Facebook Bows Out of Bidding War for Big-Time Sports — For Now
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Facebook is backing away from the high-priced market for big-time sports, setting the social network apart from other digital media companies and drawing a line in the sand for the major leagues.
Leagues including the NFL and Major League Baseball are increasingly looking to non-traditional broadcasters like Twitter, Amazon and Verizon to help reach viewers who don’t subscribe to cable. Recently, Amazon agreed to pay $50 million for the NFL’s 10 Thursday night games, and Verizon will reportedly pay about $21 million to stream an NFL game in London. Twitter recently showcased its sports content for media and advertising executives, including new shows and deals with the PGA and with the WNBA.
But Facebook executives emphasized that, while the social network may make some strategic investments in “anchor content,” it is betting on long-form video. Chief Executive Officer Mark Zuckerberg said on an earnings call Wednesday that the company plans to pay for content by sharing advertising revenue. Traditionally, the major leagues have rejected that model, preferring to simply sell their rights for ever-higher fees.
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