Amazon’s (AMZN) streaming service, Prime Video, attracted 13.51 million viewers for the live broadcast of the NFL’s (National Football League) Black Friday game between the Kansas City Chiefs and the Las Vegas Raiders. This marked a 41% increase compared to the previous year’s Black Friday game broadcast.
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Building on this success, Amazon is focused on turning Black Friday into more than just a shopping event by adding more high-profile sports events to it. Next year, the company plans to stream one of the National Basketball Association (NBA) games on Black Friday.
This is part of Amazon’s larger strategy to invest in live sports. Notably, in 2021, the company secured Thursday Night Football rights for over $1 billion annually through 2033. Also, it recently signed an 11-year deal, worth $19.8 billion, with the NBA to broadcast games on Thursdays and Fridays. Additionally, the company holds streaming rights for the National Women’s Soccer League, WNBA, and Nascar.
AMZN Targets Ad Revenue Growth with Live Streaming
Amazon’s strategy to leverage live sports, such as NFL games, to attract new subscribers and advertisers seems to be working.
For instance, during the Black Friday game, Amazon sold out all ad slots. Many of these ads included interactive features that allowed viewers to access discounts or even add items directly to their Prime carts with a simple click of their remote control.
The increase in live-stream viewership is expected to boost both subscription and ad revenue.
Is AMZN a Good Stock to Buy?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $239, the average Amazon price target implies an 11.98% upside potential. Shares of the company have gained 40.48% year-to-date.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
