Amazon AMZN is leaving no stone unturned to bolster its presence in the booming worldwide streaming market on the back of its strengthening content library across various nations.
The company’s latest win of rights to broadcast the UEFA Champions League — Europe’s top football tournament in the U.K. — testifies to the above-mentioned statement.
Amazon’s video streaming platform, Prime Video, will stream Champions League matches on Tuesday nights for three years from the 2024-2025 season. More precisely, Amazon will stream one game per week and 20 matches per season.
The latest win bodes well for the company’s growing efforts to strengthen its live sports streaming content portfolio on Prime Video.
The streaming of Champions League matches will likely aid the company in attracting viewers to its platform, which, in turn, will boost the demand for Prime Video in the U.K.
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We believe that the latest move would expand the subscriber base of the Prime program in the underlined country, which has been acting as a key catalyst behind the growth of the company.
Consequently, this will drive the company’s subscription revenues, which, in turn, will aid its overall performance.
Notably, Amazon witnessed 11% year-over-year growth in its subscription services, which were $8.4 billion in first-quarter 2022.
In addition, strengthening Prime momentum will aid the company in winning investors’ confidence in the near term. Amazon has lost 34.3% on a year-to-date basis.
The latest achievement bodes well for Amazon’s growing efforts to strengthen its presence in the growing video streaming market of the U.K.
The company’s total investment in British television, films and live sports content has exceeded £1 billion or $1.2 billion over the past few years.
Hence, Amazon, which currently carries a Zacks Rank #3 (Hold), remains well-poised to capitalize on the immense growth prospects in the underlined market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per a Statista report, revenues in the U.K. video streaming space are likely to hit $3.2 billion in 2022. The figure is expected to see a CAGR of 15.5% between 2022 and 2026 and reach $5.8 billion by 2026.
Further, user penetration rates for 2022 and 2026 are pegged at 35.4% and 50.7%, respectively.
Given the upbeat scenario, not only Amazon but also streaming giants — Netflix NFLX, Disney DIS and Apple AAPL — are some noteworthy players in this promising market.
DIS’s Disney Plus is continuously witnessing solid customer momentum on the back of its impressive content library in the U.K., which include around 500 films, 350 series and 26 Disney Plus Originals.
The growing momentum of Disney Plus Star, which features more mature content from Disney-owned studios such as ABC and 20th Century Studios, remains another major positive.
Apple is also experiencing strong momentum on the back of its robust content portfolio comprising award-winning series, compelling dramas, groundbreaking documentaries, kids’ entertainment content and a rising number of originals.
Meanwhile, Netflix has been witnessing weak customer momentum in the country due to the loss of the right to stream some hit and popular shows, including Modern Family, to Disney Plus.
However, the company’s growing investments in content library expansion and deepening focus on creating original productions remain noteworthy.
Nevertheless, Amazon’s aggressive content expansion strategy, along with a growing focus on live sports streaming, is expected to continue aiding its competitive position against the above-mentioned players.
Strong retail benefits of Prime, including ultra-fast delivery services, strengthening pick-up services, and robust cashback and reward offers that make Prime more attractive, are likely to continue driving Amazon Prime’s momentum in the country.
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