Erik Reynolds

Here’s a bulleted list of key numbers and data points you should know from the week tied to profitability, losses, subscriber additions, ARPU, cord cutting and free cash flow of OTT platforms, MSOs and vendors: - Paramount ended Q1 with 71.2 million Paramount+ subs, with a DTC loss of $286 million in the quarter (https://lnkd.in/ermGD3QX) - Combined, Verizon, Comcast, Charter and Altice lost 1.33 million pay TV subscribers in Q1  - The courting hearing the Fubo lawsuit against Disney, FOX and WBD has set a hearing date of August 7, 2024 - Peacock ended Q1 with 34 million subs, on a loss of $639 million in the quarter (https://lnkd.in/er9Hqx5d) - Roku ended Q1 with 81.6 million active accounts, with a net loss of $50.9 million in the quarter (https://lnkd.in/egmrDMDD) - As of 5pm EST on April 30th, WBD channels are no longer available on Fubo as the companies could not agree to new content licensing terms (https://lnkd.in/eZxNvYgN) - In Q1, YouTube generated $8.1 billion in ad revenue, up 21% YoY and its highest Q1 total to date (https://lnkd.in/epY5mZSG) - Fastly’s stock closed the week down almost 35% after the company lowered full year guidance during Q1 earnings and had a Q1 net loss of $43.4M (https://lnkd.in/e5rDmaKG) - For the first time since 2019, Crunchyroll is increasing the pricing on their Mega Fan and Ultimate Fan subscription tiers in select countries by $2 a month - The growth rate of Amazon’s AWS business is now on a $100 billion annual revenue run rate - Just before the Paris Olympics, NBCUniversal will raise the price of Peacock by $2 per month for new subscribers. - Fubo ended Q1 with 1.5 million subs in the US, on losses of $56.6 million in the quarter (https://lnkd.in/e945g4sQ) - Bally Sports channels are no longer available via Comcast after Comcast and Bally's bankrupt operator, Diamond Sports Group, failed to agree on a new contract - Canada-based Netskrt raised about $7.2 million ($10 million CAD) in its series A round, to help deliver video to remote and rural communities

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What are FAST channels? FAST stands for free ad-supported streaming TV. This is streaming TV – without a paid subscription. Unlike the subscription model, FAST channels offer no-cost streaming for viewers by programmatically inserting ads into a would-be ad break. Essentially, FAST channels translate the concept of traditional linear TV channels (like cable or satellite) to connected TVs (CTVs), mobile, tablets, and other internet-enabled devices. FAST channels primarily offer programming in the live, linear TV format, but some providers also offer ad-supported video on demand (AVOD, more on that soon). Examples of FAST channel platforms Viewers have no shortage of options when it comes to FAST channels. Popular examples include: Freevee, Pluto TV, Tubi, IMDb TV, The Roku Channel, Fubo, Philo, Plex, Crackle, Vudu, and Distro.tv. BFR coming soon to fill the slot for content created for the African diaspora , Indian and Latin audiences.

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As 404 Media reports based on documents leaked to its reporters, the TV and radio news giant Cox Media Group (CMG) claims that its so-called "Active Listening" software uses artificial intelligence (AI) to "capture real-time intent data by listening to our conversations." "Advertisers can pair this voice-data with behavioral data to target in-market consumers," the deck continues. #privacy #security #surveillance #tech #communication

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“Three US lawmakers have expressed concern over Spotify‘s recent bundling practices and its potential impact on songwriter compensation. Spotify announced in March that it would reclassify its Premium tiers as ‘bundles’ by combining music and audiobooks. In 2022, a legal agreement (Phonorecords IV) allowed music streaming services in the US to pay lower royalties to publishers and songwriters for music offered as part of bundles compared to standalone music subscriptions. In a letter addressed to Shira Perlmutter, the US Register of Copyrights, Congressmen Ted Lieu (D) and Adam Schiff (D), plus Senator Marsha Blackburn (R), raised questions about whether Spotify’s new practice is in line with the spirit of the Music Modernization Act (MMA) of 2018. “American songwriters create the music we love but have long labored under a compulsory licensing system that robs them of control over their work and the ability to receive fair compensation. Six years ago, Congress passed the Music Modernization Act (MMA) to address that problem,” they wrote in the letter dated June 12. The bipartisan group of lawmakers highlighted the long-standing challenges faced by songwriters in receiving fair compensation under the compulsory licensing system, acknowledging that the MMA is a positive step towards fairer compensation for publishers and songwriters, while expressing concern that Spotify’s actions might undermine these efforts. Their concern lies in Spotify’s “unexpected decision” to reclassify its Premium subscription tier as a bundle when offering audiobooks as a free add-on to its $10.99 monthly subscription plan.” Read the full article for more: #Spotify #Streaming #Songwriters #MusicPublishing #StreamingRoyalties #Royalties #MusicTracks #MusicStreams #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #USA #USCongress #CRB

