How Much Did Amazon Pay for Thursday Night Football?
How Much Did Amazon Pay for Thursday Night Football? A Detailed Look
In early 2022, a seismic shift occurred in sports media: Amazon secured exclusive rights to broadcast Thursday Night Football (TNF), one of the National Football League‘s (NFL) most-watched properties. This multi-billion dollar deal sent shockwaves across the broadcasting, streaming, and sports industries.
Let‘s break down key details around Amazon‘s TNF acquisition cost, the motivations behind it, its wide-ranging impacts across media landscapes, scheduling and coverage specifics, featured matchups and talent, Amazon‘s roadmap for the partnership, and what it signals about the future of live sports viewership.
Acquisition Costs: How Much is Thursday Night Football Worth?
After months of negotiations, Amazon and the NFL inked an 11-year deal starting with the 2023 season and running through 2033. According to multiple reports, Amazon is paying roughly $1 billion per year for exclusive rights to the TNF package.
To put that monumental sum into context, here‘s a comparison of TNF‘s annual costs across recent broadcasting deals:
Yearly TNF Rights Fees by Broadcaster
Broadcaster Year Annual Price
Twitter 2016 $10 million
NBC/CBS 2014-2017 $450 million
Fox 2018-2022 $660 million
Amazon 2023-2033 $1 billion
For Amazon, this works out to around $73 million per game when accounting for the 15 Thursday matchups they‘ll broadcast annually (except Thanksgiving night). At first glance, a billion dollars per year seems astronomical.
However, TNF brings massive awareness and viewership. In 2021, TNF games averaged 16.4 million viewers across TV and digital, per Nielsen data. Furthermore, live sports are increasingly valuable as marquee attractions with tireless demand and a last vestige of appointment viewing in the streaming era.
For the tech giant angling to draw users into its Amazon Prime ecosystem, TNF represented the perfect blend of mass appeal and prestige to drive subscriptions. And even as linear TV continues fragmenting audiences, the NFL maintains unparalleled reach, making this sports rights investment a calculated gambit by Amazon.
How the TNF Acquisition Fits Amazon‘s Broader Content Strategy
Far beyond just football, Amazon has aggressively invested in prestige programming in recent years across entertainment, news and sports. This includes splashy multi-season series like The Lord of The Rings: The Rings of Power, premium alternative sports like tennis, and news deals with media heavyweights.
Let‘s examine how the seismic TNF pact aligns with Amazon‘s wider content gameplan:
Prime Video as Portal to Wider Ecosystem
Much like Apple TV+ or Netflix, Amazon Studios produces and licenses polished originals to anchor Prime Video, hoping glossy shows dragging users into a broader ecosystem of shopping and services.
Focus on Tentpole Properties
Rather than a broad portfolio, Amazon strategically targets select crown jewel franchises that can drive subscriptions, most recently securing rights to TNF through 2033 and the Lord of the Rings franchise through 2026.
Expanded Live Sports Catalog
In addition to TNF representing Amazon‘s largest sports rights deal yet, Prime Video also streams alternative leagues like the NFL, ATP Tour tennis events and some Yankees baseball games as it diversifies from VoD focus into live broadcasts.
Economies of Scale
With over 200 million Prime Video subscribers globally as of April 2022, Amazon can justify lavish production budgets and hefty league contracts other newcomers can‘t, using its ecosystem heft to accelerate content ambitions faster than rivals.
How the TNF Deal Reshapes the Sports Broadcasting Landscape
Far beyond the billions it spent annually, Amazon snagging exclusive TNF rights signifies several key shifts in the sports media environment:
More Streaming Players Competing for Live Sports
A global brand outside traditional TV breaking into national NFL packages signals accelerated positioning of streamers as leaders in live sports broadcasting. As younger fans increasingly cut the cord, deals like TNF on Prime Video erode long-time broadcast and cable partners‘ stranglehold on prestigious sports properties.Disrupting Legacy Media Relationships
The non-renewal of long-time TNF TV partners like Fox and NFL Network reflects the league rethinking its media relationships amid the meteoric rise of digital and mobile sports consumption. Rather than staying locked into traditional TV deals, sports entities like the NFL aim to capitalize on emerging distribution models reaching wider audiences.Increased Pressure on Cable/Satellite
As Prime Video takes over a prized franchise like Thursday Night Football, cable operators and satellite companies face steeper subscriber losses. Live NFL games were typically the last remaining reason many fans maintained bloated pay-TV bundles. But with streaming options like TNF on Prime, more fans are cutting the cord once and for all.Innovative Interactive Viewing Experience
Through planned integrations like Next Gen Stats overlays, customized replay formats, and special talent commentary, Amazon aims to enhance TNF with interactive elements befitting the streaming experience. Rather than just simulcasting a linear broadcast feed, they can create a bespoke TNF telecast catering to digital-first users.Global NFL Rights Precedent
As one of the world‘s most ubiquitous companies operating the internet‘s largest marketplace, Amazon provides the NFL with tantalizing possibilities to grow American football fandom and broadcasts worldwide. This TNF deal could pave the way towards expanded international NFL streaming rights in future.
