Welcome to the latest installment of Dan Rayburn's Streaming Insights & Intelligence, a weekly insights column on StreamTV Insider where the industry analyst puts facts and figures to the news you need to know about. Join the discussion on LinkedIn and check back each week as he unpacks key industry happenings.
For the week of September 4, 2024, Rayburn is tracking key news updates from Gotham Sports, Amazon’s Freevee, Disney and India’s Reliance Industries and more.
Evolution of FAST channels: For the past few years, Free Ad-supported Streaming TV (FAST) streaming services have been one of the most talked about and contested topics in the streaming media market, as everyone following the sector knows. Many people have differing views about the success of these offers, from definition to growth, and there are plenty of high-level statistics published regarding the popularity of FAST services. But popularity and profitability are not the same, and there are almost no business measures available in the sector to gauge FAST's success. Read my post about "How FAST channels are evolving to promote SVOD and live linear streaming services,” here.
Gotham Sports App: This is too expensive—a new combined sports package from MSG Networks and YES Network (Gotham Sports App), which includes the Knicks, Nets, Rangers, Islanders, Devils, Sabres, and Yankees, will cost $41.99 a month or $359.99 for the year. I don't see fans paying this month, especially when it doesn't include games from the Mets, Jets and Giants. Subscribers to pay TV providers will receive The Gotham Sports App at no additional cost.
Goodbye Freevee? Amazon has started branding all Freevee channels as Prime Video Channels on Fire TV devices. All 500+ channels have been rolled into the Prime Video grouping. This rebranding from Freevee to Prime Video Channels in the Fire TV channel guide could be the beginning of the end for Freevee as a standalone service.
Apple sports stats: Apple announced that its free iPhone app, Apple Sports, now gives sports fans new access to real-time scores and stats for the NFL and college football seasons. New updates for NFL and college football games include enhancements to play-by-play, offering quick access to scoring drives presented alongside the view of every gameplay, and a new dynamic drive tracker that lets fans visualize where the ball is on the field at any time.
ESPN keeps tennis: ESPN and the US Tennis Association (USTA) have extended their relationship with a new, 12-year agreement that will keep the event with ESPN through 2037. Currently airing this year's US Open, ESPN will air the tournament in the US, Latin America, and the Caribbean under a new agreement starting in 2026. The deal also allows ESPN to offer more US Open programming through streaming.
Disney, Reliance get greenlight: The Indian competition commission has approved the $8.5 billion merger between Disney and Reliance Industries, paving the path for creating the largest media firm in the country. To appease the Competition Commission of India (CCI), the two businesses made concessions, such as selling seven or eight of their non-sports TV channels and promising not to arbitrarily hike ad pricing for streamed cricket events. The combined content collection of the two firms will be nearly twice as large as that of Netflix and Amazon Prime Video combined in India, with 120 TV channels and two streaming platforms. The closure is anticipated in six months, pending Indian businesses tribunal clearance.
Netflix numbers: Netflix’s stock price hit a high of $707.53 on Tuesday, August 27th, its highest level in three years. Netflix closed the day with a market cap of $298.5 billion, larger than Disney, Roku, Paramount, and Warner Bros. Discovery combined. Netflix's positive cash flow, exceptional balance sheet, manageable debt load and laser focus give it a huge advantage over other companies offering DTC streaming services. And yet, some in the industry continue to bash Netflix's ad strategy, insisting they are too late to the game or are struggling to grow their ad tier. These people never include Netflix's financials in their posts but rather tie their emotions to the discussion or their opinions on specific Netflix content they don't personally like. Balance sheets don't lie. Stick to the numbers!
Clearhaven Partners on Executive Podcast: Thanks to Michelle Noon, founder and managing partner of private equity firm Clearhaven Partners, for joining me on my Executive Podcast Series for a detailed conversation on the current state of the financing market tied to valuations, interest rates, and balance sheets. Michelle discusses how operators and investors balance growth versus profitability, the importance of recurring revenue with high predictability, the true cost of debt and how the market is now rewarding companies for generating cash flow. Michelle discusses how management teams are now being forced to focus on managing their capital structures at the potential expense of business operations and how this can impact focus and business results. Finally, Michelle lays out a perspective on valuation multiples based on various business factors, touches on how she sees the investments in AI playing out and explains why Clearhaven invested in SundaySky, Wowza and recently acquired Zixi. Check out the full podcast here.
Dan Rayburn is an analyst in the streaming media industry, with regular TV appearances on CNBC, Bloomberg TV, and Schwab Network amongst others. He is conference Chairman for the NAB Show Streaming Summit in Las Vegas each year, and his streamingmediablog.com website is one of the most widely read sites for broadcasters, content owners, OTT providers, Wall Street money managers, and industry executives. He also has a podcast at danrayburnpodcast.com. He can be reached at [email protected]
Dan Rayburn’s Streaming Insights & Intelligence is an opinion column. It does not necessarily represent the opinions of StreamTV Insider.