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As streamers begin to sell bundles packaging multiple services together, the landscape is beginning to look a lot like cable again.    "Why is Hollywood (and Silicon Valley) going bundle-crazy anyway? Despite their flaws (like a discounted pie being divvied up two or three ways), bundles are the best method this side of consistently great content to reduce churn — or a subscriber canceling their membership. Netflix has the industry’s best churn rate, which makes it a very attractive service to bundle with."   https://lnkd.in/gayZ_rDZ

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Iger says it’s their “biggest foray ever” into gaming and now Disney is going to allow developers "the opportunity to create their own wholly unique Disney-themed gaming experiences" (see pocketgamer article in comments) Why is this significant? Well, the House of Mouse is the undoubted master of IP building and crucially of CONTROLLING how they’re managed. And whilst in these days of UGC platforms it’s not unusual for IP to be ‘borrowed’ by creators, this marks an acknowledgment by Disney that by ceding *some* control (amount tbc) it puts their characters and worlds into the hands of many more users and creators than ever before. It sounds risky handing over your IP right? Especially when you can’t fully dictate how it will be used? (Again, the extent to which Disney will hand over the reigns with their IP is to be revealed) but this marks an acknowledgement of the user-centric era that you may have heard me and others talk about. Joe Condon explains it eloquently in his excellent newsletter - also linked in comments. Disney opening up use of their IP is powerful because it unlocks: 💰‘Hands Off’ Marketing & Revenue Generation - in a simplified way, the beauty of UGC is that once all the assets have been created and the IP integrated into the platform, the power can be with the creators to do a lot of the heavy lifting in marketing the IP and building the experiences that can eventually drive revenue for your brand. It’s a win-win. Low-lift, large reach, and quick feedback on what’s resonating, and what’s not. 💭Insight into Crossovers & The Big Screen Implications - Disney has such diverse IP that it attracts audiences from Gen A to Baby Boomers. With Fortnite about to play home to a concoction of these IP, it’ll provide invaluable (and real-time) feedback on which of their IPs are resonating the most with Fortnite’s audience, and what crossovers are most popular. You’d imagine this insight will be helping to advise decisions at Disney around which of their IPs are worth funding for future films and crossovers on the big screen so they get the most bang for their buck.

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A kinda funny article as their stock price is always being manipulated and meaningless especially that if you look at their major shareholders it is obvious that Universal. the biggest record company in the world., intends to go private in 2026 with Bill Akeman, Tencent, Vivendi, Vincent Bolore and a future shareholder, I will not name, have planned to go private along. Remember that under their new structure 50% of earnings must be distributed annually via dividends hence why they partner with companies like Reservoir to purchase assets [which they double dip on by holding the distribution rights.] Bill and Vincent are brilliant billionaires and once Grainge retires the 'new partner' will make an offer to all other shareholders so don't be surprised to see the stock keep going down so UMG can do more stock buybacks diluting 'the sheep'. PS - They know a lot about Superfans and how to exploit such plus if you look closely their merch business has increased by close to 40% PS 2 - They are also diversifying into the ,ive business like Sony. The latter is buying live venues every month across the world.

