Amazon CEO on Prime Video: Sports are very attractive to our customers, and you will see more

CNBC Television

11 Apr 202401:54

Summary

TLDRIn the transcript, a discussion revolves around the economic value of sports within Amazon's business, particularly Prime Video. The speaker expresses admiration for the NBA and hints at potential collaborations. Sports content is highlighted as a significant driver for Prime subscriptions, with examples like Thursday Night Football and upcoming NASCAR races. The speaker also mentions exclusive streaming rights for the WNBA and the Women's Final Four, emphasizing the importance of sports to Amazon's customer base and suggesting more deals are on the horizon. There's no plan to spin off the sports business due to its integration with Prime, and while the possibility of acquiring Paramount is not ruled out, the focus is on producing quality content.

Takeaways

🏀 The NBA's value is recognized as significant, with the potential to be a standalone economic business.
📺 There's a possibility of NBA content being available on Amazon, but it's not confirmed yet.
🌟 The NBA is praised for its impressive international product and the respect it commands.
🤔 The idea of spinning off the sports business is not foreseen due to its tight integration with Prime offerings.
📈 Sports programming is crucial, occupying 90% of top ratings, indicating high customer interest.
🏈 'Thursday Night Football' has been a major success, driving Prime subscriptions.
🏎️ NASCAR and other sports like soccer through UEFA and the Champions League are part of the sports offerings.
🏆 The Women's Final Four and the WNBA are also included in the sports content, with exclusive streaming on Prime Video.
🤝 More deals in sports content are expected, enhancing the attractiveness for customers.
🎬 While there's been talk about Paramount, the current sports offerings are considered satisfactory without needing to acquire more.

Q & A

What is the speaker's conviction about the business segment discussed in the script?
-The speaker believes that apart from the value it drives for the rest of the business, the discussed business segment would be a good economic business on its own as well.
Is the NBA considering a presence on Amazon?
-The speaker assumes the question is about the NBA's upcoming presence on Amazon, but they are non-committal, stating 'we'll see' and expressing respect for the NBA's work.
How does the speaker view the importance of sports for their business?
-The speaker considers sports very important, noting that sports occupy 90-plus percent of the top ratings and that they are tightly integrated into their Prime offering.
Does the speaker foresee spinning off the sports business separately?
-No, the speaker does not foresee spinning off the sports business because it is so tightly integrated into their Prime offering.
What is the impact of Thursday Night Football on the business?
-Thursday Night Football has been a huge success, driving many Prime subscriptions and attracting a large number of customers.
What other sports content does the company plan to offer?
-The company plans to offer NASCAR races, soccer through UEFA and Champions League, and is the exclusive streaming partner for the WNBA.
What was the reaction to the Women's Final Four mentioned in the script?
-The Women's Final Four was described as 'unbelievable,' indicating a very positive reception.
Is the company considering more deals in the sports content space?
-The speaker does not directly answer about more deals but mentions the company's comfort with their current offering and their focus on producing quality content.
Is there an interest in acquiring Paramount by the company?
-The speaker indicates that they are comfortable with their current offerings and does not express a desire to acquire Paramount.
What is the speaker's view on the company's current content offering?
-The speaker seems satisfied with the current content offering, focusing on the production of quality content rather than acquiring more entities.

Outlines

00:00

🏀 NBA's Economic Potential and Amazon's Sports Strategy

The paragraph discusses the NBA's economic viability as a standalone business and its potential presence on Amazon. The speaker expresses admiration for the NBA's international reach and success under Adam Silver's leadership. They also touch on the importance of sports within Amazon's business model, noting that sports content, such as Thursday Night Football, NASCAR, UEFA soccer, and the WNBA, significantly drives Prime subscriptions. The speaker confirms that sports are integral to Amazon's offerings and hints at future expansions in this area.

Mindmap

Keywords

💡Economic Business

An economic business refers to an entity that operates efficiently and profitably, contributing positively to the economy. In the context of the video, the speaker suggests that the NBA could be a successful standalone economic business due to its value and the potential it holds independently of its current integration with other ventures. The speaker's conviction is based on the NBA's ability to drive business value and its potential for independent economic success.

