Yahoo Finance Amazon Boosts Sports Portfolio With Champions League Rights
Amazon AMZN recently obtained the broadcasting rights of European soccer Champions League matches in Germany, thereby enhancing its sports content portfolio.
Reportedly, the matches will be streamed on Tuesday evenings from 2021 for the 2021/22 season.
The latest achievement bodes well for the company’s continuous focus toward strengthening presence in the streaming market of Germany. Notably, the country is Amazon’s second largest market outside the United States.
Further, streaming Champions League matches is likely to drive Prime subscription in the country, which in turn will drive its top line.
Growth Prospects
Per a report from Statista, the video streaming space in Germany is expected to generate revenues of $980 million in 2019. Further, the figure is expected to reach $1.1 billion by 2023.
Further, user penetration for 2019 and 2023 is pegged at 24.54% and 26.3%, respectively. We believe the latest move is likely to aid Amazon in reaping benefits from this promising market.
Furthermore, it will provide the company a competitive edge against Comcast CMCSA in Germany. We note that Comcast’s Sky currently holds the broadcasting rights of Champions League.
Additionally, the move will strengthen the company’s presence in the booming European video streaming market, which as per a report from Statista, is anticipated to generate revenues of $7.2 billion in 2019.
Further, the figure is expected to go beyond $8 billion by 2023, witnessing a CAGR of 2.8% between 2019 and 2023.
Also, user penetration for 2019 and 2023 is projected at 24.5% and 27.6%, respectively.
Expanding Sports Content
Amazon is leaving no stone unturned to expand its live sports portfolio worldwide. This is likely to strengthen its competitive position in the global streaming space against Disney DIS.
We note that Disney’s sports-focused streaming service ESPN+ has gained solid traction, primarily owing to content strength. The service streams MLB, NHL and MLS games, Grand Slam tennis, boxing, PGA Tour golf, college sports, international rugby, and cricket, among others.
Nevertheless, Amazon’s strengthening sports content offering remains a major positive. The company has started streaming the English Premier League after winning the rights to 20 matches a season.
Further, the e-commerce giant has secured rights for the U.S. National Football League (NFL). Additionally, the company has launched MLB.TV on Prime Video Channels for Prime members in the United States.
Moreover, Amazon Prime Video live streams AVP league and the Laver Cup tennis tournament.
All these endeavors position Amazon well against Netflix NFLX, which dominates the worldwide streaming market but has no exposure to sports streaming field.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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