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Check out my latest article in TheWrap, highlighting the most anticipated TV shows of October! Leading the new releases is CBS’s reboot of Matlock, while the hit procedural Tracker tops the list of returning series. Dive into the full details here below...#StreamingAnalytics #EntertainmentIndustry #WhipMedia

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An excellent article from Bill Rosenblatt about the current state of licensing in AI. Making a case for engagement by content owners, the article notes that "courts and Congress will consider how easy it is for the AI companies to license content properly in determining whether licensing is required." The article provides a fairly comprehensive overview of licensing activity to date and offers some great context, including drawing a compelling analogy about the emergence of photocopiers in the 1970s. The article also provides a nice mention of my favorite start-up, Calliope Networks. News/Media Alliance, Dataset Providers Alliance, Alex Bestall, James Golden, Max Einhorn, Ali Hekmatpour, Carlos Sanchez, Jim Tosney, Mark Milstein, Mark Turner, Uday Ghare, Andrew Steinberg, Copyright Clearance Center (CCC), Tracey Armstrong, Copyright Alliance, The Copyright Society, Daniel Cooper, Keith Kupferschmid, The Authors Guild, Thad McIlroy, Ed Newton-Rex, Fairly Trained, Mary Rasenberger, Theresa Weisenberger, Peter Csathy, Chad Rutkowski, Han Seng Lim, Mike Heath, Radhika K Raman, Michael Huntsman, Milady Flores https://lnkd.in/gHeK3-_x

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As Productions Move Abroad, California Gears Up to Battle Film and TV Exodus – The Gloves Are Coming Off! California’s film and TV production game might be down, but it’s far from out! As productions flirt with international locations, the Golden State is ready to throw some heavyweight punches to keep the magic of Hollywood alive. With a powerful combination of tax credits, infrastructure investment, and a homegrown talent pool that’s second to none, California is suiting up to go toe-to-toe with global competitors. Sure, cheaper locations and irresistible international incentives have been stealing the spotlight. But here’s the plot twist: California isn’t just sitting on the sidelines. We’re rolling up our sleeves, ready to “rumble”. The goal? To remind the world that Hollywood is still the undisputed champion of content creation—no matter how far production tries to wander. The future of film in California? Bright, bold, and absolutely worth watching. https://lnkd.in/grDAwWZ3 Entertainment Partners California Film Commission FilmLA Motion Picture Association

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DURING THE FALL This past week: - We found out that Streaming hit its highest share of TV viewing ever. - We learned that YouTube surpassed The Walt Disney Company as the most watched single distributor - on the TV. - And we heard from Sony’s CEO that in the next two years the Media industry is in for “chaos - mergers and bankruptcies and sales and all kinds of fun things.” “The business will be in a period of chaos for the next 18 to 24 months. Just look at all the companies with cable networks that have this albatross of cable networks around their necks that they have to figure out what to do with.” https://lnkd.in/eGmhjXya The most surprising part of all this? That the collective braintrust of the Media ecosystem acted as if all of this was somehow surprising. “Vinciquerra is certainly not the first media executive to predict more consolidation in Hollywood, but he may be the only one using the most-damning language.” - IndieWire Really IndieWire? I have been ringing the alarm bell with much stronger language FOR YEARS. I have written the phase “Media Apocalypse” more times than anyone can count. I have been urging Disney to do big things like buy Roblox. I have been calling for David Zaslav to be fired for malpractice. I have been beseeching the C-Suites, boards, and shareholders of Big Media to look beyond the models of the past, look towards Big Tech lifestyle bundles as the the future, to collaborate with their data in order to better compete with the Trillion Dollar Death Stars, to empower younger product and project managers to make the transformations they need, and to (finally) put their consumers at the center of everything they do. While some of you reading this may have listened, few (if any) in Hollywood have. To be fair, it’s hard to hear the strategic advice of an outsider when your conference rooms are packed full of Ivy League fraternity brothers harrumphing their sycophancy in your ears. And boy are those free sushi lunches on the 52nd floor hella distracting! Now, as a consequence of years of corporately delinquent negligence and continual narcissistic anal gazing, Paramount is being sold for parts, Warner Bros. Discovery has lost 71% of its value, Disney (after an historically disastrous and permanently damaging non-succession) is AGAIN looking for a successor, Fox Corporation is reenacting (verbatim) the last season of Succession, and Netflix is playing a shell game with their failing ad business. So what’s a Media business to do now? More importantly, what the fuck happens NEXT? As we embark on the fall and begin the end of 2024, here (at the link) are my TOP SIX PREDICTIONS for THE NEXT 24 MONTHS... https://lnkd.in/ea8FHD33 Have a safe fall! 💀

