Amazon Prime Video announced a comprehensive expansion of its live sports offerings on Wednesday, committing $3 billion over five years to acquire rights for major sporting events including the NBA, Premier League soccer, and NCAA athletics.
"Sports is the last frontier of appointment television, and we intend to be where the fans are," said Amazon Studios head Mike Hopkins. "Live sports creates appointment viewing that drives subscriber retention in ways that no other content category can match."
The NBA rights deal, expected to be announced within weeks, would give Amazon exclusive coverage of one conference playoff series and select regular-season games. The deal would complement existing agreements with the NFL, MLB, and Formula 1.
"Amazon has made a strategic decision to compete directly with cable for sports-viewing households," said Enders Analysis media consultant Jamie McGowan. "The economics are challenging, but the subscriber retention benefits justify the investment."
Cable and satellite providers have expressed concern about the competition, with several major distributors reporting increased subscriber churn that they attribute to streaming services capturing sports rights.