Amazon (AMZN - Free Report) is leaving no stone unturned to bolster the video streaming business.
Recently, its film production division, Amazon Studios, announced the decision to shoot a new TV series based on J.R.R. Tolkien's The Lord of the Rings in New Zealand.
Though the pre-production work has already started, the production on the series will begin in Auckland in the coming months.Notably, the series will explore new storylines preceding J.R.R. Tolkien’s The Fellowship of the Ring.
The executive producers and showrunners for the series are J.D. Payne and Patrick McKay. Lindsey Weber, Bruce Richmond, Gene Kelly, Sharon Tal Yguado, Gennifer Hutchison, Jason Cahill, and Justin Doble are the executive producers.
Amazon Instant Video is a digital video streaming and download service that lets users rent, buy or subscribe to a range of video offerings.
We believe the latest move bodes well for the company’s strong focus on bolstering footprint in the streaming world. Original shows and movies should continue to help the e-commerce giant to further bolster its already massive customer base.
Amazon.com, Inc. Price and Consensus
Booming Streaming Market
A Statista report suggests that this market is expected to generate $24.8 billion in 2019 and the figure is anticipated to reach $28.1 billion by 2023 at a CAGR of 3.2%. Further, worldwide user penetration in the video streaming space for 2019 and 2023 is projected at 14.5% and 16.2%, respectively.
All the above-mentioned strong endeavors will help Amazon Studios to further penetrate into the streaming space that holds immense growth potential.
However, competition in the streaming market continues to intensify with growing initiatives of companies like Netflix (NFLX - Free Report) , Disney (DIS - Free Report) , Apple (AAPL - Free Report) and Hulu, to name a few.
Nevertheless, growing streaming initiatives of Amazon Studios remains a major positive. As part of these initiatives, the company rolled out a free video streaming channel called IMDb Freedive at the beginning of this year. Notably, the channel is free of subscription and supports advertisements.
Solid momentum of Prime Video will continue to aid Amazon’s position in the streaming space.
As video streaming remains a very important factor behind the great success of Amazon Prime in the past few years, we believe the increasing number of original and acquired series will continue to benefit Prime.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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