CBS Corporation (CBS - Free Report) has reached an agreement with the leading sports streaming service provider fuboTV that will enable it to live-stream the U.S.’s most-watched broadcast network, CBS sports and entertainment channels. However, the value of the deal has been kept under wraps.
Per the agreement, all networks in the deal will not only be available for live stream but will also be accessible on-demand, through fuboTV's entry-level "Fubo Premier" bundle. Subscribers can live stream sports and entertainment channels like Sports Network, Pop and CBSN, The CW, CBS News' 24/7 digital streaming news service.
fuboTV customers can stream CBS channels via mobile phones, tablets and also through Fire TV, Chromecast, Apple TV and Roku. CBS popular sports programming like “NFL on CBS”, “Thursday Night Football," "NCAA Division I Men's Basketball Championship," "SEC on CBS," Golf, and "Showtime Championship Boxing".
Notably, the deal will boost its subscription-based revenues considering the fact that fuboTV is a popular sports streaming service provider. CBS focuses on increasing subscription-based revenues, which is likely to drive long-term growth. Additionally, the company has an extensive library of premium content that it monetizes over multiple platforms. Evident from its launch of over-the-top (OTT) services, namely CBS All Access and CBSN, alongside launching an independent streaming service for its premier channel, Showtime. The company also boasts several new prime time shows as well as reruns of hit series along with NFL on Thursdays and Sundays.
CBS shares which were struggling in the past six months received a much needed boost following the announcements, with stock gaining more than 3% yesterday. However, in the past six months the stock has declined 3.3%, underperforming the Zacks categorized Broadcasting-Radio/TV industry’s gain of 6.7%.
CBS currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks worth considering include The New York Times Company (NYT - Free Report) , Netflix, Inc. (NFLX - Free Report) and NTN Buzztime, Inc. (NTN - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York Times has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 31.4%.
NTN Buzztime has an impressive long-term earnings growth rate of 20%.
Netflix has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 117.7%.
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