Is Verizon (VZ) Eyeing A Digital Streaming Deal With NFL?

Per a recent Bloomberg report, Verizon Communications Inc (NYSE:VZ) is close to a new deal with the National Football League (NFL) for digital streaming rights. This deal will allow Verizon’s subscribers easily access games on all devices — internet-connected TVs, tablets and phones.

The deal is a follow up of Verizon’s previous contract with NFL, which allowed streaming in devices with screens of 7 inches or less. This had limited the market base to smartphone users only.

Currently, Verizon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, with this deal Verizon will no longer remain the only provider of streaming games on mobile devices. Other cable and satellite companies along with streaming providers like DirecTV Now and Sling TV will enable customers to stream NFL games on their phones.

Currently, Verizon has mobile streaming rights to NFL’s Sunday day games, along with night games on Monday, Thursday, and Sunday. Verizon’s FiOS TV customers already have access to the games on their screens at home, owing networks like ESPN and NBC.

The financial terms and the duration of Verizon’s supposed contract with the NFL have not yet been disclosed.

What to Expect From the Proposed Deal?

NFL games are one of the most-watched TV shows in the country. We expect that this deal will boost Verizon’s increasing media assets, as the wireless carrier is focused on its online video and advertising strategies. The U.S. telecom behemoth has already acquired AOL and the internet-based assets of Yahoo (NASDAQ:AABA) to establish a strong foothold in the Telecom-Media space. As per a recent news, Verizon, Comcast Corp (NASDAQ:CMCSA) and The Walt Disney Company (NYSE:DIS) are eyeing some of the lucrative assets of Twenty-First Century Fox Inc (NASDAQ:FOXA) .

Important deals with NFL and the National Basketball Association should ramp up Verizon’s advertising revenues with newer customers.

Recent Deal

Verizon and AT&T (NYSE:T) have inked a joint deal with Tillman Infrastructure to build cell towers in the United States. Privately held, Tillman is the owner and operator of towers, small cells and smart cities infrastructures. Per the deal, Tillman will construct customized towers and lease it to Verizon and AT&T. Construction the towers will begin in the first quarter of 2018. Installation of equipment in the already completed sites will begin as soon as possible.

The structures will add to the overall communications infrastructure in the country and will fulfill the availability of towers in newer locations. The build-outs will also help the wireless carriers relocate equipment from their current towers.

The joint venture is likely to pose severe competitive threat to established tower companies in the domestic market — American Tower Corp (NYSE:AMT), SBA Communications Corp (NASDAQ:SBAC) and Crown Castle International (NYSE:CCI) Corp.

Price Performance

Despite such positives, Verizon portrays a disappointing price performance. In the past three months, shares of Verizon have lost 5.6% narrower than the industry’s decline of 8.0%.

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