There is speculation this morning following an analyst note from MoffettNathanson analyst Michael Nathanson that Amazon could be in the market to buy CBS.
Nathanson speculates that if Amazon was to buy a traditional media company, CBS would be the best fit.
It has traditional and digital sports rights to NFL, NCAA Football, and NCAA Basketball. Additionally, it already has OTT offerings from Showtime and CBS All Access. The former with originals like Billions and Homeland, the latter with with live access to over 300 affiliates, library of CBS shows, and originals like Star Trek.
By owning both a linear and digital channel, they could more aggressively bid for content rights which might not make sense for purely a digital offering.
Part of the philosophy behind the purchase would be to improve the content bundle for Amazon Prime Video. While some of the shows have had critical success, its usage pales in comparison to services like Netflix and Hulu.
Amazon Prime Video’s licensing agreement with HBO is over at the end of the year, so the service will need to find a way to replenish the content to keep up with other streaming services.