A big day for streaming news today as Amazon (NASDAQ:AMZN) considers an angle that many before it have, and Warner Bros Discovery (NASDAQ:WBD) and Paramount (NASDAQ:PARA) gain ground accordingly. It’s an ad-supported streaming tier, and it’s already making some reconsider Amazon streaming accordingly.
The concept of FAST—Free, Ad-supported Streaming Television—has caught on big already, particularly with the likes of Netflix (NASDAQ:NFLX). So it’s little surprise to see that Amazon might want in on the action as well. Plus—in the move that’s sending Warner Bros Discovery and Paramount upward—Amazon is also considering adding these two to the roster of Prime Video Channels. The talks are still early-stage, certainly, but the concept alone is enough to capture imaginations.
The news comes at a good time for Warner, as another shake-up at CNN has left many questioning if the news arm can even survive going forward. With Chris Licht now out amid a reign perhaps best described as “tumultuous,” the end result is a news network with uncertain leadership at best. But if Warner can get a slot in the Prime Video roster, that should draw quite a few new eyes in its direction. That should also improve its ability to sell advertising. Same with Paramount; Paramount was already planning serious restructuring as several of its “Star Trek” series are coming to an end.
Interestingly, of the three streaming stocks, only Amazon was down in this afternoon’s trading. It lost 3.19%, but it remains a Strong Buy with a 10.88% upside potential thanks to its average price target of $135.91. Meanwhile, Warner Bros Discovery gained the most, up 5.66%. It also offers the best upside potential of all three stocks, as its $20.45 average price target gives it 59.95% upside potential.