Appointment Viewing with Mass Appeal: TNF by the Numbers
So TNF offers great qualitative benefits to a tech titan like Amazon – but what do the vital statistics say about its viewership traction? Let‘s examine quantitative data around Thursday Night Football‘s surging popularity:
● Over 20 million viewers tuned into TNF across the first three weeks of the 2021 NFL season, per The Ringer.
● Through Week 15 last season, TNF ranked as TV‘s most-watched show for 29% of game weeks, per Sports Business Journal.
● Among the crucial 18-49 demographic, TNF viewership rose +4% Year-over-Year in 2021 – one of only 3 primetime shows to increase.
● An average minute audience of 16.4 million viewers consumed TNF programming in 2021 across TV and digital platforms, per official NFL and Nielsen metrics.
● Across a total audience spanning television, mobile and PC screens, TNF viewership ticked up +3% in 2021 compared to 2020 totals.
Clearly by consuming habits and attraction to advertisers, Thursday Night Football boasts mass appeal and surging momentum complementing its prestige. Now under Amazon‘s stewardship exclusively, TNF promises to expand its reach even wider.
Schedule and Coverage: How to Watch TNF on Prime Video
So we know Amazon‘s industry-rattling deal makes them the exclusive home of Thursday Night Football through 2033. But what exactly does that TNF slate entail on Prime Video, and how can fans tune in?
Prime Video Lands Exclusive Broadcast Rights
Starting with 2023‘s Week 2 and excluding Thanksgiving night, Prime Video will live stream the only TNF broadcast feed as part of its billion-dollar rights deal. So the days of NFL Network and over-air networks simulcasting TNF telecasts have ended.
Weekly Games – Weeks 2-16 Plus Playoffs
The 15-game TNF slate runs nearly the entire NFL regular season, kicking off annually with Week 2 in mid-September and concluding in late December. Thanksgiving night remains on NBC and NFL Network.
Start Times – Weeknight Appointment Viewing
Kickoff for Thursday Night Football is set for 8:15 pm ET/5:15 pm PT, allowing East Coast and Central Time Zone fans to watch marquee matchups in prime time on Thursdays.
Playoff Implications – Crucial Late-Season Games
Rather than early-season tune-ups, TNF often holds massive postseason implications in cold-weather December showdowns between rivals and championship hopefuls. Expect drama-filled, playoff-intensity contests with the season hanging in the balance.
Interactive Streaming Format – Next Gen Enhancements
Delivering TNF in the streaming environment allows Amazon to personalize and enhance broadcasts through integrated stats and data layers, customized replays, predictive gaming elements, social features and other innovations.
Star-Studded Talent – Celebrity Announce Team
Amazon spared no expense compiling an A-List TNF talent roster, hiring legendary announcer Al Michaels (who has called 10 Super Bowls) and analyst Kirk Herbstreit (21-year ESPN veteran averaging 7.9 million CFP viewers) as the lead broadcast booth. Fan-favorite Charissa Thompson hosts pregame, halftime and postgame locker room access.
Who to Watch on Prime Video‘s Thursday Nights
Beyond the celebrity announce crews, what about the stars taking the field on TNF and the marquee matchups Amazon can showcase through this long-term exclusive deal? Let‘s preview some potential dream team showcases this fall and over the next decade.
Mahomes vs. Herbert – The NFL‘s Youth Movement
Early in the 2023 season, TNF could pit young hotshot quarterbacks Patrick Mahomes and Justin Herbert against each other when the Chiefs battle the Chargers. It would showcase the league‘s future stars.
Brady‘s Return to the Spotlight
Even in his mid-40s, the notorious Tom Brady just signed on for two more years quarterbacking the Bucs, likely guaranteeing more TNF appearances for the 7-time Super Bowl champ before he retires.
Burrow vs. Jackson – Electric Young QBs
A potential playoff preview like Joe Burrow‘s ascending Bengals taking on Lamar Jackson‘s dangerous Ravens represents a clash of AFC North powers led by two electrifying playmakers.
NFC Title Game Rematches
TNF allows for intriguing playoff rematches like the Rams clashing with Green Bay again after their classic 2022 NFC Championship Game. Where better to exact revenge?
Mahomes vs. Allen – MVP Showcase
It‘s the matchup the NFL desperately wanted on its glistening Thursday night stage – former MVP Patrick Mahomes against heir apparent Josh Allen in a battle of elite arms and uncontainable playmaking ability when the Chiefs take on the Bills.
High-Stakes Divisional Rivalries
Thanks to clever scheduling already announced, TNF intensifies already bitter rivalries like Packers vs. Bears, Steelers vs. Browns, Giants vs. Commanders, 49ers vs. Seahawks and Cowboys vs. Eagles when playoff hopes hang by a thread.