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The Fox Corporation has always been a very intriguing topic of conversation for me in entertainment because of the press and the stigmatism around the company. In an article written by Alex Weprin, The Hollywood Reporter goes into explaining the revenue boost that the Fox Corporation has experienced this election cycle due to the paid political advertisements on their national and local networks. According to Weprin, “Fox reported revenues of $3.56 billion, up 11 percent from a year earlier, including advertising revenues of more than $1.3 billion, also up 11 percent.”  This is promising news for Fox, and the rest of the linear television companies, because political ads have proven to provide a valuable source of revenue, offsetting the industry-wide shift to streaming platforms. While the streaming epidemic is still upon us, political ads have provided linear television companies with a temporary but reliable revenue source this election cycle. The election cycle keeps linear television alive and relevant, but it also distinguishes the priority of cable news networks to cover current events such as elections or breaking news over streaming platforms which rely more on libraries and intellectual property (IP) from the parent companies that operate them. Another factor that could point to the revenue generated for Fox Corp. during this year's election cycle is the brand and political ideology the company has crafted for itself. Since the inception of Fox News, the network has always been a one-stop-shop for conservative news drawing in large numbers of viewers who are dedicated to the GOP. This aspect, coupled with a candidate such as Mr. Donald Trump, and a politically divided nation, draws in even more viewers to their broadcast throughout the months leading up to the election and weeks after.  Overall. I believe that this is a big win for linear television because of the neglect that it has received from the lack of faith that media conglomerates have in their networks and the push to move to digital. This article provides a temporary solution for the problems facing the linear television business providing a significant revenue boost to company bottom lines while also showing the importance of linear television during political campaigns and election cycles. I am interested to see if other nationwide events have the same effect that this election cycle has had on the traditional television model.  Esquire Group Inc. https://lnkd.in/eWp4EPQG

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The UPROXX newco is a smart media M&A rollup. Music and culture focus + a strong leadership team. I'm bullish on them doing well by *brands and fans*, and getting immediate revenue traction based on their WMG YouTube media sales partnership. In my newsletter tomorrow, I explain my insights on the deal, key questions I'm asking, why I think UPROXX STUDIOS is setup for success. For now, let's review the key deal details... UPROXX STUDIOS OVERVIEW • A new “brand solutions studio” that “connects brands with talent, cultural arenas, and audiences”  • Founded by media veterans Jarret Myer (CEO), Rich Antoniello (Exec Chairman), and will.i.am (Chief Visionary Officer) • Result of acquisitions of Uproxx, HipHopDX, Dime Magazine, and other Warner Music Group media assets • Reaches 170M+ monthly US visitors and generates 12B+ monthly US video views POST DEAL OPS • “Expect significant investments in our brands, team, and the experiences we offer” • Includes the excl license to represent WMG’s YouTube inventory for all US media sales  • Will integrate will.i.am’s FYI AI tech and FYI radio into ops UPROXX DIVISIONS • Uproxx – Millennial-focused culture media brand and production co (acquired by WMG in 2018) • HipHopDX – Digital mag of hip hop music criticism and news (acquired by WMG in 2020) • Dime Magazine – Digital mag of American basketball lifestyle (acquired by Uproxx in 2015) • FYI – productivity tool designed to serve Creatives. Combines messaging and collab tools with file mgmt and content pub features NEWCO VALUE PROP  • Access to A-list stars via WMG YouTube inventory + UPROXX superfan communities gives brands and advertisers new ways to participate in music culture • FYI AI tech will enable creation of AI StoryLabs, a new branded content and social media mgmt unit within UPROXX Studios  • "Merging the agility and freedom of an independent entity with the reach and resources of a major music label.” UPROXX HISTORY • f/k/a as Uproxx • Founded 2008 by Jarrett Meyer and Brian Bater (also co-founded Rawkus Records in 1996) • Acquired by male-focused media ad network Woven Digital in 2015 • Rebranded to Uproxx Media, Jarrett became GM • Bought by WMG in 2018 • Price undisclosed, but previous Uproxx Media investment was ~$43M • Value prop of acquisition was to “create engaging new experiences for young consumers, global promotional possibilities for brands, and innovative marketing opportunities for artists” • WMG exec Max Lousada and Uproxx co-founder Jarrett Myer used to work together at Rawkus Records WMG RELATED HISTORY • Announced 600 layoffs in Feb 2024, incl potential sale of Uproxx and HipHopDX • Also wound down its podcasting brand Interval Presents and social media publisher IMGN • Overall faced challenges in its O&O and digital brand sales biz -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

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