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👀 Stay tuned: Our new, upcoming series we'll dive into the world of sports, its ever-evolving relationship with media & entertainment, and the business and numbers behind it. Keep an eye out for that!
In the meantime, I'll be experimenting with a new/short weekly format where we'll highlight some of the latest industry headlines and news. Top 3. Short, sweet, and to the point. Welcome to our inaugural "Curtain Call"! 🎬
ICYMI 📢
Audio/Music/Podcast 🎤
Consortium made of Believe Founder and CEO, Denis Ladegaillerie, EQT, and TCV to take the company private in a deal valued at $1.6bn. The group has agreements to buy ~72% of Believe’s shares and has obtained offers from investors holding another 3% at the offer price, it said in the statement. The deal follows a 36% decline in its shares after its 2021 initial public offering. (Yahoo Finance)
Sony Music Group has closed an agreement to buy half of Michael Jackson‘s publishing and recorded masters catalog in a deal that sources say valued those music assets somewhere >$1.2bn. Other sources have suggested it might be as much as $1.5bn. At those valuations, Sony will pay >$600m for its stake of the music legend's rights. Sony’s deal with the Michael Jackson estate does not include royalties from the Broadway play and other theatrical productions featuring Jackson’s music. (Billboard)
New Mountain Capital completes its acquisition of BMI. NMC has sealed its acquisition of BMI, a top music rights giant. The approved deal includes a $100m boost for BMI's talent and a minority stake for Google's CapitalG, hinting at new monetization strategies. New Mountain aims to enhance BMI's tech and global footprint, while CapitalG will explore fresh revenue avenues for music rights. (Music Business Worldwide)
Film/TV 📽️
Paramount Global laid off hundreds of employees, just one day after the Co announced CBS had record Super Bowl viewership. CEO, Bob Bakish, announced in an internal memo to employees that Paramount will lay off about 800 people, ~3% of its workforce, according to a person familiar with the matter. (CNBC)
Redbird IMI finalized a $1.45bn deal to acquire All3Media. The deal gives control over a big production business across scripted and unscripted series as well as theatrical movie titles. Earlier this year, Redbird acquired a stake in Media Res, the studio behind the Apple TV+ shows The Morning Show and Pachinko, among other projects. (The Hollywood Reporter)
In a letter to shareholders, Disney said it is better off “with Bob Iger at the helm” and without board representatives from activist firms like Nelson Peltz‘s Trian Fund Management.“Disney’s board has the range of talent, skill sets, experiences, delivering ambitious growth plans requires leadership with a deep understanding of the Co’s current strengths and assets,” the letter said. backgrounds that are particularly relevant to the Co’s business and strategic objectives.” (Deadline)
Gaming 🎮
Disney to take minority stake in Epic Games. Disney is investing $1.5bn to acquire a minority stake in Epic Games, the creator of Fortnite. This strategic investment marks a significant move by Disney into the gaming industry, leveraging Epic Games' expertise and the popularity of Fortnite to create an expansive new games and entertainment universe. This collab also aims to integrate Disney's vast array of stories and characters, from franchises such as Marvel, Star Wars, and Pixar, into a dynamic new platform powered by Epic's Unreal Engine. The venture underscores Disney's strategy to expand its digital footprint and engaging audiences in new, interactive ways. (The Hollywood Reporter)
Sony cut its sales forecast for its flagship PlayStation 5 console, after warning of weaker transactions in its key gaming division. The company said it now expects to sell 21m units of the PS5 in the fiscal year ending March, down from a previous forecast of 25m units. The cut in outlook comes after Sony posted record quarterly revenues in the December, holiday season quarter. (CNBC)
Microsoft’s Xbox Game Pass service now has 34m subscribers. Up +36% from the 25m Microsoft previously reported >2yrs. ago. Microsoft revealed the new 34m figure in an official Xbox podcast today, as part of an announcement that some Xbox exclusives are coming to the PS5 and Nintendo Switch. (The Verge)
Blackstone has dropped out of the bidding for a controversial soccer media rights deal in Germany, following a backlash from followers essential of overseas capital. Blackstone’s departure leaves CVC Capital Partners, which has a stake in the media pursuits of the French and Spanish top soccer leagues, as the only remaining bidder. (Business Khabar)
NASCAR launches its new season with rivals attempting to dethrone Team Penske after 2 years atop the Cup Series while an off-track battle over revenue sharing threatens to overshadow the competition. Teams reported to Daytona International Speedway this weekend for Sunday’s season-opening Daytona 500 without a new agreement that has been a sore spot for months. (AP News)
A new sports streaming bundle from ESPN, Fox and Warner Bros. Discovery is unlikely to cause Congress or the FCC to act independently, but the responses of those "hurt" by the agreement "may ultimately lead to a government reaction," New Street Research analyst Blair Levin said. Levin in skeptical that the new JV will be blocked on antitrust grounds. (Benton Foundation)
Social Media 🤖
YouTube is introducing the ability for users to incorporate or “remix” a music video in their short-form videos, called Shorts, as the co continues to challenge TikTok. Given that YouTube has something that TikTok doesn’t, which is a vast library of official music videos, it makes sense for the platform to leverage it to advance its short-form video ambitions. (TechCrunch)
Meta said it will label content generated by artificial intelligence. This can cull misinformation but could also encourage AI content creators to adjust their tactics to fly under the radar. Meta plans to learn more about AI content creation and how it’s shared to further evolve its AI identification tools. (Cord Cutters News)
Meta said that it will start charging a 30% fee when advertisers pay to boost the visibility of their posts in Facebook’s and Instagram’s iOS apps. The change, which will go into effect in Feb. 2024, stems from a 2022 App Store update where Apple extended its typical 30% cut of digital purchases to boosted posts. (The Verge)
Streaming 📺
WWE inks deal with X to stream ‘speed’ matches. WWE is teaming up with X (previously Twitter) to launch "WWE Speed," a series featuring quick, under-five-minute matches airing weekly from spring 2024. This new, fast-paced format aims to deliver intense wrestling action to fans, leveraging X's platform for a fresh viewing experience. This partnership signifies WWE's innovative approach to expanding its digital presence and audience engagement through concise, engaging content. (The Hollywood Reporter)
Plex launches movie rental marketplace. Plex has launched a movie rental service, offering titles from major studios like WB, Paramount, and MGM, with rentals starting at $3.99. This expansion comes after a $40m fundraising effort, aiming to diversify Plex's income. Initially for U.S. customers, the service provides a 30-day window to start watching a movie, with 48hrs. to finish once started. The service will be available on multiple platforms, including smart TVs, game consoles, and mobile devices, enhancing Plex's position as a comprehensive streaming platform. (TechCrunch)
Amazon is facing a lawsuit accusing it of misleading Prime subscribers by charging them an additional fee to stream movies and TV shows without ads. A proposed class action lawsuit, filed in California federal court, claims breach of contract and violations of state consumer protection laws on behalf of users who saw the terms of their subscriptions with Amazon change when it pivoted to making its ad tier the default for its over 100mm subscribers. (The Hollywood Reporter)
That's a wrap! Let me know what you think of this latest format and/or if you have any suggestions of things that would be interesting to see/add.
📩 In The Meantime…
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