Amazon plans to build a sports streaming app, Amazon Sports, as the company continues to focus on its Amazon Prime video service. This could mean the e-commerce giant separates its current sports offerings from Prime Video to offer them as part of a separate product.
Amazon Prime is one of the leading streaming services that has recently overtaken Netflix for first place in some countries. According to The Information, CEO Andy Jassy is determined to build on the service’s success and capitalize on the many sports deals the company has already secured.
According to the report, while no decision has been made, the company sees a standalone sports streaming app as a viable way to expand its market presence.
Amazon has discussed creating a standalone app to watch sports content, people familiar with the talks told The Information. The move comes as CEO Andy Jassy reaffirms the company’s streaming ambitions.
Interestingly, Jassy sees Prime as a key area that could see increased spending, despite the company looking for ways to reduce costs.
On the way to a new subscription?
Amazon may be thinking of new ways to monetize the billions of dollars in deals it has made to stream live sporting events, which so far it has mostly included in the standard Prime subscription. Jassy recently pointed out that streaming rights to live sporting events was an area where he would likely continue to spend even as Amazon steps up its efforts to cut costs in other areas of its business.
It’s unclear when Amazon might launch such an app or if it will charge a subscription to use it. It’s also possible that along with the app, Amazon will keep its sports content on Prime Video, but place it behind one paywall. Rights to broadcast live sports can be expensive, but such deals can also help attract more subscribers to streaming platforms.