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" [ad_1]\r\n<br><div><p>Apple ( AAPL ) and Amazon ( AMZN ) have poured billions of dollars into sports media rights in recent months, outbidding traditional competitors and spiraling the streaming wars into the next phase of the battle.</p><p>One Wall Street analyst believes the tech giants' spending could cannibalize the broadcast industry.</p><p>\"They can actually destroy the broadcast business because they have other businesses that are actually going to be profitable or higher,\" Laura Martin, senior media and Internet analyst at Needham and Company, told Yahoo Finance. Live (video above).  \"iPhones are $1,300 these days. They can benefit from another part of their business that justifies spending that money on sports rights.\"</p><p>Amazon and Apple hold billions of dollars in cash on their balance sheets, and therefore the timeline for return on investment, if there is one, is very different from broadcasters and other broadcasters like Netflix ( NFLX ), Martin argued in a last note.  to customers.  For Apple and Amazon, the spend is not about direct return through subscribers, but the focus is on bringing more people into the various channels of the ecosystem.</p><p>Apple recently spent $2.5 billion on MLS broadcast rights and is reportedly in talks to spend at least $2.5 billion a year on NFL Sunday Ticket.</p><p>And this fall, Amazon enters the first season of its 11-year, $11 billion bet on sports broadcasting with the NFL's Thursday Night Football.  Google ( GOOGL ) and Amazon have also approached America's biggest sports league for Sunday broadcast rights, while broadcast battles for international soccer and college football are also underway.</p><p>The latest round of NFL broadcast rights, which have been led by traditional tech giants rather than broadcast conglomerates, has marked a material shift in the broadcast wars from broadband dominance to an industry driven by Silicon Valley.  Martin noted that Apple and Amazon will be the winners of the streaming wars because they have \"virtually unlimited resources.\"</p><p><button class=\"link caas-button collapse-button\" aria-label=\"\" title=\"\" data-ylk=\"elm:readmore;slk:Story continues\">The story continues</button></p><p>\"They should never reach profitability in their broadcast business,\" Martin said.  \"Oftentimes they do these, they do these rights deals to drive iPhone sales or to drive major registrations because that's doubled the average e-commerce sales.\"</p><p>Disney ( DIS ), which owns ESPN, could also maintain its position as a player in the space because of its ability to market homegrown brands, she said.  From Disney characters like Cinderella to ESPN's prominence in the world of sports, the company has familiarity with consumers.</p><figure class=\"caas-figure\"><div class=\"caas-figure-with-pb\" style=\"max-height: 567px\"><div><div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:59%;\"><img class=\"caas-img caas-lazy has-preview\" alt=\"A man walks past an Amazon Prime Video logo during a launch event in Mumbai, India, April 28, 2022. REUTERS/Francis Mascarenhas\" src=\"https://s.yimg.com/ny/api/res/1.2/jOjfV1ZzJmzcYdxMFtL9vA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU2Nw--/https://s.yimg.com/os/creatr-uploaded-images/2022-08/e75c70f0-180d-11ed-bf16-aecb04ce6527\"/><noscript><img alt=\"A man walks past an Amazon Prime Video logo during a launch event in Mumbai, India, April 28, 2022. REUTERS/Francis Mascarenhas\" src=\"https://s.yimg.com/ny/api/res/1.2/jOjfV1ZzJmzcYdxMFtL9vA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU2Nw--/https://s.yimg.com/os/creatr-uploaded-images/2022-08/e75c70f0-180d-11ed-bf16-aecb04ce6527\" class=\"caas-img\"/></noscript></div></div></div><p><figcaption class=\"caption-collapse\">A man walks past an Amazon Prime Video logo during a launch event in Mumbai, India, April 28, 2022. REUTERS/Francis Mascarenhas</figcaption></p></figure><p>Along with Hulu, which has valuable Netflix-like offerings, Disney can combine three services into one with its combination of ESPN+, Disney+ and Hulu.  Analysts have told Yahoo Finance in the past that ESPN+'s price increases are likely to drive more bundled subscribers.</p><p>This bundled package could be a positive catalyst for Disney, according to Martin.</p><p>\"Part of their case is that they can come together,\" she said.  \"Churn is what's killing you. As competition increases, consumers stay shorter on your service because they watch what they want, they turn it off and sign up or another service to watch what they want to watch that month. Churn you kills. What's great about the Walt Disney Company is that they have sister subsidiaries.\"</p><p><em>Josh is a reporter and producer for Yahoo Finance.</em></p><p><strong>Click here for the latest trending stocks on the Yahoo Finance platform</strong></p><p><strong>Click here for the latest stock market news and in-depth analysis, including events that move stocks</strong></p><p><strong>Read the latest financial and business news from Yahoo Finance</strong></p><p><em>Download the Yahoo Finance app for </em><em>Apple</em><em>    or </em><em>Android</em></p><p><em>Follow Yahoo Finance at </em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https://twitter.com/YahooFinance\" data-ylk=\"slk:Twitter\" class=\"link \"><em>I tweet</em></a><em>, </em><em>Facebook</em><em>, </em><em>Instagram</em><em>, </em><em>Flipboard</em><em>, </em><em>LinkedIn</em><em>AND</em><em>    to YouTube</em></p></div><script async src=\"//platform.twitter.com/widgets.js\" charset=\"utf-8\"></script><script async defer src=\"https://platform.instagram.com/en_US/embeds.js\"></script>\r\n<br>[ad_2]\r\n<br><a href=\"https://finance.yahoo.com/news/apple-amazon-destroy-streaming-business-analyst-183202052.html\">Source link </a>"
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