Amazon's Bid for Regional Sports Networks is Plan to Boost Prime Members
*By Carlo Versano*
Amazon is reportedly looking to expand its foothold in live programming, with an eye on the 22 regional sports networks that Disney ($DIS) must spin off as part of its acquisition of 21st Century Fox.
CNBC first [reported](https://www.cnbc.com/2018/11/20/amazon-threat-to-buy-sports-rights-should-freak-out-media-companies.html) that Amazon ($AMZN) was a bidder for the portfolio of RSNs, which could be worth as much as $25 billion.
Whether or not Amazon ultimately ends up with the channels is almost beside the point, according to analysts and reporters who spoke to Cheddar Tuesday.
Tech companies encroaching on a programming segment that has long thrived on billion-dollar exclusivity deals between networks and cable companies is enough to worry any traditional media executive. Live sports is one of the few remaining strengths of the legacy media ecosystem, said Rich Greenfield, media analyst at BTIG Research. For many, sports are the only reason they haven't already cut the cord. If a big tech company were able to siphon off a large enough piece of that viewership pie, "the whole Jenga game collapses."
For Amazon, it would be the extension of a grand strategy that has been both simple and consistent: drive more Prime subscriptions. Todd Spangler, an editor at Variety who covers media, said "the whole purpose here is to get you to buy more stuff."
Because regional sports networks are beloved by serious sports fans as opposed to casual observers, Amazon's ownership of them could cause even the most reluctant Amazon shopper to sign up for Prime ー if that's what it takes to watch their favorite team.
Still, upwards of $25 billion is a lot to spend on a "nice-to-have" feature, as Spangler said ー even for Amazon. And Greenfield pointed out that this would not be the first time a FAANG member dabbled in sports programming. Google ($GOOGL) lost out to AT&T's ($T) DirecTV for rights to the NFL Sunday Ticket in 2014 even though it was the highest bidder. And Amazon has a deal in place with the Premier League to stream games in the UK.
Sports rights, among the most expensive media properties in existence, were long the holy grail for broadcast networks, and allowed cable companies like ESPN to become dominant forces in media. But as viewing habits change, tech companies, armed with cash and billions of built-in customers, could soon become the worldwide leaders.
For full interview [click here](https://cheddar.com/videos/btigs-rich-greenfield-regional-sports-solves-a-problem-for-amazon).
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
Unreal Snacks CEO Kevin McCarthy shares how dye-free candy is leading the sweets revolution—just in time for what could be a record-breaking Halloween 2025.