💡Amazon

Amazon is a multinational technology company known for its e-commerce platform, cloud computing services, and digital streaming. In the script, the mention of Amazon likely refers to the possibility of the NBA's content being available on Amazon's streaming services, indicating a potential partnership or distribution channel that could enhance the NBA's reach and Amazon's content offerings.

💡Adam Silver

Adam Silver is the Commissioner of the National Basketball Association (NBA). The script highlights the impressive work done by Adam Silver and the NBA, suggesting his leadership has been instrumental in creating a high-quality and internationally recognized product. This leadership is crucial for the NBA's success and its potential to be a standalone economic business.

💡International Product

An international product is one that has a global market and appeal. The NBA is described as an 'international product' in the script, emphasizing its widespread popularity and marketability across different countries. This global appeal is a significant factor in the NBA's potential to be a successful standalone business, as it indicates a broad consumer base and market potential.

💡Prime Offering

Prime Offering refers to the suite of benefits and services provided by Amazon Prime, such as free shipping, video streaming, and other exclusive content. The speaker mentions that sports content is tightly integrated into Amazon's Prime Offering, suggesting that sports programming is a key component of the value proposition for Amazon Prime subscribers, enhancing customer engagement and retention.

💡Thursday Night Football

Thursday Night Football is a weekly NFL game broadcast on television and digital platforms. In the script, it is mentioned as an example of how sports programming, specifically football, can drive Prime subscriptions. The success of Thursday Night Football on Amazon's platform indicates the high demand for sports content and its effectiveness in attracting and retaining customers.

💡NASCAR

NASCAR is a popular auto racing sport in the United States. The script mentions that Amazon will be streaming six NASCAR races, showcasing the company's commitment to expanding its sports content offerings. This inclusion of NASCAR races is part of Amazon's strategy to attract a diverse audience and enhance the appeal of its Prime Video service.

💡UEFA and Champions League

UEFA (Union of European Football Associations) and the Champions League are prestigious European soccer competitions. The script indicates that Amazon has secured rights to stream these soccer events, highlighting the company's efforts to provide a wide range of sports content to its subscribers. This move is likely aimed at attracting soccer fans and expanding Amazon's audience base.

💡Women's Final Four

The Women's Final Four refers to the semifinal and final rounds of the NCAA Women's Division I Basketball Championship. The script mentions the Women's Final Four to emphasize the excitement and high viewership of the event, which was streamed on Amazon's platform. This event is an example of how Amazon is diversifying its sports content to include women's sports and cater to a broader audience.

💡WNBA

The WNBA (Women's National Basketball Association) is the premier women's professional basketball league in the United States. The script notes that Amazon is the exclusive streaming partner for the WNBA, indicating a strategic move to provide exclusive content that can attract and engage basketball fans. This partnership also reflects Amazon's commitment to promoting women's sports and offering a comprehensive sports viewing experience on its platform.

💡Paramount

Paramount is a major American film and television studio, and the mention of Paramount in the script likely refers to potential acquisition discussions in the media industry. The speaker's response suggests that Amazon is currently satisfied with its content offerings and may not be pursuing the acquisition of Paramount, indicating a strategic decision based on current business needs and market positioning.

Highlights

Conviction that the business would be economically viable on its own, apart from its value to the rest of the business.

Discussion about the NBA potentially having a place on Amazon.

Impressed with what Adam Silver and the NBA have done, calling it an incredible and international product.

No immediate plans to spin off the sports business, as it's tightly integrated into the Prime offering.

Sports occupy 90-plus percent of the top ratings, indicating their importance.

Thursday Night Football has been a huge success, driving many Prime subscriptions.

Upcoming NASCAR races and UEFA soccer through Champions League are part of the sports offerings.

The Women's Final Four was highlighted as an unbelievable event.

Exclusive streaming partner for the WNBA, with Caitlin Clark to be featured on Prime Video.

Sports are very attractive to customers, and more sports content is expected.

Discussion about potential deals with Paramount, following the acquisition of MGM.

Comfortable with the current offering and focused on producing original content.

No intention to spin off the sports business due to its integration with Prime.

Sports content is a significant driver for Prime subscriptions.

The success of Thursday Night Football is emphasized as a key offering.

The importance of sports in the overall business strategy is acknowledged.

No current plans to acquire Paramount, satisfied with the current content portfolio.