Amazon Exits Premier League Rights Amid Rising Costs | Image Source: www.nytimes.com
LONDON, December 26, 2024 – In a movement that marks the end of an era, Amazon Prime will no longer retain transmission rights for the English Premier League (EPL) after six years of association ending with this week’s festive round. The decision means a change in the competitive landscape of sports broadcasting in the UK, as traditional players such as Sky Sports and TNT Sports claim the field. According to the New York Times, Amazon’s production results from transmission costs that no longer align with the current giant business model.
Jeff Stelling and Chris Kamara Meeting for Boxing Day Coverage
While Amazon is asking for the EPL, fans are treated at a nostalgic meeting of Jeff Stelling and Chris Kamara on boxing day. Kamara, known for her camaraderie with Stelling during her time at Sky Sports’ Soccer on Saturday, will provide coverage of Nottingham Forest against Tottenham Hotspur, while Stelling studio anchor. This marks the first collaboration of the duo in two years and highlights the recovery of Kamara from recent health problems. For the Amazon public, the meeting is an appropriate way to close its Premier League chapter.
Amazon Strategic Retreat
Amazon’s decision to waive EPL rights highlights the financial obstacles to competition in the UK sports broadcasting market. The latest four-year national television agreement of next season, valued at £6.7 billion, includes up to 270 live games per year, all guaranteed by Sky Sports and TNT Sports. Unlike the 20 smaller games in Amazonia previously held, the new minimum offer of 56 games per season would have cost much more – reported up to ten times the current annual investment in Amazonia £30 million. As François Godard of Enders Analysis said: “If you want to challenge Sky, you have to put a lot of money on the table. »
A successful but limited career
Amazon first entered the EL market in 2018 with a three-year agreement covering two specific series of 10 games per season, designed to match the busiest buying periods of Black Friday and Christmas. According to analyst PP Foresight Paolo Pescatore, the rights package was an “opportunistic movement” that helped Amazon boost subscriptions and consumer engagement. The service experienced records in its first transmissions in December 2019 and reached an audience of more than four million in large-scale games, including Manchester City’s 3-1 win over Arsenal in February 2023.
Despite its success, the limited scope of Amazon’s LPE emissions has ultimately limited its potential. Pescatore notes: “Amazon’s objectives are very simple: it’s about increasing the value and subscriptions around the first service. The Premier League aligns itself with its strategy during the holiday season, but may have reached the limit of its effectiveness. »
Changing the approach of European competitions
With EPL rights out of the table, Amazon has changed its football strategy to the UEFA Champions League, ensuring quotas in the UK, Germany and Italy. The transition reflects Amazon’s growing focus on competitions that offer more value and commitment throughout the year. Godard noted that Amazon’s approach has evolved from the mentality of a “retirement” to the mentality of a ”broadcaster”, but the increase in the costs of the EPL’s internal rights made it impossible to make the additional investment impossible. “I’ve never seen this as a vote against the Premier League, but it’s so expensive,” Godard added.
The return of traditional transmitters
Sky Sports and TNT Sports re-established their domain on the EPL transmission, ensuring five exclusive packages at the last auction. This result highlights the Premier League’s preference for traditional broadcasters, who collectively generate £1.68 billion per season in revenues from national rights. Pescatore suggested that Sky and TNT are well positioned to adapt to the streaming revolution, having invested heavily in multiplatform distribution capabilities.
While new players such as DAZN, Apple TV and Netflix continue to explore live sports transmission, their participation remains cautious. Godard noted that while platforms such as YouTube and Netflix have entered the sport market in the United States, Europe’s lowest advertising revenues are a challenge. “We can see that other Streamers are joining the future auction, but the market dynamics in Europe are very different,” he said.
For the Premier League, the current broadcasting model remains a financial hub, with steady growth in global markets. However, the issues address the league’s future strategy. Analysts believe that the Premier League can develop its own direct consumption platform, similar to “Prem-flix”, as delivery via Internet protocol becomes the norm. According to Pescatore, “the direction of the trip is clear, but the way we arrived is not yet. »
As Amazon leaves the EPL scene, its legacy of innovation in sports broadcasting recalls the changing dynamics of media consumption. For now, the current giant will observe from parallel lines, focusing its resources on markets where its investment strategy is more closely aligned with trade objectives.
