By Jay Bemis | Advertising Systems Inc.
As live-sports viewers continue to switch from watching games on traditional TV to digitally streaming the contests, a court decision Thursday is paving the way for Amazon Prime Video to grab a big piece of the streaming action.
In Thursday’s decision, a federal judge approved Diamond Sports Group’s plan to emerge from Chapter 11 bankruptcy. The plan filed in US bankruptcy court includes a new naming rights agreement with FanDuel, a streaming deal with Amazon Prime Video and broadcast rights for 27 MLB, NHL and NBA teams, all of whom decided to renegotiate or stick to existing contracts with Diamond.
The court’s approval ends 20 months of uncertainty about the fate of a company that held regional broadcast rights for 14 MLB teams as recently as two years ago but could no longer afford to pay for them.
Diamond Sports will now be branded as FanDuel, and fans of the 27 pro teams beneath its umbrella will be able to stream games through the Amazon Prime Video platform.
Thursday’s deal includes Diamond/FanDuel gaining broadcast rights to six MLB teams: the Los Angeles Angels, Atlanta Braves, Tampa Bay Rays, Detroit Tigers, St. Louis Cardinals and Miami Marlins, along with 13 NBA teams and eight NHL teams. Judge Christopher Lopez of the Southern District of Texas also hinted in U.S. Bankruptcy court that Diamond is still negotiating a similar deal with a seventh MLB team, thought to be the Kansas City Royals.
“Partnering with Prime Video, one of the largest streaming destinations in the U.S., and making FanDuel Sports Network available … creates a tremendous opportunity for us to expand our reach and better connect with viewers,” said David Preschlack, CEO of Diamond Sports Group.
“Our partnerships with Prime Video and FanDuel combine with our agreements with team, league and distribution partners to support a transformative reorganization of our business, and a leading linear and digital offering that will continue driving long-term value and enhanced experiences for our partners and fans.”
Sports Streamers Surpass Traditional-TV Watchers
Within the past year, digital live sports viewers have surpassed traditional pay TV live sports viewers in the US, per a recent forecast from eMarketer. It says there will be 105 million sports streamers by the end of this year, compared to 85.7 million traditional pay TV users.
And, that trend is forecast to continue through 2025, when 114.1 million people are expected to watch sports via digital while 82 million watch sports via traditional TV.
The Washington Post, which is owned by Amazon founder Jeff Bezos, noted the effect that cord-cutting in favor of streaming has had in its reporting of Thursday’s Diamond deal:
“The company’s bankruptcy saga became a highly public manifestation of cord-cutting’s effect on the way consumers watch professional sports and the challenges of abandoning old cable-centric infrastructures in favor of streaming,” the newspaper said.
Amazon’s Sports Portfolio Begins to Bulge
Amazon Prime Video began airing Thursday Night Football (TNF) games in the 2022 NFL season, marking the first time a streaming service had exclusive rights to an NFL package.
With Thursday’s news of the Diamond bankruptcy deal, Amazon Prime Video now is poised to offer a variety of live sports beyond those NFL Thursday night games, as well as more advertising options. Particularly, 2025 and 2026 promise to be banner years for the streaming platform:
- Starting in 2025, Prime Video will stream 66 regular-season NBA games, including playoff games and conference finals in select years.
- From 2026, Prime Video will stream 30 WNBA games each season.
- NASCAR: Prime Video will air five NASCAR Cup Series races starting in 2025.
- MLB Games: In addition to future streaming from teams affected by Thursday’s Diamond/FanDuel deal, select New York Yankees games already were available for Prime members in certain regions.
Also, various soccer leagues and matches are streamed live by Prime Video, Premier Boxing Champions events are available, and regional NHL games already are available through Prime and the FanDuel Sports Network.
ESPN in its reporting of Thursday’s Diamond/FanDuel deal also called the court ruling the end of a sports-streaming “saga.”
“Its saga — full of twists and turns that at various points made it seem as if the company was headed for liquidation — is indicative of a volatile media landscape shaped by massive cord-cutting and an influx of streaming options,” ESPN writer Alden Gonzalez said.
