Twitter already has a deal with Major League Baseball to stream some games, and now it appears Facebook has a similar arrangement. The latter will broadcast 20 Friday-night games throughout the season. Given other recent deals for major sports, including Twitter’s last year for Thursday night NFL games, that might sound like a lot, but of course there are 30 teams in the MLB, each of which plays 162 regular season games, which means that including the postseason there are nearly 2500 games in total each year, so Facebook will air less than 1% of the total. And I’m guessing Friday night games have among the lowest viewership of any games, so this feels like a low-risk proposition for MLB and an experiment at best for Facebook. For viewers, too, the chances that Facebook will be showing the one game your team is playing in any given Friday night will be slim. But this feels like a good step for Facebook as it both scales up its live broadcast offerings and feels out what the audiences will be like for sports on Facebook.
This is an interesting outcome to this bidding process, with perhaps the most interesting part being the price to be paid by Amazon, which is five times what Twitter paid for the equivalent rights last year. I had wondered if the NFL was going to let the winning broadcaster sell more of its own ads, which would have justified a higher price, but as that doesn’t seem to be the case it looks more likely that the higher price was the result of a bidding war. If I recall correctly, Twitter was said not to have been the highest bidder last time around, so it’s possible both that Amazon (and possibly others) bid more and that the NFL decided to go with the higher bidder this time. From Amazon’s perspective, the deal certainly fits with two existing initiatives: its increasing focus on TV and in particular live TV, and its slow but steady push into advertising. The big issue Amazon has with TV at this point is that its efforts are spread over two very different brands and channels, namely Twitch and Prime. At some point, the aggregation strategy that’s served its Channels business well will likely make sense in live TV too. But broadcasting live TV is a great opportunity to market Amazon hardware products to a captive video audience as well.
This is an interesting next potential step in Twitter’s push into live video. So far it’s focused on licensing video to show to all visitors (or at least all visitors in a particular country), with one of the big selling points being that users don’t have to hunt through a channel guide, authenticate themselves through a pay TV service, or jump through other hoops. What Twitter is betting on now is that users might be willing to authenticate themselves through a pay TV provider in return for the smaller benefit of watching video and related tweets in a single window, something I’m not sure users will go for. Twitter has, at least, made that tweet curation experience better in recent months, which may increase the attractiveness somewhat, but I suspect a big attraction for the other live video Twitter has shown was that it was free and painless. As anyone who’s used other TVE solutions knows, those words generally don’t apply.
Facebook, Amazon, Twitter and YouTube are bidding to stream the NFL’s Thursday night games – Recode (Mar 24, 2017)
When Twitter won these rights last time around in their first year as a separate set from television rights, it turned out to be something very different from what many of us expected. Rather than a massive splurge on a very valuable set of rights, it turned out that the winner merely got the right to show the games along with advertising mostly already sold by broadcasters, meaning there was very little additional revenue opportunity, and as such Twitter got the rights for a paltry $10 million. These NFL games have actually been a good fit with Twitter’s overall live strategy, which has mostly been focused on winning audiences rather than lots of new revenue, but it seems others are interested in taking another crack this year. It would obviously fit well with Facebook’s recent push into professionally produced live video, but also with YouTube’s recent investment in e-sports rights and with Amazon’s foray into TV bundles and Twitch video streaming. It’s less of a good fit with Apple’s current focus in the TV space, so it’s not surprising that its name doesn’t appear here. I’ll be very interested to see if the NFL is pitching the same kind of package as last time or whether the winning bidder will have the right to sell more of its own ads this time around.
E-sports are one of the few where the TV and digital rights aren’t sewn up for years to come, and so they’ve become a battleground for big digital players, with Amazon buying Twitch and YouTube now stealing one of its most high-profile, high-quality content deals. This is a big step for YouTube, which has dabbled with various bits of live sports in the past but has never had a really high-profile deal. It’s obviously not going to deliver NFL-like viewing numbers, but it’s a good test of YouTube’s commitment to live video and sports.
Pirate Soccer Streams Thrive on Facebook – El Pais (Feb 21, 2017)
There have been a couple of stories recently about Facebook finding ways to detect and either crack down on or monetize pirated music on the platform, but this analysis from Spanish newspaper El Pais demonstrates that music is far from the only thing being pirated regularly on Facebook. It appears that there are massively popular streams – the article cites a recent game between Barcelona and Real Madrid where one stream alone had 700,000 viewers – which go largely unchecked on Facebook. The key to their success is that users follow Pages which post links to streams hosted by other entities – because the aggregators themselves never infringe on any copyright, they can build big audiences and merely direct them at whatever streams are available. As Facebook gets ever more serious about video on the platform, it’s going to have to get better at detecting infringing live streams in real time, especially if it wants to win the trust of traditional broadcasters.
via El Pais (in Spanish)