Amazon.com (AMZN) Elevates Prime Video With Sports Deal
Reportedly, Amazon AMZN is in talks with Diamond Sports Group to expand sports content on Prime Video.
Notably, negotiations between both companies are regarding a strategic investment in Diamond Sports and a multi-year streaming partnership.
If the deal happens, Prime Video will become the exclusive streaming platform for Diamond's extensive catalog of games of 40 major sports teams across the United States.
Moreover, Diamond holds local rights to a substantial portion of Major League Baseball, the National Basketball Association, and National Hockey League teams. This remains a major plus.
This strategic move underscores Amazon's determination to solidify its presence in the competitive sports streaming landscape.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon’s Growth Prospects
Apart from the latest move, Amazon is constantly making efforts to strengthen its relationship with the National Football League (“NFL”).
Recently, the company introduced Thursday Night Football’s (“TNF”) weekly alternate stream called Prime Vision, which shows various graphics on the screen during the game to allow viewers to see real-time stats and analysis.
We believe growing sports content will likely strengthen Prime Video's viewership, which, in turn, is expected to drive growth in its subscriber base.
Consequently, this will drive the company’s subscription revenues.
Amazon witnessed 14% growth in its subscription services sales, which were $10.2 billion in third-quarter 2023.
Our model estimates 2023 subscription sales of $41.3 billion, indicating growth of 17.4% from 2022.
Growing momentum across subscription services is expected to continue driving the company’s overall top-line growth.
Rising Competition
Given the upbeat scenario, not only Amazon but also streaming giants, including Disney DIS, Comcast CMCSA and FuboTV FUBO, are some noteworthy players in this promising market.
Disney’s focus on sports streaming, particularly Live Sports, remains noteworthy. For instance, its ESPN+ streams tournaments like the UFC Lightweight Championship, Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, Italy’s Serie A soccer and live sporting events, original shows, series and documentaries.
Meanwhile, Peacock, owned by NBCUniversal, a subsidiary of Comcast, streams games under the Sunday Night Football package and Premier League Soccer.
FuboTV is well known for its variety of sports coverage. Recently, it has been appointed as the Official Streaming Service Partner for the Women's National Basketball Association’s Chicago Sky.
Nevertheless, AMZN’s growing focus on live sports streaming is expected to continue aiding its competitive position against the players mentioned above.
The Zacks Consensus Estimate for 2023 is pegged at $570.75 billion, indicating a year-over-year growth of 11.04%.
Currently, Amazon sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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