When Twitter (TWTR) streams tonight's game between the New York Jets and the Buffalo Bills, much more will be at stake than just the bragging rights for two of New York state's pro football teams.
The game is the first installment of Twitter's pact to stream 10 National Football League and related content, as CEO Jack Dorsey looks for ways to grow the social media network's user base and prove its worth to advertisers.
"This is kind of a Hail Mary for Twitter," Mizuho Securities analyst Neil Doshi said.
Twitter has made many tweaks to its products recently, introducing direct messaging, making its feed more algorithmic and launching moments, which collects highly-trafficked stories. It is also reportedly planning to loosen its strict 140-character limit on tweets soon.
"None of these have done anything to drive significant traffic," Doshi said.
Thursday night's game is part of the NFL's "tri-cast" strategy. While Twitter streams the game, Comcast's (CMCSA) NBC and CBS (CBS) will broadcast it and the NFL Network will carry it on cable. Twitter also has deals with Major League Baseball, the National Hockey League, the National Basketball Association and others, and the social media site has also streamed video from the Democratic and Republican conventions and other non-sports events.
Cantor Fitzgerald analyst Youssef Squali suggested in a report that the "lack of traction" of Twitter's recent moves increases the pressure on leadership to deliver with its streaming deals. "Indeed, this may be [management's] last opportunity to reignite growth in users, engagement and monetization; failure to do so is likely to embolden shareholders to pressure the board to evaluate alternatives to maximize value, including M&A and taking the company private."
