Important points
A version of this article first appeared in the CNBC Sports Newsletter with Alex Sherman. This newsletter brings you the biggest news and exclusive interviews from the world of sports business and media. Sign up to receive future editions directly to your inbox. All eyes of the sports world will be on Thursday in Augusta, Georgia, where the first round of the Masters Golf Tournament will be held. For the first time, viewers can now watch live coverage of the tournament on Amazon Prime Video. Amazon is offering exclusive live coverage of the event from 1:00 PM to 3:00 PM ET on Thursday and Friday during Rounds 1 and 2. On all four days of the tournament, Prime Video will produce live coverage of Amen Corner, Augusta’s famous 11th, 12th, and 13th holes. Amazon’s “Inside Amen Corner” features advanced statistics and custom camera angles designed to show viewers how different players strategically attack the three holes. The streamer will broadcast the 15th and 16th holes for all four days and highlight specific groups of interest, but will not produce such content. Amazon is Augusta National’s fourth-ever media partner, following Paramount’s CBS. USA Network, owned by Versant, from 1982 to 2007. and Disney’s ESPN. Last year, the Masters, led by chairman Fred Ridley, engaged Paramount+ for two hours of exclusive streaming coverage Saturday and Sunday from noon to 2 p.m. ET. That will continue this year as well. The value of Amazon owning a portion of the rights to the Masters may not be as straightforward as it is for other sports venues. Sports typically serve several purposes for Amazon. These add value to Amazon Prime and connect to Amazon’s e-commerce business, which includes sports apparel and merchandise. And unlike most other programming on Prime Video and peer streaming services, sports are watched live, which means advertising costs are higher. The Masters may bring new subscribers to Prime Video, but the real value to Amazon is the halo effect. Owning even a few hours of exclusive Masters coverage increases the value of Prime Video’s entire sports portfolio. In terms of e-commerce, the Masters is as anti-commercial as any sporting event in history. Commercials during the broadcast are limited to approximately four minutes per hour and are exclusively from the Masters’ official sponsors: IBM, AT&T, Bank of America, and Mercedes-Benz. People familiar with the matter told CNBC that Amazon will not introduce anything to its streaming broadcasts to emphasize its e-commerce business. To do business with Augusta National, Amazon must follow the club’s rules. The agreement includes a guarantee from Amazon that the broadcast’s coverage will maintain its pristine, traditional image, the person said. The person requested anonymity because the discussion is private. “We look forward to a long relationship with Prime Video,” Ridley said Wednesday at the annual Masters press conference. “We need to look at non-traditional ways to promote the tournament, but more than that, we need to promote golf.” Ridley acknowledged there is a “tension” between respecting tradition and innovation, something Augusta struggles with every year. He cited the club’s decision to have YouTube creator Dude Perfect play Frisbee during the 2022 Amen Corner as an example of Augusta’s willingness to try different things to reach new audiences. “Looking back, I like them, but it might not have been the best idea,” Ridley said. “But when it comes to themes, we’re certainly going to look outside the box at times.” Amazon’s primary coverage on days one and two is very similar to that of ESPN and CBS. “They’re clearly optimizing what they think is the right fan experience, what they think is the right broadcast experience, to build something that’s incredibly valuable over the long term,” Jay Mullin, head of sports at Prime Video, told The Athletic’s Andrew Marchand last year after Amazon announced the Masters deal. Still, it’s clear that Masters wants streaming partners as part of the viewing experience. Amazon will also be collecting data on how golf is played on the service. Amazon got serious about golf on Black Friday with the Skins Game featuring Keegan Bradley, Xander Schauffele, Tommy Fleetwood, and Shane Lowry. Given Amazon’s seemingly unbridled desire for major sports-related content, Prime Video could be in the market for more golf if streaming viewers respond. Disclosure: CNBC and USA Network are divisions of Versant Media.
