Amazon Investment in Yankees Network Could Threaten Sports TV Bundling
The New York Yankees stand on the first base line during the national anthem prior to Game Three of the American League Division Series against the Boston Red Sox at Yankee Stadium on October 08, 2018 in the Bronx borough of New York City. (Photo by Elsa/Getty Images)
Photographer: Elsa/Getty Images
If Amazon.com Inc. provides the New York Yankees with capital support to acquire the remaining stake in its YES network, the move may mark the beginning of a new sports era.
In fact, the pairing of the two entities could be the "step towards unbundling regional sports networks," writes Morgan Stanley’s Benjamin Swinburne in a research note. While the investment itself is "somewhat unremarkable" -- particularly given Amazon’s massive amount of free cash flow -- the longer-term implications for the TV and sports business could be massive.