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Old 13-07-2019, 15:32   #5596
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Re: Netflix/Streaming Services

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Originally Posted by jfman View Post
What prevents them bidding is no plan for a return on investment. How many times do I have to repeat it? They know it themselves (hence no meaningful bids and Sky getting more for less than in the previous auction).
How do you know that Amazon doesn't have a plan? Where is your evidence for this? You are making so many suppositions with this theory of yours and frankly, I don't find your conclusions to be credible.

I accept it is your view, but you present this as fact. I know full well that Amazon may not go down the route I have put forward, I am simply speculating on what might happen. But you are very dogmatic in saying that Amazon will not do this that one wonders what it is that makes you so sure.

It was not long ago that people on this forum were saying that Virgin would never get Prime onto its system because of the competition with its own channels, despite the fact that John Malone had already expressed his desire to see his cable companies becoming super aggregators of content.

Perhaps you just enjoy being perverse, in which case I will try not to spoil your fun too much!
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Old 13-07-2019, 15:59   #5597
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Re: Netflix/Streaming Services

If Amazon had a credible plan they'd have made a bid last time out, when the value of the rights fell overall. This has all been a myth peddled by Richard Scudamore, and others, to try to push the value of the rights up and it failed.

My confidence comes from the fact it's a lot of money that is difficult to recoup in such a short timeframe without the existing and established high ARPU customer base. Does your average Amazon prime customer, of which I am one, want to pay £40/50 a month for a TV package that includes the Premiership?

It then creates a model where Prime in the UK diverges from Prime in the rest of the world, a low cost fast delivery option with a TV/music add on. Unless of course they want to swallow up key content in those markets too, in which case you'd be into tens of billions a year on content.

So with £5bn, why England? why football?

They'd arguably get better value buying an existing media company it's content and customer base and integrating Prime into it's products.
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Old 13-07-2019, 16:11   #5598
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Re: Netflix/Streaming Services

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True, but there's another £1bn, and you're not selling 'must have' content to the rest of the world. You're selling the equivalent of La Liga to us.
Don't understand the £1bn comment, but on must have content, the premier league is not La Liga, it's the sporting equivalent of Hollywood and it has a massive fanbase across the globe and for many it would be must have.

There's loads of articles about this out there, but here's the first one that showed up on Google when I just looked up viewership figures:

https://contexts.org/articles/englis...de-popularity/
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Old 13-07-2019, 16:23   #5599
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Re: Netflix/Streaming Services

12 million people out of 7 billion is still minority interest content on any level. It's not going to massively influence provider choices around the world.
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Old 13-07-2019, 16:43   #5600
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Re: Netflix/Streaming Services

Quote:
Originally Posted by jfman View Post
If Amazon had a credible plan they'd have made a bid last time out, when the value of the rights fell overall. This has all been a myth peddled by Richard Scudamore, and others, to try to push the value of the rights up and it failed.

My confidence comes from the fact it's a lot of money that is difficult to recoup in such a short timeframe without the existing and established high ARPU customer base. Does your average Amazon prime customer, of which I am one, want to pay £40/50 a month for a TV package that includes the Premiership?

It then creates a model where Prime in the UK diverges from Prime in the rest of the world, a low cost fast delivery option with a TV/music add on. Unless of course they want to swallow up key content in those markets too, in which case you'd be into tens of billions a year on content.

So with £5bn, why England? why football?

They'd arguably get better value buying an existing media company it's content and customer base and integrating Prime into it's products.
A couple of things here.

Firstly, none of us, including Amazon probably, know whether they will make a massive bid for rights in the future. What they have done is dip their toes in the water and see what the temperature is like. If its favourable to them, then I suspect in three years time it will be gloves off and they will try and by up all the rights. Evidence of this will come beforehand if they start to lobby regulators and government about being allowed to buy all the rights.

