*By Carlo Versano* Amazon is reportedly looking to expand its foothold in live programming, with an eye on the 22 regional sports networks that Disney ($DIS) must spin off as part of its acquisition of 21st Century Fox. CNBC first [reported](https://www.cnbc.com/2018/11/20/amazon-threat-to-buy-sports-rights-should-freak-out-media-companies.html) that Amazon ($AMZN) was a bidder for the portfolio of RSNs, which could be worth as much as $25 billion. Whether or not Amazon ultimately ends up with the channels is almost beside the point, according to analysts and reporters who spoke to Cheddar Tuesday. Tech companies encroaching on a programming segment that has long thrived on billion-dollar exclusivity deals between networks and cable companies is enough to worry any traditional media executive. Live sports is one of the few remaining strengths of the legacy media ecosystem, said Rich Greenfield, media analyst at BTIG Research. For many, sports are the only reason they haven't already cut the cord. If a big tech company were able to siphon off a large enough piece of that viewership pie, "the whole Jenga game collapses." For Amazon, it would be the extension of a grand strategy that has been both simple and consistent: drive more Prime subscriptions. Todd Spangler, an editor at Variety who covers media, said "the whole purpose here is to get you to buy more stuff." Because regional sports networks are beloved by serious sports fans as opposed to casual observers, Amazon's ownership of them could cause even the most reluctant Amazon shopper to sign up for Prime ー if that's what it takes to watch their favorite team. Still, upwards of $25 billion is a lot to spend on a "nice-to-have" feature, as Spangler said ー even for Amazon. And Greenfield pointed out that this would not be the first time a FAANG member dabbled in sports programming. Google ($GOOGL) lost out to AT&T's ($T) DirecTV for rights to the NFL Sunday Ticket in 2014 even though it was the highest bidder. And Amazon has a deal in place with the Premier League to stream games in the UK. Sports rights, among the most expensive media properties in existence, were long the holy grail for broadcast networks, and allowed cable companies like ESPN to become dominant forces in media. But as viewing habits change, tech companies, armed with cash and billions of built-in customers, could soon become the worldwide leaders. For full interview [click here](https://cheddar.com/videos/btigs-rich-greenfield-regional-sports-solves-a-problem-for-amazon).

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More