Tech behemoth Amazon.com (AMZN) is set to start offering rival Apple’s (AAPL) Apple TV+ on its Prime Video Streaming service in the U.S. later in October. Apple TV+ will be available as a premium, add-on subscription service costing $9.99 per month for Prime viewers. The deal will help both Amazon and Apple attract more viewers as well as increase the viewing time spent on their streaming offerings.
Prime members will be able to subscribe and view the Apple TV+ shows directly on the Prime Video app and will not require any other app downloads or cable connection.
Benefits of the Deal to Amazon and Apple
Amazon wants to make Prime Video a one-stop streaming giant that offers nearly all online streaming choices to customers, so they don’t have to go to other streaming services. It hosts several other streaming services, including HBO Max, Discovery+, Showtime, MGM Studios, and Paramount+ (PARA) among roughly 100 add-on subscription options in the U.S. Amazon and Apple already have partnerships on a number of fronts, such as Amazon’s Fire TV family offering native Apple TV+ app.
Amazon usually takes a cut from the subscription service revenue for services provided on Prime Video, but details of the same remain unknown.
Meanwhile, Apple wants to increase the viewership of its Apple TV+ streams, which include some popular original series such as Ted Lasso, The Morning Show, and Severance. Apple TV+ also streams Major League Soccer and Major League Baseball sporting events, which will act as a big boost for Prime members to opt for the service.
However, Apple TV+ stands far behind in the streaming race, lagging bigwigs such as Netflix (NFLX), Disney+ (DIS), and Amazon Prime Video. The iPhone maker has always tried to garner viewership with its in-house entertainment series and has even won several Emmy awards for its shows. Having said that, heated competition in the streaming space, rising package costs of different streaming services, and sticky inflation have impacted customer spending on streaming shows.
Is Amazon a Good Stock to Buy Right Now?
Wall Street is indeed highly optimistic about Amazon stock’s trajectory. On TipRanks, AMZN stock has a Strong Buy consensus rating based on 43 Buys versus two Hold ratings. The average Amazon.com price target of $222.95 implies 20.4% upside potential from current levels. Year-to-date, AMZN shares have gained 21.9%.
Is AAPL Stock a Good Buy?
Wall Street remains divided on the world’s largest trillion-dollar company, as demand for iPhones remains subdued in the U.S. and China. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 23 Buys, ten Holds, and one Sell rating. Also, the average Apple price target of $248.90 implies 8.4% upside potential from current levels. AAPL shares have gained 19.7% so far this year.
