Activist investor buys stake in Disney and pushes for changes
With a demand for significant changes, such as spinning off ESPN, incorporating Hulu into Disney+, changing the board, and reducing expenses, the New York-based hedge fund Third Point has acquired a stake in Disney.
In a letter to Disney CEO Bob Chapek, Third Point’s CEO Dan Loeb commended the Mouse House boss on “a tremendous quarter” and in particular on “the strength in DTC subscriber growth” during a time when Disney surpassed Netflix as the largest streaming firm in the globe.
The inclusion of streaming service Hulu “directly into the Disney+ DTC platform,” as demanded by the activist investor, would, in Loeb’s words, “deliver considerable cost and revenue synergies.” Loeb claimed that Disney and ESPN would be better off splitting ways despite the free cash flow the sports broadcaster and streamer generates for Disney and the latter’s goal of integrating Disney+ and ESPN in a single product.
According to him, the two may enter into a contract that would allow them to maintain their strong bond for the benefit of both parties. Loeb urged Disney, whose costs he said “are among the highest in the industry,” to implement cost-cutting measures in order to increase margins and get rid of “excess underperforming assets” in addition to merging Hulu and spinning off ESPN.
According to reports, Third Point has basically replicated a $1 billion position it had in Disney two years prior. Click here to read more.
55% of consumers use at least one FAST service
Six out of ten US households now have access to free, ad-supported streaming TV channels as consumers see the benefit in getting a similar TV experience without having to pay for pay TV or subscription video on demand services. Hub’s report shows a 10% increase in consumers using free, ad-supported streaming TV (FAST) channels like Paramount’s Pluto TV. Currently, 55% of consumers report that they get at least some of their video content this way. Comcast discovers that FAST penetration has increased by more than twice as much year over year.
Unsurprisingly, FAST advertising is suggested as a complement to regular TV and streaming advertising in the article “Free Ad-Supported Streaming TV: Why More Advertisers (and Consumers) Are Going F.A.S.T.” It advises that 20–30% of the total budget for multi-screen campaigns should go toward streaming advertising (including FAST and other types like AVOD that offer non-linear content).
In a setting that resembles linear TV and is frequently integrated directly into a TV manufacturer’s interface, FAST providers like Tubi and Pluto are providing news, entertainment, sports, and more to users (including smart TVs from Samsung, LG, TCL, Roku, Sony). These services are also made available on popular OTT devices (such as Apple TV, Amazon Fire, Roku, Tivo, and others), as well as MVPDs like Xfinity.
FAST channels are becoming more popular not because there aren’t any free or even “free” options available to consumers with their basic internet subscription. Customers may find the kind of nicely split topic content on FAST channels, eliminating the need to fiddle with a queue. There is a threshold for ad load and the length of commercial breaks, Hub discovered, even though viewers are paying more attention to commercials on some platforms. Click here to read more.
Sinclair says its streaming sports service, Bally Sports+, will arrive next month
Bally Sports+, a Sinclair direct-to-consumer streaming service, had a soft launch earlier this summer in five areas. Today, the business revealed that the streamer would go live across all 19 Bally Sports regional sports network brands on September 26. (RSNs). This brings to a close Sinclair’s three-year project to launch its own over-the-top service.
Bally Sports Arizona, Bally Sports Great Lakes, Bally Sports Indiana, Bally Sports New Orleans, Bally Sports Ohio, Bally Sports Oklahoma, Bally Sports San Diego, Bally Sports SoCal, Bally Sports Midwest, Bally Sports North, Bally Sports South, Bally Sports Southeast, Bally Sports Southwest, and Bally Sports West will all launch Bally Sports+ at the same time.
Sports enthusiasts can subscribe to the new service for $19.99 per month or $189.99 per year to have access to RSNs. These RSNs were formerly only accessible through DirecTV Stream for $89.99. The agreement between Sinclair and the linear TV provider expires in 2023. . A seven-day free trial is also available to subscribers from Sinclair.
The business also mentioned that new pricing alternatives would be revealed on September 26 but made no mention of what they may entail. Android TV, TvOS, iOS, and BallySports.com all offer access to Bally Sports+. Two of the most well-liked streaming devices, Roku and Amazon Fire TV, do not yet offer the service. Click here to read more.
Half of Innovid's Ad Impressions were CTV During Second Quarter
Innovid reported that during the second quarter, linked TV programming accounted for the greatest share ever of the video ad impressions served through its platform. According to Innovid, CTV impression volume increased by 23% during the quarter.
According to Zvika Netter, co-founder and CEO of Innovid, “Innovid was formed on the concept that one day, the majority of TV content will be distributed through streaming channels.” “As shown with our CTV volume growth, that projection is coming to life,” the company stated. “It’s driven by the continued shift of TV viewership to ad-supported CTV, which is the cornerstone of our business, as well as toward CTV.”
Consumers’ migration to streaming from traditional TV and the tendency of streaming viewers switching from expensive subscription video services to less expensive ad-supported options have both contributed to the expansion of CTV. The Walt Disney Company said this week that the ad-supported version of Disney Plus would debut on December 8.
Innovid reported that CTV provided 47% of overall revenue in the second quarter, excluding revenue from TVSquared, which Innovid bought in March, and that CTV represented for 50% of all video impression volume served by Innovid in the second quarter, up from 46% in Q2 of 2021.
Mobile video impressions delivered by Innovid climbed by 11% year over year and made up 38% of the total volume of video impressions, while desktop video impressions fell by 3% and made up 12% of the total volume of video impressions. Click here to read more.
Vidaa, Amagi team up for FAST channel distribution
Vidaa is ramping up its free ad-supported streaming TV (FAST) rollout, partnering with Amagi to deliver FAST channels to customers in the Americas, Australia, and the United Kingdom. Amagi will also provide Vidaa with its cloud streaming and monetization technologies through their new relationship, enabling Vidaa to more effectively distribute and monetize its current FAST channels.
Amagi has made its technological solutions available to a number of distributors. It offers both proprietary ad insertion tools and a supply of connected TV ad inventory to Crackle Plus. And earlier this year, Cox Media Group hired Amagi to boost its linked TV strategy for digital streaming.
Together, Vidaa and Amagi have collaborated on projects like the “America the Beautiful” pop-up channel. In January 2022, Vidaa made its debut in the FAST market by launching channels in the United States and Mexico. Each month, the world watches more than 1.13 billion hours of video on smart TVs, claims Vidaa.
These products include Amagi Thunderstorm, a platform for dynamic ad insertion, and its Cloudport cloud playout service. The FAST channel lineup from Amagi boasts access to more than 500 content brands across a range of genres. According to the company, Amagi’s technology enables FAST platforms to quickly develop their own owned and operated channels and broaden their worldwide reach.
These collaborations reflect the growing consumer and advertiser interest in connected TV advertisements. The majority of consumers respond more favorably to CTV advertisements than to those on traditional linear TV, according to a June survey by LG Ads and DeepIntent. Click here to read more.
