Seattle Kraken-Amazon Deal May Hint At What’s Next For Local Sports Rights

Thursday’s news that the Seattle Kraken would be leaving its regional sports network (ROOT Sports) in favor of a local broadcast/streaming combo is not necessarily a novel idea. Fellow NHL franchises in Vegas and Arizona already went this route last season, and NBA teams like the Jazz, Clippers and Suns did as well. Just last week, the Chicago Blackhawks, Bulls and White Sox announced plans for a similar arrangement as well.

Where those approaches differ from the Kraken’s, however, is with regard to where the games will be streamed.

In these other cases, fans are able to watch via local broadcast or a separate new streaming service. For the Kraken, the approach is novel because the streaming service option is Amazon Prime Video — a subscription that one could assume a large number of people in Washington/Oregon/Alaska (where the games will be available) have already.

At least on paper, this seems like a solution for the long-time issue with regional sports rights, where teams and leagues are asking both casual and hardcore fans to introduce entirely new behaviors with a new service. By utilizing a service many already have, it’s removing the “new” hurdle presented by the Chicago-Stadium idea, ClipperVision and other services. Instead, it’s bringing the games directly to fans.

In recent years, Amazon has not-so-quietly initiated a smart regional sports play that could continue to expand with the wider RSN business imploding and the NBA and MLB looking for long-term solutions.

Prime Video has held local streaming rights for the Seattle Storm (WNBA) and Seattle Sounders (MLS) at various points. And this year, Amazon acquired a minority stake in Diamond Sports, making Prime Video a potential go-to service for fans looking for regional sports rights across the various Bally Sports networks.

We’ve previously discussed how RSNs help enhance consumer data for Amazon’s core retail business. But for audiences and leagues, it’s a more direct path to market than tacking on additional services (as Bally was asking fans to do with Bally Sports+). That matters a ton as consumers continue to look for a balance between having all of the services they want, while also not paying too much.

These endeavors, along with Amazon’s investment in Thursday Night Football on the NFL side, could also collectively serve as a test run for how Prime Video becomes an even bigger player in local sports rights.

It’s no secret that the NBA has wanted to reconstitute what its RSN strategy looks like for some time, and the league is also deep in conversations with various media entities around its next media rights deal. Amazon is not currently on its roster of partners, but both sides appear interested in some sort of arrangement. One potential option could see Amazon more directly serve as an RSN partner for numerous teams around the NBA. Or at the very least, be a more direct path toward fans signing up for the League Pass subscription service to access out-of-market games.

NBA League Pass, presented by Amazon Prime Video, could simply remove the “regional” nature of regional sports rights and shift the league’s local games to a more nationally marketable product. While fans have been able to subscribe to League Pass for years (and a lower price for recent seasons), it still requires either a separate subscription or an add on to a cable/satellite provider.

Handling through Amazon would present completely differently, especially if the league and streamer are able to simply forego local blackout rules. That’ll be tough for markets with local broadcast contracts intact. But for those leaning on RSNs? It could look much like what MLS Season Pass looks like on Apple TV+, with all games available regardless of market, on the service.

Since Amazon wouldn’t serve as the main TV partner for the NBA like Apple does for MLS, it could charge Prime members less for League Pass access, and immediately give a random weekday game like Pacers/Bulls a national platform it wouldn’t have had before.

As the NBA, in particular, is searching for the best way to a consistent national presence that can hold a candle to the NFL, diversifying partners is the best way to do so. And Amazon may be the most important part of that evolution. If Prime Video can help break down subscription hang-ups and “local” labels for fans, it quickly makes the league’s entire inventory of regular season games matter a whole lot more.