Amazon.com Inc. AMZN recently announced a multi-year deal with Xilam Animation. The terms of the deal were kept confidential. This deal will expand the archive of children’s shows on the company’s video streaming site — Amazon Prime Instant Video India.
Amazon Instant Video is a digital video streaming and download service that lets users rent, buy or subscribe to a range of video content.
Over the last one year, shares of Amazon have been steadily treading higher. The stock has returned 28.97% compared with the Electronic Commerce industry’s gain of 24.49%.
The deal will make Prime Instant Video India the exclusive online subscription service to stream all four existing seasons and the three upcoming seasons of the most popular animated series Oggy & the Cockroaches and Zig & Sharko.
Oggy & the Cockroaches is an animated comedy series for kids featuring a chubby cat named Oggy and three pesky roaches: Joey, Dee Dee and Marky. It explores the misadventures and confrontations between the cat and roaches in a hilarious way.
The other show, Zig & Sharko is about a hyena named Zig who lives on a volcano island with his crab pal, Bernie. Zig is busy making plans to trick a beautiful mermaid, Marina, whom he wants to eat but is always interrupted by a shark named Sharko.
In addition, Prime members in India will also have access to Xilam Animation’s other top-rated kids’ shows like Floopaloo Where Are You, A Kind of Magic, If I Were An Animal, Paprika and The Daltons.
Nitesh Kripalani, Director and Country Head of Amazon Video India said, “Amazon Prime Video India is delighted to partner with Xilam Animation, creators of the world-famous animated series, ‘Oggy & the Cockroaches’ that continues to entertain kids for nearly 20 years”. He added that “This is an important milestone in the journey to offering the best kids’ entertainment to our Prime members.”
Xilam Animation Deal to Drive Amazon Digital Media Sales
The world’s biggest online giant is taking the necessary steps to expand its user base in different nations and thereby increase its sales. We believe that expanding the Prime Instant Video archive is one of Amazon’s key strategies. It has been striving to boost its digital media sales and attract new users.
The addition of these new upcoming animated series will boost Amazon’s program line-up, making Prime Instant Video India more attractive to viewers. Additionally, this deal is expected to give the company a competitive edge over Netflix NFLX and Hulu which already have popular kids’ show sections. Moreover, it will help Amazon to expand its footprint in the growing streaming market at a much faster rate.
Zacks Rank & Stocks to Consider
Currently, Amazon has a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry are Mercadolibre, Inc. MELI sporting a Zacks Rank #1 (Strong Buy) and Cognex Corporation CGNX carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercadolibre delivered a positive earnings surprise of 23.58% on average in the past four quarters.
Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
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