This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Thursday’s bear market was ugly, with many stocks dropping notably. Amazon (NASDAQ: AMZN), however, wasn’t one of them. Its shares were trading up by over 1% in contrast to a declining S&P 500 index; a new video-streaming content deal appears to be a key reason.
So what
Amazon’s deal is with Comcast‘s (NASDAQ: CMCSA) Hollywood heavyweight Universal. Under the terms of the multiyear arrangement, Amazon Prime Video — the company’s streaming service — will offer recent live-action Universal movie releases after their premieres on Peacock (Comcast’s own streamer).
Amazon will be able to screen the Universal movies eight months after their opening days in cinemas, for a duration of 10 months. This is to follow the Peacock debut of those films, which will occur four months after opening day.
Additionally, Amazon has secured the rights to screen Universal releases from this year and last year on its IMDb TV, the free-of-charge streamer connected to its popular IMDb film and TV portal.
The financial terms of the deal were not disclosed.
Now what
Every streaming video operator wants to be Netflix in terms of gotta-see-it content and prominence. Amazon Prime Video isn’t there yet, with a library that is quite scattershot and offers few recent marquee titles included in its base subscription.
Having recent, big-budget movies and franchises like F9 (the latest installment in the seemingly eternal Fast & Furious cars-and-crime series) will garner Prime Video/IMDb TV new attention and publicity. Perhaps it’ll even help draw significant new viewership to the for-pay Prime Video.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Why Amazon was outpacing the market on Thursday appeared first on The Motley Fool Australia.
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Eric Volkman has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Comcast and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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