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Is Amazon Aiming at the Live Sports Video Sharing Space?

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Amazon.com, Inc. AMZN is reportedly trying to drum up some business in the live sports video streaming space.

Per a Bloomberg report on Friday, the company is trying to acquire rights to live stream sports events like tennis, rugby, soccer, golf and auto racing.

Preparing for the Move

Major players in the online TV space such as Netflix, Inc. (NFLX - Free Report) and Hulu do not run live streaming services and Amazon could use this opportunity to accelerate its push into this market.

The company could live stream on the Prime Video platform by selling subscriptions to sports leagues. It can also create a separate sports product to run it on its own or as an add-on to prime subscriptions.

Earlier this year, former Sports Illustrated executive James DeLorenzo joined Amazon to lead its sports division. The company also hired former YouTube executive Charlie Neiman to oversee sports partnerships and business development.

AMAZON.COM INC Price

The Competitive Atmosphere

If the reports are true, Amazon will be another technology company to go after the same pot of gold.

Last year, Yahoo! Inc. YHOO partnered with National Football league (NFL) to deliver the first-ever global live stream of an NFL game. The company has also live streamed Major League Baseball (MLB) and National Hockey League (NHL) games.  In April, Twitter, Inc. TWTR inked a deal to stream Thursday night NFL games for free.

Amazon eyes popular U.S. sports like baseball and basketball but most of the rights have been locked up by major broadcasters through long-term contracts. The demand for pay-TV packages is declining and media companies are increasingly shifting their focus toward sports rights to cope up with this headwind.

At present, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).

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