NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) were slightly higher in mid-afternoon trading on Tuesday, as the e-commerce giant is said to be in talks with the NBA, NFL and MLB about buying the rights to stream live sports events on its website.
Amazon.com is so keen on winning those rights because it will help them gain more customers willing to pay the $99-per-year fee to be an Amazon Prime member, with access to perks like sports content, Hana Road Capital LLC owner Wally Walker said on CNBC's "Power Lunch" on Tuesday afternoon.
"Sports is still very critical to attracting and keeping customers," he said.
While the sports leagues probably love the "loyalty" and "dollars" from their current network partners, they also realize that "you can't have too many high quality, wealthy distribution companies that want your content," Walker noted. "That amps the competition and that's what you love."
While NFL ratings have gone down and Disney's (DIS) ESPN channel is losing subscribers, Walker doesn't think Amazon.com is too late to the game. "There will always be a market for live sports."
If the company had made a move sooner, then it probably could have had access to the events for a better price, he added. "But if Amazon wants it now and is willing to pay, they can get it in."
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