Facebook is known as a hub for social interactions and entertainment. Amazon on the other hand is synonymous with giving its users shopping options where they can purchase goods from the tap of a button on their phones. But this state of affairs may soon change owing to the luxurious popularity that these technology companies enjoy.
CNBC reports that according to a statement issued by the head of technology research with the GBH Insights Daniel Ives, the next 12 to 18 months will be crucial as popular tech-oriented companies will easily land sports rights.
Ives said that going by the trends, companies giving sporting rights will have no excuse but to allow such companies to provide games for their users.
“We note in 2021, the year when the NFL, MLB and NHL media rights deals mostly end, will be the first major opportunity for Amazon, Facebook and other major tech streaming platforms to potentially bid on some of these rights versus the likes of traditional entrenched media/cable players," he said, as CNBC reveals.
He attributed this possibility to a new strategic shift, where Facebook and Amazon have recently increased budgetary allocation for video streaming. This statement is supported by a report from the Wall Street Journal indicating that Facebook has allocated Shs 100 Bilion ($1Bilion) this year for developing video streaming platforms. The same report asserts that Amazon has allocated Shs 500 Bilion ($5Bilion) for similar purpose.
The analysts like Ives argue that tech companies will likely benefit from the situation that most contracts will be running out allowing the likes of Facebook and Amazon to pounce on such opportunities.
“We will be watching this sports content battle closely over the coming year, as well as the engagement from the Facebook MLB endeavor, as it could be a sign of things to come with streaming platforms playing a bigger role in global professional sports broadcasting rights in the years ahead and potentially shaking up this market, while adding a major notch on the content belts of Amazon, Facebook and other new tech entrants to this arena.”
Facebook is has already started streaming 25 Major League Baseball games and this trend could spread to other sports. Amazon too has not been left on the pew. It is already streaming the Thursday night NFL Football games.