Facebook (FB) Strikes Exclusive Media Rights Deal With UEFA
Facebook FB is betting big on live streaming as it continues to strike back-to-back deals. The social media giant recently inked another exclusive deal with the Union of European Football Associations (UEFA) for an undisclosed amount.
Per UEFA, Facebook will air 32 live matches every season starting Aug 15, 2018 till 2021 in the Latin America region. At no additional cost, Facebook’s UEFA page will stream a few Champions League matches and the UEFA Super Cup Final. The deal also includes match highlights on Wednesday and match of the week programs.
Notably, Facebook has displaced Esporte Interactivo to air the Champions League matches in the region.
The deal comes on the heels of Facebook and Spain’s elite soccer division, La Liga’s deal to air the upcoming three seasons of the tournament in the Indian sub-continent for no additional cost.
Facebook is expected to benefit from its investments in emerging markets like Latin America, by enhancing user interests, as most of the region’s top players are associated with the European clubs and compete in the Champions League matches every year.
Facebook is focusing on live streaming deals as it intends to capture the opportunity presented by ever-increasing video viewing on social media platforms, which will add to its subscriber base and drive top-line growth.
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Latest Deals in the Domain
Facebook has landed the live broadcast rights for the Premier League — the England based soccer league — in Thailand, Vietnam, Cambodia, and Laos, earlier this year, reportedly from 2019 to 2022. Additionally, Facebook has signed a deal with Major League Baseball (MLB) to stream 25 games on Watch this season.
Live sports and live video will help Facebook further monetize and add to its 2.23 billion monthly active users. Moreover, Facebook’s efforts to incorporate more and more video-oriented content to bring in more ad dollars bode well for the company.
Also, deals like this are hugely important in an entertainment age being shaped by the likes of Netflix NFLX and Hulu.
Nevertheless, competition from other social media sites is intensifying. All players are trying to lure users to watch more sports-oriented live streaming on their platform.
Twitter TWTR announced more than 30 new and renewed deals for live and original programming and Amazon AMZN also announced a groundbreaking deal for the exclusive rights to broadcast a small but important set of Premier League matches in the UK.
Additionally, the company’s heavy spending in areas like safety & security, augmented reality/virtual reality (AR/VR), marketing, and content acquisition is expected to hurt profits.
Facebook currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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