Amazon is looking to charge advertisers $2.8M for packages that include 30-second spots during the "TNF" games it will "stream live to its Prime customers this coming season," according to sources cited by Jessica Toonkel of REUTERS. Amazon is paying $50M "to the NFL to stream this season's 10 Thursday night games." A source said that for each game, Amazon "can sell 10 30-second spots." The spots "run on the live-stream while local ads air on network TV." Under the terms Amazon is "offering, buyers also get to run ads on Amazon.com throughout the football season." National spots "run by network broadcasters will also be shown on the live-stream." It is "not clear if Amazon will be able to sell the ads at the intended price, or will be able to make a profit from them." Its pricing "appears to be lower than Twitter's," which charged buyers $2-8M for ad packages that "included the games as well as spots on NFL highlights." Sources said that Amazon's ad packages are "higher than the $550,000 to $590,000 that NBC and CBS typically charge for their on-air national ads" (REUTERS, 6/22). CNBC’s Julia Boorstin said Amazon, "just like Twitter last year, is likely much more interested in what the NFL will do to build its reputation for live TV and what that can mean for its Prime subscriber numbers than in actually turning a profit on those particular rights." CNBC’s Mike Santoli: "Like so many things with Amazon, it’s about a long-term play" ("Squawk Alley," CNBC, 6/23).
EARTH MOVERS: RECODE's Rani Molla wrote when Amazon "makes moves, retailers feel it." In the wake of the Nike-Amazon deal this week, competing publicly-traded sports retailers "lost over" $1B in market value in just one day as the stock market "reckons how badly" the company's deal with Nike might "affect other major Nike sellers" (RECODE.net, 6/22). CHARLOTTE AGENDA's Andrew Dunn cites data from asset management firm Piper Jaffray estimating Amazon Prime penetration at an "unbelievable" 60% of U.S. households, and the service "reaches as much as three out of every four of the highest-earning families" (CHARLOTTEAGENDA.com, 6/23). However, NPD analyst Matt Powell tweeted, "Apparently the stock market thinks Nike sold no shoes on Amazon. In fact, Nike is the largest brand sold on Amazon, all through marketplace" (TWITTER.com, 6/23).
