Amazon (AMZN) Prime Video exists ostensibly to keep people subscribed to Amazon Prime. What started as a service based on free, unlimited two-day delivery has become a lot more than that because the retailer assumed (or knows) that customers may see free delivery as less of a prize as more options for that exist.
When Prime launched, it was something new, a service that offered real value for consumers. Now, Walmart (WMT) offers free two-day shipping albeit for millions, not hundreds of millions.
Amazon has added all sorts of services to Prime as a way to keep customers from leaving, It's not about whether you watch Prime Video or listen to music in Prime Music. Instead, it's about the total package. Do you feel like you get enough value from Amazon Prime -- whether that be shipping and video, or other things -- so you don't quit.
Amazon doesn't do that because it makes money on Prime (it likely doesn't). The retail giant wants you to be a Prime member so you shop more at Amazon.
That's a self-perpetuating relationship. You pay for Prime so to get value from the service you buy more from Amazon. Now, Amazon has reportedly made a huge new hire to help Prime become even more valuable.
Image source: Shutterstock
Why Does Amazon Want NFL Games?
The National Football League (NFL) produces some of the most-watched programming that's on television. People not only watch the national NFL games by the tens of millions -- Sunday and Monday Night Football are usually the two most-watched shows each week -- they also get watched in real-time.
That means the people watching actually see the commercials. That makes those ads worth more, a lot more, than commercials that air during even popular network programming.
Because of that, every network wants the NFL. You may not even make money airing football games, but Comcast's (CMCSA) NBC can use its Sunday Night Football spotlight to promote its prime time lineup (Law & Orders plus a lot shows with "Chicago" in the title).
Walt Disney (DIS) uses Monday Night Football, which airs on ESPN, as the centerpiece of that channel. Its highlights provide fodder for its daytime shows and a platform to promote the same shows, not to mention whatever airs on ABC (which Disney also owns. Monday Night Football is a franchise that's so valuable -- even though Sunday night gets the best games -- that Disney just blew up ESPN's salary structure to hire Joe Buck and Troy Aikman away from Fox.
That, along with Fox spending over a million dollars a game for Tony Romo to serve as its lead analyst, has set the table for the huge move Amazon appears to be about to make.
The NFL Comes to Amazon
Amazon agreed to become the home of Thursday Night Football starting in 2022. That takes the games from broadcast television (though they will air on regular TV in the local markets of the two teams playing) and makes them digital.
That's a huge move for the NFL and you can assume the league wants Amazon to do everything it can to make sure that football fans find them. Now, it appears that legendary broadcaster Al Michaels will be the man serving as Amazon's lead announcer, according to a report from the New York Post.
Michaels, who has been serving as NBC's lead NFL announcer, will work alongside ESPN's Kirk Herbstreit (who will be keeping his college football duties at ESPN. With John Madden having passed away (and being long-retired) Michael's is arguably the most-famous sportscaster alive.
Amazon gets the man who delivered the famous "do you believe in miracles" line when the 1980 U.S. men's hockey team beat the then Soviet Union to advance to the gold medal game. Michaels brings instant credibility and familiarity which should help Amazon establish a telecast that's airing in an unfamiliar place.
Prime Video will carry 15 Thursday Night Football games per year and one pre-season game per year through the 2032 season.
