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CBS Cheers NFL Fans, Gets Mobile Streaming Rights Till 2022

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CBS Corporation (CBS - Free Report) has now secured the rights to stream all NFL ON CBS games on CBS All Access subscription service, through 2022.

Moreover, smartphone users (including CBS’ cable, satellite, telco and vMVPD partners) can access NFL ON CBS games, starting this season, based on the extended agreement with the National Football League (NFL).

The games will also be available on the web through CBS.com and also, through connected devices, set-top boxes, smart TVs and gaming consoles.

However, CBS All Access users will only have access to NFL ON CBS games, which are broadcast in their specific local market.
 

CBS Corporation Price and Consensus

CBS Corporation Price and Consensus | CBS Corporation Quote

 

Content Strength Drives CBS All Access Subscriber Base

Sports have been key catalyst for CBS All Access subscription service. This was evident from the significant growth in new signups during the week of the National Collegiate Athletic Association (NCAA) Men’s Basketball tournament. Management stated that during Augusta Golf Masters, new signups surged more than 170%.

Hence, the availability of NFL games on smartphones is expected to boost CBS All Access subscriber base. The direct-to-consumer streaming service, which starts at $5.99 a month, has been a key driver behind the company’s growing subscriber base.

Moreover, strong entertainment content portfolio is driving subscriber base expansion. New signups jumped 100% year over year in the last reported quarter, driven by shows like Star Trek: Discovery, The Good Fight, and the Grammys.

Continuing investments on expanding original series content portfolio is expected to further drive subscriber growth in the long haul.  

Expanding International Footprint to Drive Growth

Apart from strong portfolio, CBS is expected to benefit from an expanding international footprint.

CBS All Access is now available in Canada. Apart from thousands of hours of current and library programs, also originals, subscribers can live stream CBSN, the company’s digital news network.

CBS also plans to launch the direct-to-consumer streaming service in Australia, late this year, leveraging its acquisition of Network Ten.

CBS expects to add more international markets going forward, which will further boost its subscriber base beyond the goal of 8 million (from direct-to-consumer streaming service) by 2020.

Zacks Rank & Other Stocks to Consider

Currently, CBS has a Zacks Rank #3 (Hold).

AMC Networks (AMCX - Free Report) , Roku (ROKU - Free Report) and Sirius XM Holdings (SIRI - Free Report) are better-ranked stocks in the same sector. All three have Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long term earnings growth rate for AMC Networks, Roku and Sirius is currently pegged at 5.64%, 17% and 15%, respectively.

 

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