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Amazon (AMZN) to Boost Sports Streaming With Standalone App

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Amazon (AMZN - Free Report) is consistently working toward expanding sports streaming services to gain momentum among customers.

Per The Information report, Amazon is building a standalone application to stream live sports content. This is a testament to the above-mentioned fact.

The recent move shows that Amazon is exploring new avenues to invest in live sports for generating additional revenue streams.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Growing Sports-Streaming Initiatives

Apart from the recent move, the company is continuously building strategic partnerships to increase the viewership on its video-streaming platform, Prime Video.

AMZN has exclusive rights to stream popular live sports like the National Football League’s ("NFL") Thursday Night Football, Yankees baseball games and some Premier League soccer matches.

Amazon is making heavy investments in other sports content for complementing the live games.

Last month, Amazon introduced original sports talk shows on both Prime Video and its ad-supported streaming service, Freevee. The move is an effort to keep sports fans glued to its platforms.

The above-mentioned endeavors are likely to aid Amazon in attracting people interested in sports to its Prime Video platform, which, in turn, will bolster the Prime subscription rate.

This will contribute to the company’s subscription revenues and the total revenues.

Per an Enterprise Apps Today report, as of Nov 30, 2022, Amazon gained revenues of $5.16 billion from Prime Video.

Competitive Sports Streaming Market

Amazon, with its growing sports streaming efforts, remains well-positioned to capitalize on the growth prospects in the booming sports streaming market.

Per a Verified Market Research report, the global sports online live video streaming market is likely to hit $93 billion by 2030, witnessing a CAGR of 24.6% during 2022-2030.

The Zacks Rank #3 (Hold) company’s deepening focus in this promising market is likely to help it in winning investors’ confidence in the near term.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of AMZN have moved down 49.5% in the past year compared with the Retail-Wholesale sector’s decline of 29.2%.

Growing sports streaming initiatives are expected to help Amazon in gaining competitive edge against its peers like Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) and The Walt Disney Company (DIS - Free Report) , which are also making strong efforts to bolster their footprints in the underlined market.

Alphabet’s division Google recently collaborated with the NFL for exclusive NFL Sunday ticket rights. Per the terms, the NFL Sunday matches will be shown on YouTube TV and YouTube Primetime Channels. The NFL Sunday deal significantly increased Google’s sports credentials. The latest move is expected to help GOOGL gain momentum among football lovers. Alphabet has lost 38.9% in the past year.

Apple reached a 10-year contract with Major League Soccer in June. AAPL streams League matches on its TV+ platform. Additionally, Apple streams Major League Baseball on Friday nights during the regular season. Apple has moved 27% south in the same timeframe.

Disney renewed its deal with Formula 1. Per the terms, ESPN Networks in the United States will continue to show Formula 1 races through the 2025 season. Shares of DIS have moved down 43.8% in the past year.

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