Secondly, on customers and recouping costs. I think you know Amazon has a "few" customers and currently at least 200m prime customers. Who knows how many other customer credit card details they have, but I'd suggest it's a "few".

There's a massive up-sell potential in terms of traditional "old" linear tv advertising to more targeted methods... The data they have on customers must be immense and very valuable.

Finally, Look at what Amazon themselves have said about Prime. They want people to view it as another utility like a cable tv bill or water bill. Then extrapolate where they might go with this and look at how much other utilities like gas/electricity/water cost...

Whatever Amazon may pay out for rights in the future, if they choose to do so, I would expect they would get their bucks back ten fold.
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Old 13-07-2019, 16:52   #5601
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Re: Netflix/Streaming Services

No they have bought a package they obviously got so cheap as nobody else wanted it.
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Old 13-07-2019, 16:58   #5602
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Re: Netflix/Streaming Services

Quote:
Originally Posted by jfman View Post
12 million people out of 7 billion is still minority interest content on any level. It's not going to massively influence provider choices around the world.
It's rapidly increasing, especially in China. Even 2 million yanks are watching now:

https://www.premierleague.com/news/1225124

Don't forget Amazon already has 200+m prime customers to sell too.

---------- Post added at 15:58 ---------- Previous post was at 15:56 ----------

Quote:
Originally Posted by muppetman11 View Post
No they have bought a package they obviously got so cheap as nobody else wanted it.
It's a no brainer for them, though.

They see what interest they can get with this lesser package and decide whether they will make further bids for rights in the future. They may not, but by buying a package of matches, they have now shown their hand. They are interested, it's just a case of whether they stay interested or not.
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Old 13-07-2019, 17:04   #5603
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Re: Netflix/Streaming Services

They are looking to make Prime more appealing that's a whole world different to taking the lot.
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Old 13-07-2019, 17:11   #5604
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Re: Netflix/Streaming Services

Indeed it is, but there are multiple ways they can package the football and sell it, Amazon are good at selling stuff. I'm sure if they ever obtained global rights in the future, they might be able to sell a "few" football shirts, as but one easy example of how to make money from this.
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Old 13-07-2019, 17:12   #5605
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Re: Netflix/Streaming Services

So why haven't they captured NFL , NBA , MLB , NHL in any numbers ?
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Old 13-07-2019, 17:15   #5606
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Re: Netflix/Streaming Services

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So why haven't they captured NFL , NBA , MLB , NHL in any numbers ?
A question some members cannot answer even though its staring them in the face.
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Old 13-07-2019, 18:21   #5607
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Re: Netflix/Streaming Services

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A question some members cannot answer even though its staring them in the face.
After all, they could easily afford it.
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Old 13-07-2019, 18:22   #5608
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Re: Netflix/Streaming Services

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So why haven't they captured NFL , NBA , MLB , NHL in any numbers ?
Not sure I understand the point you are making here and besides I know nothing about these sports. Does Amazon have rights for them??

Edit: Just came across this article:

http://www.sportspromedia.com/news/a...on-recruitment

and the dipping the toes into water remark came from here:

https://deadline.com/2019/02/amazon-...ca-1202556831/

From the last paragraph of that article:
Quote:
The next two years are likely to be a pivotal window for digital platforms in securing major sports rights – particularly 2021, when the NFL, MLB and NHL media rights deals mostly end.
So lets wait and see what happens in 2021 with regards to the rights to those American sports.
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Old 13-07-2019, 18:38   #5609
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Re: Netflix/Streaming Services

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After all, they could easily afford it.
Of course they could but Amazon adhere to a clear business model and only a fool and his money would part with that type of money unless it was profitable.
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Old 13-07-2019, 19:19   #5610
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Re: Netflix/Streaming Services

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Of course they could but Amazon adhere to a clear business model and only a fool and his money would part with that type of money unless it was profitable.
Sky obviously think it's profitable. BT obviously think it's profitable. So why would Amazon not be able to make a profit out of it?
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