Yahoo Finance Disney & Amazon Set to Dominate Streaming Sports: Who Will Join Them?
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down Disney DIS and Amazon’s AMZN early lead in the streaming sports world. The episode then dives into other companies that are poised for success in the booming streaming industry.
Live sports have helped support traditional linear TV and cable amid the larger, Netflix NFLX-driven cord cutting revolution. The NFL, NBA, and many other leagues and sports are key components of the $70 billion television advertising industry. In fact, games account for roughly 85% of the most-watch broadcasts every year. Looking ahead, PwC expects sports rights in North America to reach $23.8 billion in 2022, up from $20.9 billion in 2019.
The firm noted that the entrance of new sports rights bidders will help drive up the prices. And this is where Disney, Amazon, and others come in. Clearly, Disney’s ESPN has been a sports powerhouse for years. But the April 2018 launch of ESPN+ has the company ahead of many of its peers including, NBCUniversal CMCSA, in the streaming space. Plus, its Fox FOXA deal is set to help Disney become a true streaming power.
Meanwhile, Amazon has spent heavily on its own streaming business that is part of its larger Prime membership unit that helps AMZN better compete against Walmart WMT, Target TGT, and others. The e-commerce giant is already the streaming home of the NFL’s Thursday Night Football and it is ready to make its Premier League debut in the UK in 2019. In the long-run, Amazon looks set to be a true streaming sports powerhouse with Jeff Bezos willing to spend money on a loss leader for now.
Along with these two behemoths, AT&T’s T Turner Broadcasting is making its presence felt in streaming sports through soccer and basketball. The company is also at the forefront of the micro-payment industry. Along with AT&T, Facebook FB, Twitter TWTR, YouTube GOOGL, and others are ready to play significant roles in streaming sports.
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The Walt Disney Company (DIS) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Fox Corp. (FOXA) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
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