NFL Renews Media Deals at Significant Premium; Adds Amazon to Mix

Kimberly Redmond  |

Video source: YouTube, CNBC Television

The National Football League (NFL) has reached long-term media deals with Amazon.com Inc (Nasdaq:  AMZN) and the major broadcast companies that will run through 2033.

On Thursday, the NFL announced it is renewing airing rights with all of its existing broadcast partners and adding Amazon Prime Video as the exclusive partner for Thursday Night Football, marking the first time that a streaming service will carry a full package of games, CNBC reported. 

The combined financial terms of the agreements, which are set to begin with the 2023 NFL season, were not officially disclosed by the league, but CNBC reported that the deal could be worth over $100 billion, while The Associated Press reported $113 billion as the total value.

It sets a new bar for sports media deals in the US.

During a conference call with reporters, NFL commissioner Roger Goodell said the agreements were a “seminal moment” in how the NFL distributes content amid “a media landscape that’s rapidly changing” and will give the league “flexibility to adapt to new technology” and “new viewing habits.”  

Citing unnamed sources, CNBC said Amazon will be paying $1 billion per year, while ViacomCBS Inc (Nasdaq:  VIAC), Fox Corporation (Nasdaq:  FOXA) and Comcast Corporation (Nasdaq:  CMCSA), which owns NBCUniversal, will pay $2 billion each year. The Walt Disney Company, (NYSE:  DIS) which owns ESPN and ABC and will get more access to NFL content than the other networks, will reportedly pay $2.7 billion per year. 

Under the terms of the deal between Disney and the NFL, ESPN will retain the Monday Night Football package and ABC has the rights to air two Super Bowl games. It can also stream all NFL games on ESPN+ that are broadcast on ABC and ESPN

Fox will still air National Football Conference (NFC) games and will broadcast the Super Bowl in 2024, 2028 and 2032. 
CBS will continue to host American Football Conference (AFC) games and stream them on its Paramount+ service. It will also air the Super Bowl in 2023, 2027 and 2031.

NBCUniversal will keep the Sunday Night Football package and use its Peacock platform to stream games. NBC also has broadcasting rights for the Super Bowl in 2025, 2029 and 2033.

In a statement, Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said, “NFL games are the most watched live programming in the United States and this unprecedented Thursday Night Football package gives tens of millions of new and existing Prime members exclusive access to must-watch live football on Prime Video.” 

Bob Chapek, Disney’s chief executive officer, said the “landmark agreement” ensures that “ESPN’s passionate fan base will continue to have the best the NFL has to offer.”

He added, “Bringing all the considerable and unique capabilities of The Walt Disney Company and ESPN to the table opens up so many opportunities across our industry-leading direct-to-consumer, broadcast, cable, linear, social and digital outlets.” 

Using The Associated Press's $113 billion figure, the average annual value of $10.3 billion represents an 80% increase over the current deal.

Subscribe to get our Daily Fix delivered to your inbox 5 days a week

_____

Source: Equities News

Market Movers

Sponsored Financial Content