American multinational technology company Amazon is set to diversify its portfolio as it plans to invest in live sports content by launching a standalone app.
The company, which currently has live sports offerings on its prime video platform, seeks to have all its sports content in one app.
As sports remains one of the biggest attractions for live viewing, Amazon has invested in other sports content to complement live games, as it has launched original sports talk shows on both prime video and its streaming service freevee.
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The company already owns the rights to stream games including National Football League’s Thursday Night Football franchise and Premier League soccer matches in the UK, setting it up to better compete with sports streaming leader Walt Disney.
Although Amazon did not disclose when the independent sports app would be launched as customers anticipate the release.
Recall that in the Third Quarter (Q3) of 2022, Amazon’s income dipped massively, as the unfriendly economy took a toll on the company.
Amazon revealed that its operating income decreased to $2.5 billion in Q3 2022 compared to $4.9 billion in the same quarter last year, while net income dipped to $2.9 billion compared to $3.2 billion during Q3 2021.
It also revealed an operating loss of $0.4 billion in North America in Q3 2022, an unfavorable outcome compared to the nearly $1 billion in operating income the company achieved the same quarter a year ago.
Internationally, the tech giant fared worse, notching a $2.5 billion operating loss versus Q3 2021’s $900 million loss.
Following its proposed launch of a standalone sports streaming app, discussion suggests that Amazon could be thinking of new ways to generate more income for the company.
Lately, it has been reviewing parts of its unprofitable divisions, which has led to the elimination of numerous roles. Amid these cost-cutting efforts, it remains committed to building out Prime Video and its live sports streaming content.
It is obvious Amazon is not the only tech company diversifying its portfolio by offering live-streaming sports content.
Tech giant Apple announced its first live sports deal with Major League Baseball to bring a number of games and other MLB content to the Apple TV+ service for the 2022 season.
Also, video-sharing platform YouTube and the National Football League (NFL) announced that they have reached a deal for the NFL Sunday Ticket, starting next season.
The NFL Sunday Ticket will be available on two of YouTube’s subscription businesses as an add-on package on YouTube TV and standalone à la carte on YouTube Primetime Channels.
It is visible that Tech companies are now looking to overtake cable companies for the rights to broadcast major sporting events and overcome some of the challenges in the industry by adding sports entertainment to their offerings.
Right now, sports comprise 95 of the 100 most viewed programs on US TV and are considered one of the safest ways to expand a base of paying subscribers.
According to Disney’s current CEO Bob Iger, he disclosed that Tech companies’ entry into sports broadcasting is spooking traditional entertainment companies who worry that they won’t be able to compete against companies that “aren’t playing by the same financial rules.
Meanwhile, Amazon will no doubt be faced with strong competition in the sports streaming industry, although, with its plans to launch a standalone app, it will no doubt give it a competitive advantage amongst its rivals, as the app will be strictly for sports content which will make it less busy and less overwhelming.