Twitter, Inc.TWTR for the first time live streamed a National Football League (NFL) game on Thursday with its broadcast of the match between New York Jets and Buffalo Bills. The broadcast went ahead smoothly without any technical glitches and was well received by the users of the micro-blogging platform.
Why this Move?
We note that, of late, Twitter has had been witnessing a marked decline in its advertising revenues coupled with sluggish user growth. The micro-blogging site is seeking ways to revive its user base as more users on the platform would equate to higher advertising revenues.
The company has earmarked three areas to pursue its live streaming interests namely entertainment, politics and sports.
During the company’s last quarterly earnings report, Adam Bain, Twitter’s Chief Product Officer had referred to the platform as “video-centric”. Additionally, Twitter has made it a point to make the video streams available to the non-members as well so as to increase viewership on its platform.
Will Live Streaming Work For Twitter?
As per some media reports, Twitter outbid Amazon.com Inc. AMZNand Facebook Inc. FB to get the livestreaming rights. However, during the quarter, it is slated to broadcast only two games. Moreover, out of the total inventory of 70 advertisements, it will sell only 15-20 advertisements.
We note that though live streaming sports is a lucrative option for Twitter right now, it is only a small player in the arena of sports broadcasting. If the company manages to attract more users to its platform, it will certainly have a positive impact on its revenues going ahead.
Zacks Rank & Key Picks
At present, Twitter carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology space is Avid Technology, Inc. AVID sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research