Watson‘s Return as QB1?
If reinstated from suspension, controversial Browns quarterback Deshaun Watson could make his first Cleveland start on a Thursday night, drawing massive curiosity and attention.
Rodgers Chasing Another MVP
TNF provides the ideal catwalk for during a potential fourth MVP campaign from Packers icon Aaron Rodgers, cementing his late-career renaissance.
Young QBs Enter the Spotlight
Rising sophomore signal callers like the Jets‘ Zach Wilson, Bears‘ Justin Fields and Patriots‘ Mac Jones make great TNF programming, with Amazon showcasing the NFL‘s budding stars.
What Does the Future Hold for TNF on Prime Video?
Looking big picture beyond the 2022 season, what is Amazon‘s grand plan for Thursday Night Football moving forward? How might the seismic shift in broadcast rights transform NFL media and game presentation? Let‘s gaze into the future.
Objective: Grow Amazon Prime Subscriptions
CEO Andy Jassy didn‘t greenlight $1 billion annually in rights fees solely as a public service to football fans. He wants TNF to drive Prime subscriptions and make Amazon indispensable to cord-cutters amid the streaming wars.
Offer Interactive Fan Experiences
Picture a TNF telecast with integrated real-time stats, predictive gaming elements allowing you to guess each play outcome, AR graphics overlaying Amazon‘s X-Ray content, and special camera angles for analyzing game flow – made possible through streaming.
Experiment with Specialty Audio Feeds
Look for Amazon to try out bonus specialized commentary options like coach‘s film room breakdowns for obsessive X‘s and O‘s analysis or kid-friendly broadcasts. Maybe celebrities like Peyton Manning can ride shotgun with Al & Kirk!
Expand to Other Amazon Platforms
Don‘t be surprised if TNF materializes via Alexa for customized voice replays and stats inquiries. And the flashy pregame show could integrate live-streamed fan reaction content from Amazon‘s acquisition, Twitch.
Prototype In-Venue Experiences
As part of its partnership, expect Amazon to embed its interface into NFL stadium operations – from mobile concession ordering to membership perks to predictive in-game contests. TNF offers the perfect petri dish for experiential experiments.
Establish Global NFL Leadership
With infrastructure spanning over 200 countries, TNF represents Amazon‘s foothold broadcasting the NFL internationally. By exporting games globally, Amazon can accelerate American football‘s worldwide popularity like NBA did with basketball.
Projected TNF Ad Revenue on Prime Video
While subscriber growth makes up the crux of Amazon‘s desired ROI from the landmark TNF deal, let‘s also examine its expected impact on Prime Video‘s advertising business, which has scaled rapidly in recent years.
In August 2021 per Insider Intelligence, Amazon‘s U.S. ad business generated approximately $31 billion in revenue over the previous year. Compare that to the 2020 NFL season, where league-wide game broadcasts drew roughly $3.6 billion in ad revenue according to data from Kantar Media.
For context, CNBC reported that 30-second ads during the 2022 NFL Playoffs commanded north of $6 million for high-profile showcases like the Super Bowl. Rates steadily diminish for regular season contests, but TNF still represents premium real estate. Here are conservative projections for Amazon‘s TNF ad earnings specifically:
Potential TNF Ad Revenue by Year
Year – Est. Revenue
2023 – $500 million
2024 – $600 million
2025 – $750 million
2026 + – $900+ million
Driven by Amazon‘s data-driven ad targeting capabilities, their exclusive ownership of 15 annual broadcasts in the coveted Thursday night time slot could yield 9-figure sponsorship earnings complementing subscriptions.
Over the contract‘s life, expect total TNF ad revenue on Prime Video to eclipse $7 billion as Amazon monetizes these rights. And the upside exceeds even these aggressive forecasts if Amazon launches some type of advertising-supported streaming tier integrated with TNF broadcasts down the line.
Conclusion:
Amazon shook the media world by snatching the rights to Thursday Night Football with an eye-popping contract that will pay the NFL around $1 billion per season through 2033. But beyond the staggering money, this deal signals profound shifts across broadcasting, distribution paradigms, and how fans experience live sports in the digital era.
Thank you for joining me on an insider‘s crash course into Amazon‘s costs and motivations around TNF, the immense ripple effects across industries, broadcast plans, marquee matchups, interactive enhancements, and the long view on transforming game consumption.
I hope this 2600-word-plus comprehensive overview left you with a deeper understanding of how mega-companies like Amazon strategically invest in premium sports properties, and the landscape-rattling impact of digitally-native brands taking the reins of fandom‘s most sacrosanct programming.
When Thursday Night Football kicks off on Prime Video this September, you‘ll gain a whole new appreciation for everything in motion behind the scenes. But for now, let‘s enjoy NFL football‘s imminent return – no matter which platforms, players and announcers carry us towards another glorious season!
