Parks Associates’ OTT Video Market Tracker Notes Amazon Prime Video and NFL Landmark Content Rights Deal to Boost Adoption Beyond 47% of US Broadband Households

New Parks Associates consumer research featured in its OTT Video Market Tracker shows 47% of US broadband households currently subscribe to Amazon Prime Video. The landmark content rights deal between Amazon Prime Video and the NFL, reportedly worth $1 billion annually, will help increase the service’s subscription uptake and regular viewers through exclusive rights to stream Thursday night football games.

This arrangement will boost the advertising dollars, data captured, and exposure to sports fans for Amazon’s streaming service. The NFL deal preceded Amazon’s merger with film studio MGM for $8.45 billion, announced last week. This acquisition will likewise help Amazon boost subscriptions to its Prime and Prime Video services with the addition of MGM’s IP, which includes the James Bond and Robocop franchises. Parks Associates estimates that 77.3 million US households are Amazon Prime members and that roughly 71% watch Prime Video, totaling nearly 55 million households in Q1 2021.

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“In its first all-streaming package, the NFL inked a ten-year agreement with Amazon Prime Video for the streaming rights to fifteen Thursday Night Football games and one pre-season game per year in the US, beginning in 2022,” said Steve Nason, Research Director, Parks Associates. “By offering live games, streaming services give the significant market of NFL fans a reason to subscribe. As OTT becomes an integral part of its strategy, the NFL is working to secure viewers, and profits, for the next decade, and the Amazon partnership represents an outstanding and unprecedented opportunity to set the stage for success.”

Parks Associates research of 10,000 US broadband households finds 55% of pay-TV households consider live sports important in their decision to keep their service. Additionally, more than two-thirds of online pay-TV subscribers and 43% of traditional pay-TV subscribers who cancelled their pay-TV service during COVID-19 were likely to re-subscribe following the return of live sports.

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Other major media conglomerates have also expanded their live NFL coverage to incorporate both traditional TV and OTT. The Walt Disney Company will air one international game on ESPN+ and add one exclusive national game yearly beginning in 2022. Additionally, NBCUniversal will air Sunday Night Football on its linear NBC channel and stream select games on its OTT service Peacock.

“Traditional video is dwindling and a diversified distribution strategy is the only logical method of growing NFL viewership,” Nason said. “While traditional players won’t see reductions to their coverage content, the lack of exclusivity over one of their biggest remaining assets will be detrimental to adding new viewers.”

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