Amazon.com Inc. (NASDAQ:AMZN) is expanding its media strategy across live sports, theatrical films and streaming distribution as Prime Video and Amazon MGM Studios look to attract larger audiences and create more advertising and commerce opportunities.
• Amazon.com stock is showing weakness. What’s driving AMZN stock lower?
Live Sports Remain a Major Growth Driver
Mike Hopkins, head of Prime Video and Amazon MGM Studios, said live sports help Amazon gather large audiences and strengthen Prime Video.
Thursday Night Football ratings are up 11% from last year, while Amazon is preparing to launch NBA coverage on Prime Video.
Amazon is spending a combined $3 billion annually on NBA and NFL rights.
Hopkins told CNBC on Wednesday that large sporting events give Amazon more opportunities to sell targeted advertising and connect viewers with its broader retail and media businesses.
He said Amazon will remain selective about future sports rights and pursue opportunities where the economics and audience scale make sense.
The company also holds sports rights internationally, including Champions League coverage in the U.K. and Germany, Roland-Garros in France, and Copa do Brasil and Copa Libertadores.
Amazon Builds Its Own Theatrical Pipeline
Hopkins said Amazon decided to take more control of its movie output after buying MGM.
The company is targeting 15 theatrical releases per year and wants that business to generate profits independently from Prime Video.
Hopkins said the theatrical box office has recovered significantly and expects that improvement to continue.
He cited “Project Hail Mary,” which generated $80 million at the global box office, as an example of Amazon’s strategy of developing films with recognizable talent and controlled budgets.
Amazon is also preparing to release “I Play Dirty” in November.
Skydance Adds Competition but Also Partnership Opportunities
The combination of Warner Bros. Discovery and Paramount under Skydance Corp (NYSE:SKYD) creates a larger media competitor with more than 30 planned theatrical releases annually and a broader streaming footprint.
Hopkins nevertheless emphasized Amazon’s existing relationships with the combined company.
Warner Bros. and Paramount produce shows for Amazon, including Reacher and Jack Ryan, while Prime Video also distributes Paramount+ and HBO Max through its platform.
Hopkins said Amazon’s strategy is to make Prime Video a “one-stop shop” for consumers’ streaming needs rather than rely only on its own content.
See More:
Top Growth Stocks
Hopkins Sees Multiple Paths to Growth
Amazon’s media strategy now rests on several growth drivers: large live-sports audiences, a growing theatrical slate, advertising, third-party streaming distribution and links to Amazon’s retail ecosystem.
Hopkins said the company will continue to pursue opportunities that expand reach while maintaining financial discipline.
AMZN Price Action: Amazon.com shares were down 1.68% at $254.23 at the time of publication on Wednesday, according to Benzinga Pro data.
Image via Shutterstock
Recent Comments