Amazon Refutes Rumors

Despite industry predictions, Amazon’s (NASDAQ:AMZN) CEO says the company doesn’t plan to offer its video streaming service as a stand alone subscription service any time soon. The streaming service is currently part of Amazon’s Prime service package that also includes free two-day shipping for $79 a year. Amazon’s statement might come as a shock to Netflix (NASDAQ:NFLX) CEO Reed Hastings who had previously predicted that Amazon’s streaming service would be offered as a stand alone service and at a lower price than Netflix’s comparable offering.

Amazon’s Head of Digital Video Content Acquisition, Brad Beale, told Gigaom “The bundle of benefits that come with Amazon Prime make perfect sense to offer to customers. The way that Prime Instant Video is offered today—we’re going to continue that approach at least into the near future.” In addition to Netflix’s prediction, Amazon also fueled rumors of a standalone streaming service by entering into new content agreements with CBS (NYSE:CBS), NCBUniversal (NASDAQ:CMCSA), Fox (NASDAQ:NWS) (NASDAQ:NWSA), and earlier this week Viacom (NYSE:VIA)(NYSE:VIAB). The deals have made Amazon more competitive with that of Hulu (NYSE:DIS) and Netflix.

MediaBeat’s Tom Cheredar agrees with Amazon’s decision. “…Since the company’s main focus is to drive more sales to its retail business, it doesn’t make sense to provide ways for people to get only what they want without interacting with the main website. Right now Amazon doesn’t have to spend money promoting and marketing its Prime video for it to remain lucrative. That wouldn’t be true if it was a standalone service.” And although Amazon Prime is $79 a year, that’s still cheaper than Netflix’s streaming package which works out to just over $95 annually, AND you get free shipping on Amazon purchases.

Here’s how these stocks reacted to the news:

Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $185.54, up $0.56, or 0.3%. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 5,708,628 shares versus a 3-month average volume of 6,411,670 shares. The company’s trailing P/E is 135.43, while trailing earnings are $1.37 per share.

Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $123.93, down $0.91, or 0.73%. They have traded in a 52-week range of $62.37 to $304.79. Volume today was 4,617,310 shares versus a 3-month average volume of 8,658,760 shares. The company’s trailing P/E is 29.09, while trailing earnings are $4.26 per share.

CBS Corporation (NYSE:CBS): CBS shares recently traded at $29.90, up $0.13, or 0.44%. They have traded in a 52-week range of $17.99 to $30.08. Volume today was 5,022,288 shares versus a 3-month average volume of 6,729,560 shares. The company’s trailing P/E is 17.01, while trailing earnings are $1.76 per share.

Comcast Corporation (NASDAQ:CMCSA): CMCSA shares recently traded at $27.17, down $0.29, or 1.06%. They have traded in a 52-week range of $19.19 to $27.50. Volume today was 10,372,351 shares versus a 3-month average volume of 15,524,800 shares. The company’s trailing P/E is 19.55, while trailing earnings are $1.39 per share.

News Corporation (NASDAQ:NWS): NWS shares recently traded at $19.85, down $0.11, or 0.55%. They have traded in a 52-week range of $13.83 to $20.32. Volume today was 2,237,360 shares versus a 3-month average volume of 2,877,870 shares. The company’s trailing P/E is 19.48, while trailing earnings are $1.02 per share.

News Corp. (NASDAQ:NWSA): NWSA shares recently traded at $19.17, down $0.04, or 0.21%. They have traded in a 52-week range of $13.38 to $19.79. Volume today was 15,004,713 shares versus a 3-month average volume of 16,701,900 shares. The company’s trailing P/E is 18.82, while trailing earnings are $1.02 per share.

Viacom Inc. Class A Common Stoc (NYSE:VIA): VIA shares recently traded at $55.26, down $0.16, or 0.29%. They have traded in a 52-week range of $44.10 to $60.90. Volume today was 10,746 shares versus a 3-month average volume of 26,121 shares. The company’s trailing P/E is 18.51, while trailing earnings are $2.99 per share.

Viacom, Inc. (NASDAQ:VIAB): VIAB shares recently traded at $49.22, down $0.16, or 0.32%. They have traded in a 52-week range of $35.13 to $52.67. Volume today was 2,370,390 shares versus a 3-month average volume of 4,424,600 shares. The company’s trailing P/E is 16.48, while trailing earnings are $2.99 per share.

Walt Disney Co. (NYSE:DIS): DIS shares recently traded at $41.45, down $0.08, or 0.19%. They have traded in a 52-week range of $28.19 to $44.34. Volume today was 9,911,750 shares versus a 3-month average volume of 11,846,100 shares. The company’s trailing P/E is 16.45, while trailing earnings are $2.52 per share.

To contact the reporter on this story: Ashley Cloninger at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com