo, head of Amazon Sports, believes was just a stepping stone to acquiring larger broadcast rights. “This was really our first step into distributing live sporting events at scale on a global basis,” DeLorenzo said.

That's a shorter timetable than I think most of us were considering.

We tend to think in terms of college sports rights around here and for good reason, but if entities like Amazon and Facebook start establishing themselves with pro rights in the next couple of years then their platform could really gain some steam before it's time for some of these major college sports deals.

Here's something else to consider...

I'm spitballing a little here, but it's widely known that American colleges do recruit students from overseas. We have the best university system in the world after all so it's only natural that we attract students from all over for various reasons.

Now, entities like Facebook and Amazon are not really limited by cable or satellite TV technology in the same way traditional networks are. The tech companies rely purely on an internet infrastructure to operate and it's not just that that reduces costs, but it also opens up more markets overseas.

Especially considering how American education is changing, what if the schools/conferences start seeing these streaming services with global reach as a way to market to students overseas? Could that give them a leg up in negotiations? Would it pay off for college conferences to tailor some of their sports content to intrigue international audiences so as to catch their attention more easily?
(This post was last modified: 03-14-2018 02:39 PM by AllTideUp.)
03-14-2018 01:58 PM
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JRsec Offline
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RE: Tech giants likely to content for sports rights in the near term
(03-14-2018 01:58 PM)AllTideUp Wrote:  Interesting article that makes a few interesting claims about where things are going sooner than later:

Quote:We believe the next 12 to 18 months is a pivotal window for platforms like Facebook and Amazon, among others, to aggressively secure the rights to various professional sports programming, especially as the Disney/ESPN launch of ESPN Plus over the coming year will be at the epicenter to {Disney CEO Bob Iger’s} master streaming initiatives and ‘raise the stakes’ for securing future sports content in our opinion,” said Daniel Ives, head of technology research at GBH Insights.

Quote:According to a previous Wall Street Journal report, Facebook plans to invest as much as $1 billion in live sports content this year alone.

Quote:Ives estimates Amazon could invest closer to $5 billion on sports content. They’ve already streamed NFL games, spending $50 million on last year’s Thursday Night Football package, which Jim DeLorenzo, head of Amazon Sports, believes was just a stepping stone to acquiring larger broadcast rights. “This was really our first step into distributing live sporting events at scale on a global basis,” DeLorenzo said.

That's a shorter timetable than I think most of us were considering.

We tend to think in terms of college sports rights around here and for good reason, but if entities like Amazon and Facebook start establishing themselves with pro rights in the next couple of years then their platform could really gain some steam before it's time for some of these major college sports deals.

Here's something else to consider...

I'm spitballing a little here, but it's widely known that American colleges do recruit students from overseas. We have the best university system in the world after all so it's only natural that we attract students from all over for various reasons.

Now, entities like Facebook and Amazon are not really limited by cable or satellite TV technology in the same way traditional networks are. The tech companies rely purely on an internet infrastructure to operate and it's not just that that reduces costs, but it also opens up more markets overseas.

Especially considering how American education is changing, what if the schools/conferences start seeing these streaming services with global reach as a way to market to students overseas? Could that give them a leg up in negotiations? Would it pay off for college conferences to tailor some of their sports content to intrigue international audiences so as to catch their attention more easily?

Most foreign students are here for post graduate work. They don't have the time to be interested in sports, so using streamed sports as a recruitment tool isn't as important as a draw to foreign nationals. Your research standing in the discipline they are interested in is the draw.

What crossed my mind on this article is that 18 months is about the time until the ACCN launches and I still strongly suspect ESPN will want to increase the value of that enterprise with additions. Since I strongly suspect that Big 12 schools would have to be involved to make it more successful then it could impact the SEC in making those accommodations more feasible. It is after all ESPN's best bet to be able to grab that content and renegotiate and extend their contracts before the Amazons of the world come calling.
03-14-2018 02:13 PM
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AllTideUp Offline
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RE: Tech giants likely to contend for sports rights in the near term
(03-14-2018 02:13 PM)JRsec Wrote:  
(03-14-2018 01:58 PM)AllTideUp Wrote:  Interesting article that makes a few interesting claims about where things are going sooner than later:

Quote:We believe the next 12 to 18 months is a pivotal window for platforms like Facebook and Amazon, among others, to aggressively secure the rights to various professional sports programming, especially as the Disney/ESPN launch of ESPN Plus over the coming year will be at the epicenter to {Disney CEO Bob Iger’s} master streaming initiatives and ‘raise the stakes’ for securing future sports content in our opinion,” said Daniel Ives, head of technology research at GBH Insights.

Quote:According to a previous Wall Street Journal report, Facebook plans to invest as much as $1 billion in live sports content this year alone.

Quote:Ives estimates Amazon could invest closer to $5 billion on sports content. They’ve already streamed NFL games, spending $50 million on last year’s Thursday Night Football package, which Jim DeLorenzo, head of Amazon Sports, believes was just a stepping stone to acquiring larger broadcast rights. “This was really our first step into distributing live sporting events at scale on a global basis,” DeLorenzo said.

That's a shorter timetable than I think most of us were considering.

We tend to think in terms of college sports rights around here and for good reason, but if entities like Amazon and Facebook start establishing themselves with pro rights in the next couple of years then their platform could really gain some steam before it's time for some of these major college sports deals.

Here's something else to consider...

I'm spitballing a little here, but it's widely known that American colleges do recruit students from overseas. We have the best university system in the world after all so it's only natural that we attract students from all over for various reasons.

Now, entities like Facebook and Amazon are not really limited by cable or satellite TV technology in the same way traditional networks are. The tech companies rely purely on an internet infrastructure to operate and it's not just that that reduces costs, but it also opens up more markets overseas.

Especially considering how American education is changing, what if the schools/conferences start seeing these streaming services with global reach as a way to market to students overseas? Could that give them a leg up in negotiations? Would it pay off for college conferences to tailor some of their sports content to intrigue international audiences so as to catch their attention more easily?

Most foreign students are here for post graduate work. They don't have the time to be interested in sports, so using streamed sports as a recruitment tool isn't as important as a draw to foreign nationals. Your research standing in the discipline they are interested in is the draw.

What crossed my mind on this article is that 18 months is about the time until the ACCN launches and I still strongly suspect ESPN will want to increase the value of that enterprise with additions. Since I strongly suspect that Big 12 schools would have to be involved to make it more successful then it could impact the SEC in making those accommodations more feasible. It is after all ESPN's best bet to be able to grab that content and renegotiate and extend their contracts before the Amazons of the world come calling.

Currently, most international students are grads, yes. But why not try to attract more undergrads if the goal is to increase enrollment numbers and revenue? If more domestic students choose trade schools in the next generation then this sort of approach could help soften the blow.

If you have a platform that can reach the globe then you have a global audience for whatever your intentions might be. And without having to worry about occupying a strict broadcast schedule on a linear network, the schools have the ability to market themselves in different ways beyond sports. If nothing else, it's a way to gain online students for schools that want to broaden their offerings in that area.

But overall, yes, what traditional networks need to be worried about is a company like Amazon coming in and stealing their market share.

It would behoove ESPN to act soon and keep companies like Amazon and Facebook from making a splash in pro sports and proving they can deliver money and new audiences.
03-14-2018 03:14 PM
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