Amazon is the current front-runner to land the next NFL Sunday Ticket contract with current holder DIRECTV uncertain whether to make a bid, according to a CNBC report.
The report says Amazon is in talks to secure the contract after DIRECTV’s current deal with the NFL expires after the 2022 season.
The etailer “is seen as the front-runner by others involved in talks with the league, according to people familiar with the matter,” CNBC states.
The financial news network adds that ESPN and Apple are also interested in purchasing the Sunday Ticket contract, but the Comcast-owned Peacock streaming service does not appear serious about obtaining the package of out-of-market Sunday afternoon games.
DIRECTV has offered the Sunday Ticket as an exclusive since its inception in 1994, but CNBC reports that the satcaster is still weighing whether it’s financial sound to seek a renewal. The NFL may want as much $2.5 billion a year in the next Sunday Ticket agreement, CNBC says.
“DIRECTV is still considering its options but may not have the balance sheet to compete with Amazon or Apple whose market valuations are close to or above $2 trillion, two of the people said,” states the report.
At $2.5 billion a year, CNBC estimates that DIRECTV would need 5 million subscribers at $300 each to be profitable. The satellite TV service now charges $293 a year for the base Sunday Ticket package, which is estimated to have between two and three million subscribers.
The Wall Street Journal and other publications have reported that DIRECTV agreed to pay roughly $1,5 billion a year when it signed an eight-year contract for the Sunday Ticket in 2014.
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