Quote:
Originally Posted by jfman
None of these look like particularly efficient mechanisms of recouping £4.5bn and making profit over and above that. I assume their calculators weren't working before they decided to not make a substantive bid for the rights in 2018.
Easy to give something away when you got the rights for peanuts.
The mistake is believing that Amazon are some kind of benign philanthropic organisation out there to give away free football, or that even if they were the UK would be their main target market and not the US, Germany or other major markets. Anyone spending £4.5bn on football rights is going to recoup the majority of that £4.5bn through selling a premium sports subscription.
Amazon already have 6.7m Prime subscribers - the low hanging fruit - and this number would need to be substantially driven up as a 'loss leader' to recoup the cost of the rights.
|
Exactly!
Amazon’s global content budget for 2020 is estimated to be $7 Billion... so they will then go and spend another $2 Billon or so per year on top? For one territory alone? And give it away in the Prime Subscription and bank on selling some merchandise as a way of recouping? Plus not forgetting that selling highlights and free to air matches would likely be for the EPL to sell and not Amazon?
I’ll never say never but let’s not be silly that somehow they would then give that kind of investment away on the possibility - the possibility - of an uptick of new Prime subs and a few football tops! 😂😂 You spend that kind of money on football because you intend to make it back!
---------- Post added at 18:13 ---------- Previous post was at 18:03 ----------
Also worth reading this to get an idea about Amazon’s approach...
https://www.sportsbusinessdaily.com/...rts-media.aspx