February 25, 2024

Amazon Faces Landmark Antitrust Suit For Monopoly Practices

Amazon will be making a minority investment in Diamond Sports Group. It will also secure a commercial arrangement to offer access to the services offered by Diamond via the Prime Video streaming platform.

This deal requires that Prime Video become the primary partner of Diamond. In this case, customers will have a chance to buy direct-to-consumer (DTC) access to access streaming for local Diamond channels.

Prime Video Customers to Access More Content

Part of the content that Prime Video customers will consume under this deal includes the MLB, NBA, and NHL games. They will also get access to content for the teams that Diamond retains DTC rights to through Prime Video Channels.

Amazon and Diamond will announce additional details on availability and pricing at a later date. Diamond is also planning to continue its existing partnership with MVPD distribution partners to air NBA, NHL, and MLB content.

While commenting on this partnership, the CEO of Diamond, David Preschlack, opined that the new financing plan would allow Diamond to continue operations and achieve success beyond 2024. He further noted the deal would benefit investors, employees, league, team, and distribution partners.

“We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business,” Preschlack said.

The deal between Diamond and Amazon comes around ten months after Diamond filed for Chapter 11 bankruptcy. The company is currently in the process of restructuring, with this deal with Amazon being one of the ways that the company is changing its trajectory. The company seeks to formulate a plan to come out of Chapter 11.

Streaming Platforms Lean Towards Sports Content

The investment made by Amazon in this deal with Diamond is expected to be worth around $115 million at the beginning. Despite the deal being a notable investment by Amazon, it will take a while before the streaming service airs the content provided by the sports media on its platform.

Amazon is making this notable investment at a time when streaming services are discovering the power of live sports. The live sports industry has attracted many consumers over the years.

One of the latest examples of the potential of live sports is the recent match between Miami Dolphins and Kansas City Chiefs that aired on Peacock, and amassed an average of 23 million viewers and became the most-streamed event in US history.

Streaming giant Netflix is also looking towards expanding its content coverage with sports. The company is exploring having a live boxing match to appeal to the vast audience of boxing fans. Apple TV is also considering partnering with Major League Soccer to improve customer acquisition and retention.

Getting customers access to sports content might buffer streaming platforms from losing their numbers. Streaming platforms have been bleeding customers because of the high cost of packages. Reports indicate that subscribers have been abandoning their plans at an alarming rate in the last two years.

Another report shows that US consumers are often left with a choice of whether to pay streaming subscriptions or pay their other bills. Subscribers often opt to cancel streaming subscriptions to reduce their monthly bills whenever they are backed into a corner. Therefore, streaming platforms have to offer an incentive to sustain their subscriber numbers.


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