The Co-Dependent Marriage Of TV and Sports

According to a report released this week by PriceWaterhouseCooper, the revenue earned from media rights by the North American sports industry will surpass the revenue earned at the gate by 2018, when they’ll reach $19.95 billion and $19.72 billion, respectively, fulfilling the old adage that the sports business is really the TV business.

Increasingly, the reverse is also true: The TV business is really the sports business.

More than a third of all TV advertising in the U.S. today goes to live sports, and that doesn’t include ESPN, which shows a mix of live sports and sports-related programming. Add in ESPN and the share of advertising going to sport programming would top 40 percent, Advancit Capital partner and former Fox Digital president Jonathan Miller estimated from the stage at the New York Media Festival earlier this month. Franklin_Gutierrez_hitting_HRAt the same time, according to SNL Kagan, sports networks account for nearly 20 percent of the carriage fees paid by cable and satellite operators, and that doesn’t count the portion of the carriage and retransmission fees paid to broadcasters and general-interest cable networks that can be attributed to the sports programming they carry. According to an analysis last year by MoffettNathanson analyst Michael Nathanson, the aggregate of sports rights account for as much as 50 percent of the cost of the average cable bill. Read More »

For Amazon, Live OTT Comes With A Twitch

At his Streaming Media blog, Frost & Sullivan analyst Dan Rayburn adds a new wrinkle to the ongoing debate over why Amazon kicked Apple TV and Chromecast products out of its online store. According to Rayburn’s sources, Amazon has been chatting up content owners about offering a live, over-the-top video service of some kind.

Rayburn speculates that such a plan could help explain why Amazon recently acquired the cloud-based live streaming platform provider Elemental Technologies at an unusually high valuation:

cable_TV_not1Insiders say Elemental is on a run rate to do close to $100M in 2016. So if the rumors of Amazon valuing Elemental at $500M are correct, Elemental is getting about 5x projected 2016 revenue, a rather high valuation, unless Amazon is also placing value on them for other reasons, like the ability to power their own live OTT service.

I’ll add another data point in support of the notion: Twitch, which Amazon acquired last year for close to $1 billion. As noted in a post here last week, Twitch is rolling out a new set of tools to help its broadcasters linear-ize their channels, by mixing live and on-demand content and creating playlists that turn the channel into a 24/7 experience. Read More »

The First, Rough Hashtag of History

Social media networks are in a rush to get into the events business. Breaking news events, that is. The latest to take the plunge is Instagram, which announced a pair of updates Tuesday designed to make it easier for users to follow events as they unfold in real time through images uploaded to the platform.

Periscope_screenshotThe first update is an overhaul of Facebook-owned site’s Explore tab to allow users to pull of images taken at a specific place or under a particular hashtag. The other is a powerful new search function that lets users search by hashtag or location.

“If you’re a journalist and you want to see live photos happening at any location in our system, you can simply type in the location and up comes the page,” Instagram CEO and cofounder Kevin Systrom told the Wall Street Journal.

The Instagram moves come on the heels of Twitter’s unveiling of Project Lightning, a new feature also designed to make it easier for users to follow breaking news events as they unfold. A new Project Lightning button in the Twitter app will call up eight to 12 human-curated feeds, with an emphasis on images and videos, each focused on a particular breaking event. It also follows the launch of YouTube Newswire, a new service from the Google-owned video site that will provide news organizations with curated feeds of verified videos taken by eyewitnesses to breaking news events.

And, though all of those new services and features must have been in the works for months given the amount of coding and testing they would have required, they all follow the appearance earlier this year of Periscope and Meerkat, which put a spotlight on the growing importance of live and real-time content on the web. Read More »