TheStreet’s Colin Salao breaks down why traditional cable may be in trouble when it comes to how consumers view their sports.
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SportsTranscript
00:00 On the heels of the massive news between the WWE and Netflix,
00:03 Colin, walk us through some of the other partnerships
00:06 between streaming services and leagues.
00:08 Of course, Netflix has now entered the market.
00:13 They are in live sports entertainment,
00:15 but a lot of other players have been in this for a while now.
00:19 Amazon and Apple as some peacock even.
00:22 So a couple of years ago, NFL agreed to a deal
00:25 with five different broadcast partners,
00:28 11 years, 110 billion, one of them being Amazon,
00:32 who are paying $1 billion a year for Thursday night football.
00:37 NBC is also one of those partners.
00:39 And as we saw during the wild card game a few weeks ago,
00:42 they paid $100 million to exclusively air that matchup
00:47 between the Kansas City Chiefs and the Miami Dolphins.
00:49 For Apple TV, on the other hand,
00:52 they are in the game with Major League Baseball
00:54 paying $85 million per year to air MLB games on Fridays.
01:01 And they paid $2.5 billion for a 10-year deal
01:05 with Major League Soccer,
01:06 which has been great for them through its first season
01:09 due to the arrival of Lionel Messi.
01:12 What exactly is driving the move
01:14 from traditional cable to streaming services?
01:16 I mean, just like with anything in business,
01:20 it's really the dollars, it's really money.
01:21 We've seen media change.
01:24 Social media has come in.
01:26 People are consuming content differently.
01:29 And for a while, it was Netflix and Amazon
01:32 and these streaming services were doing,
01:34 you know, regular television shows and movies.
01:36 And when they recognized sports
01:38 as something that was keeping people on linear television,
01:41 they went ahead and got it.
01:43 And a lot of these tech companies like Amazon and Apple,
01:45 they have deeper pockets than your Disney's
01:48 or your Netflix's.
01:50 So they're willing to spend more money
01:52 to bring people into these media services that they have
01:55 and drive them towards
01:57 their more high profit margin properties and products
02:00 like your iPhones or, you know, other Amazon products.
02:04 So they're bringing in that money,
02:06 they're seeing where the money's going,
02:07 they're seeing where content is being consumed
02:10 and they're investing.
02:11 And that's why you're really seeing
02:13 a lot of movement towards streaming.
02:15 (silence)
02:17 [BLANK_AUDIO]