Amazon should acquire CBS to challenge Netflix, analyst says

The American e-commerce giant Amazon should consider purchasing an established media company such as the CBS in order to erect its “Prime Video” streaming services as it seems to be a rival to video streaming portals such as Disney and Netflix.

However, the Amazon video services have over 100 million paid global subscribers, the “Prime Video” component seems like being away from reach and usage when kept to a comparison with the leaders of the video streaming industry such as Netflix. A senior research analyst Michael Nathanson postulates that the e-commerce giant needs to develop high-quality video content that oscillates with the expectations of streaming customers.

“Rather than build it out over time, we wonder if Amazon would embrace a ‘buy it’ model and seek to acquire a traditional media company with content creation skills, deep proprietary content libraries, sports production capabilities, and burgeoning OTT ambitions,” – wrote Nathanson for his clients.

In the recent times, the video streaming company Netflix has grown to a height with investments in original content bewitching customers. 125 million subscribers pay to the Netflix in order offer the video streaming services. The company has shared its share data which has been doubled this year.

Disney is also hovered to step into the race of media streaming. In 2019 the media company is set to introduce its direct to consumer video service that would feature the complete Disney, Pixar and Marvel content. While the company is heard to be into a cold war with Comcast for laying hands on a few movie and television properties which would shore its offering in the future.

“If CBS is given their freedom from NAI’s control (which we doubt), we believe that an M&A premium would quickly emerge,” – wrote Nathanson.

AT&T one of the most common American telecommunications company showed interest towards acquiring CBS prior to paying $85 billion bid for the purchase of Time Warner.

by Sawan Kumar on June 27, 2018

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