The news that Amazon will soon start showing Premier League matches in the UK marks a big milestone in the rise of the FAAMGs in sports broadcasting.
From a marketing and payments perspective, I think this is a pretty amazing development. Multi-screening by distracted television viewers has long been an issue for TV advertisers. But if Amazon controls the ads, there are some pretty sophisticated things it could start to do when it comes to analytics and tracking...
- When an ad is shown for a product on Amazon, it would be much easier to track the immediate effect that ad has on viewer behaviour - from clicking to browsing to purchasing.
- At the start of the game, when the camera zooms in on the ball before kick-off, could a pop up appear which tells the viewer how much that ball costs online, and so on.
- Could we start tailoring advertising to the individual user based on their purchase history and other demographics (I say this without knowing Amazon's broadcast capabilities). For example, someone who bought Wimbledon tickets online then sees ads about tennis rackets and then sees ads about tennis lessons and so on.
- But this is already happening online I hear you say? Well, yes, but TV viewers who see an on-screen ad are much more likely to notice, observe and discuss that advert than internet users who come across them while surfing the web alone.
- The original point above was about tailoring adverts in ad breaks. But you could also start to tailor the advertising boards on the edge of the pitch or the logo on the umpires back as well during in-game activity.
- If you can start to measure a direct link between the time a product spends on screen (for example, the coach's suit or the goalie's gloves) and the subsequent sales it achieves, could you start to auction off additional camera time to the makers of those products?
These are all questions, but they're things the traditional broadcasters don't currently offer which Amazon could potentially do. For now, it means fans will have to subscribe to three different broadcasters to watch all Premier League games, so on face value, it adds complexity. However, at the same time, it's also another part of our day-to-day life now 'living' on these digital platforms.
While you're thinking about the finance of football, Deloitte has just released its Annual Review of Football Finance 2018 and it reveals a new era of improved profitability and financial stability for football clubs.
Amazon and other technology groups are increasingly pushing into live sport, challenging traditional broadcasters which have used them to underpin their subscription packages to consumers.