Is Direct-To-Consumer Media the Future of Digital Sport Content Delivery
Today, consumers have a multitude of ways to access content (i.e. sports, TV shows, sports etc.)… and now there are many more ways to get that content to viewers than through the traditional cable & broadcast service providers. A recent report predicted that direct-to-consumer (DTC) services will transform the way sports, media, and other rights owners appeal to their fans. That Deltatre report, revealed that sports operators worldwide are now spending 15% of their total budgets on OTT, meaning that by 2021 more than $6.8 billion will be invested in the OTT tech stack in North America alone. OTT stands for over-the-top, initially named in reference to devices that go “over” a cable box to give the user access to TV content. In OTT channels, content is delivered via an internet connection rather than through a traditional cable/broadcast provider. OTT and video are intertwined, but they are not the same thing. OTT is just a different channel through which video content (and related display or video advertisements) is delivered to end users. Active companies in the markets this week include B2Digital Incorporated (OTCPK:BTDG), The Walt Disney Company (NYSE: DIS), ViacomCBS Inc. (NASDAQ: VIAC), Netflix, Inc. (NASDAQ: NFLX), DraftKings (NASDAQ: DKNG)
Pixalate defined it this way: “OTT may be defined differently by the various partners involved in the delivery, advertising, and measurement streams. OTT, as defined by OTT content providers (e.g., Hulu, SlingTV, etc.), may include any users accessing OTT content via any device (desktop, mobile phone/tablet, OTT devices, etc.). However, OTT may also be defined strictly on the basis of the device used to access the content. Examples of OTT devices include Apple TV, Chromecast, Amazon Fire, Roku in addition to Smart TVs (Connected TVs) and gaming platforms (i.e., PlayStation, Xbox, etc.). How advertising inventory is measured/categorized depends on the partners involved in the respective OTT supply chain.”
B2Digital Incorporated (OTCPK:BTDG) BREAKING NEWS: B2Digital Signs Deal to Deliver Live MMA Action to Apple TV, Amazon Fire Stick, and Android Applications in $6.8 Billion Dollar OTT Sports Market – B2Digital Incorporated (the “Company” or “B2Digital”), the premier development league for mixed martial arts (“MMA”), is excited to announce that the Company has signed a development agreement with PRESTOSPORTS, LLC (“PrestoSports”), a leader in digital sports entertainment distribution, to develop the Company’s new B2 Fighting Series App for Over-The-Top (“OTT”) distribution through Apple TV, Amazon Fire Stick, and the Android platform.
The Company expects the B2 Fighting Series App to launch this fall allowing much of its already scheduled LIVE MMA Event Fall Season to air over the three biggest OTT platforms in the world.
“B2 is extremely excited to jump into the explosive OTT TV business over the coming months,” commented Greg P. Bell, Chairman & CEO of B2Digital. “Our B2 Fighting Series App for Apple TV, Amazon Fire Stick, and the Android platforms will put B2 Digital in a unique position at the forefront of the emerging multifaceted media distribution paradigm, offering one of the most exciting forms of content and establishing ourselves as leaders in both the live sports and content distribution markets.”
The North American OTT sports content delivery industry will hit $6.8 billion by 2021, according to a recent report by sector specialists, Deltatre. The Company’s in-house research agrees with this outlook. Management believes that traditional marketing and distribution in the live sports space is evolving at a rapid rate, helped along by the COVID-19 global health crisis and its behavioral implications.
The Company chose to work with PrestoSports as the software development lead because they know the live sports content distribution market better than other capable firms. They also have extremely high brand recognition as a developer and provider in the live sports industry, which will minimize unforeseen obstacles and potentially open new doors to further expanding the Company’s OTT footprint.
Bell added, “People have stopped going to venues en masse, preferring to gather instead in small groups to watch LIVE sports with friends and family in the living room. B2 is uniquely positioned to control both production and distribution of our proprietary LIVE MMA Fighting Events through PPV or Subscription models. Because of the years we have already spent building our network of talented and engaged up-and-coming fighters and our own Production Company to produce the content effectively we have a unique content value proposition. Now we are moving into a phase where we will have direct access to an effectively boundless global audience in search of compelling live sports.” For more information about B2Digital, visit the Company’s website at www.b2digitalotc.com.
Other recent developments in the markets this week include:
The Walt Disney Company (NYSE: DIS) recently reported earnings for its third fiscal quarter ended June 27, 2020. Diluted earnings per share (EPS) from continuing operations for the quarter was a loss of $2.61 compared to income of $0.79 in the prior-year quarter. Excluding certain items affecting comparability, diluted EPS for the quarter decreased 94% to $0.08 from $1.34 in the prior-year quarter. EPS from continuing operations for the nine months ended June 27, 2020 was a loss of $1.17 compared to income of $5.97 in the prior-year period. Excluding certain items affecting comparability, EPS for the nine months decreased 53% to $2.22 from $4.74 in the prior-year period. Results in the quarter and nine months ended June 27, 2020 were adversely impacted by the novel coronavirus (COVID-19). The most significant impact was at the Parks, Experiences and Products segment as most of our theme parks and resorts were closed for the entire quarter and our cruise ship sailings were suspended.
“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions — a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”
ViacomCBS Inc. (NASDAQ: VIAC) recently announced the planned launch of ViacomCBS EyeQ, a new and expansive connected video advertising platform that will serve as a single transactional point of entry for digital video content from ViacomCBS’ leading portfolio of broadcast, entertainment, news and sports networks, with enhanced capabilities to deliver incremental reach across one of the largest premium video audiences in the U.S.
ViacomCBS EyeQ will bring together all of ViacomCBS’ connected video assets — including BET, CBS Television Network, CBS All Access, CBSN, CBS Sports HQ, Comedy Central, MTV, Nickelodeon, Paramount Network, Pluto TV and VH1 — allowing advertisers to access a viewing audience that measures 50 million full-episode monthly unique viewers in the U.S., and 150 million across all content and all devices.
Netflix, Inc. (NASDAQ: NFLX) has released its second-quarter 2020 financial results by posting them to its website. Please visit the Netflix investor relations website to view the Q2’20 financial results and letter to shareholders.
The company also released a video interview with Netflix co-CEO Reed Hastings, Chief Financial Officer Spence Neumann, co-CEO & Chief Content Officer Ted Sarandos, COO & Chief Product Officer Greg Peters and VP, IR & Corporate Development Spencer Wang.
Netflix is the world’s leading streaming entertainment service with 183 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
DraftKings (Nasdaq: DKNG) recently welcomed Michael Jordan as a special advisor to the company’s board of directors. The NBA Hall of Fame inductee, six-time NBA Finals MVP and Chairman of Hornets Sports & Entertainment has agreed to take an equity interest in DraftKings in exchange for providing guidance and strategic advice to the board of directors on key business initiatives undertaken by the sports technology and entertainment company that went public earlier this year.
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur,” said Jason Robins, DraftKings co-founder and CEO. “The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”