Per reports, Facebook (FB - Free Report) has won rights to live stream 20 Major League Baseball (MLB) Friday night games. The terms of the deal weren’t disclosed.
Media reports have quoted Facebook's head of global sports partnerships, Dan Reed saying “Baseball games are uniquely engaging community experiences, as the chatter and rituals in the stands are often as meaningful to fans as the action on the diamond." He further added“By distributing a live game per week on Facebook, Major League Baseball can re-imagine this social experience on a national scale."
News of probable Facebook-MLB collaboration first surfaced in February. Last year, Facebook had bid for National Football league (NFL) streaming rights that were eventually won by Twitter (TWTR - Free Report) . Facebook went on to live stream some basketball and table tennis matches on its platform. This year, NFL rights were securedby Amazon (AMZN - Free Report) .
Streaming live sports is a highly lucrative opportunity as it helps to boost engagement levels (especially millennials) and brings more advertisers. All social media sites are scrambling to get more and more sports-oriented live streaming on their platform. So much that despite failing to win NFL games streaming rights this year, Twitter secured rights to offer its users streaming of official NFL video and other exclusive content from the games.
Facebook is aggressively promoting “Live” in order to boost its top line. Facebook is trying to bring more video content to attract more ad dollars. Ad revenues contribute over 95% to Facebook’s total revenue. The company intends to capture the opportunity presented by the ever-increasing video viewing on social media platforms. CEO Mark Zuckerberg said that video has emerged as a “megatrend” on the same lines as mobile.
Zacks Rank and Share Price Movement
At present, Facebook has a Zacks Rank #3 (Hold). The company has outperformed the Zacks categorized Internet Services industry in the last one year. The company’s shares increased 25.83% compared with the industry’s gain of 20.82%.
Stock to Consider
A better-ranked stock in the broader technology sector is Mercadolibre, Inc. (MELI - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Mercadolibre has an average positive earnings surprise of 26.74%.
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