What's interesting to me about Amazon bidding on the 22 RSNs is that they are preparing to alter the landscape.
Amazon-owned RSNs? What could the consumer get?
My hunch is that Disney would not want to sell those properties to Amazon unless they truly believe regional broadcasting isn't a worthy investment. With Amazon bidding though, I have a hard time believing they don't have a good plan to monetize them.
Anyway, if Amazon wins then they have more than a foot in the door.
I've thought for a while that FAANG is not all it's cracked up to be.
Facebook is a terrible platform to show sports on...not friendly to the consumer and they've lost half their traffic in the last couple of years at that. On the one hand, that could motivate them to take risks to increase their business, but the bottom line is the dam is broken when it comes to people understanding that Facebook was more of a data aggregator than a social network. If their advertising platform were worth a flip then standard companies would use it to get in front of all those eyeballs, but by and large they don't.
Apple hasn't really gotten into the content business. They sell hardware and provide options to buy a variety of entertainment files through their products. That makes their products more valuable and more consumer friendly, but it's a HUGE step between that and content creation. Sports would be another leap and I doubt it's on their radar.
Google is an interesting prospect. You can do a lot with YouTube. They have their own streaming service as it is, and with YouTube TV you have a cable option as well. I would think the cable option is something they'd rather invest in though. Again, Google is more of a hardware company to a certain degree...laptops, Google Fiber, and more recently Google Fi for cell service. Getting into sports is something they could probably afford to do, but it would be a significant departure from their business model. That and YouTube TV's value/potential would take a hit if ESPN, FOX, and the like decided they didn't want to be on the platform because they felt encroached upon.
Netflix is more interesting to me because of their delivery method. They could do it, but haven't shown any interest to date. I suspect the profit margin is not in keeping with what they're used to doing. What I would bet on though is their long term outlook would be dependent upon Amazon's foray into the market. If Amazon jumps in and is successful then I think Netflix will feel compelled to compete. After all, Netflix is purely an entertainment platform. They're not like the other companies that built their reputation on a different business.
And that brings us to the final "A." Amazon is the threat here because they've already shown a desire to get in the business and they could possibly gain other advantages from utilizing sports.
What Amazon can do that others can't is something they've already accomplished on a smaller scale. Their platform is a thing of beauty for several reasons, but one of them is their ability to both deliver and advertise content to the same customers. They could add to that platform by driving traffic with live sports. They would essentially cut out the middle man. They'll certainly give other companies the privilege of advertising on their platform during sports broadcasts, but only if Amazon is the retailer that sells the products. Their ability to target audiences according to any demographic you can imagine will also play into that because small, medium, and large companies will have an option to get in on the game...as long as Amazon is getting a cut of the retail business. Amazon could give the viewer the option to buy something immediately as soon as they've seen an ad for it. It's brilliant actually and that's what makes Amazon a factor.
Live sports drives traffic > fans watch said content > advertisers of all sizes clamor to get in front of that audience which drives up the value of ad buys > Amazon gets a cut of everything sold because their primary business is retail
Amazon will get something extra for all the new subscriptions to Amazon Prime they sell, but I think all that is gravy to be honest. Their real business is retail.