Fran Hazeldine

“Spotify is increasing its prices for the second time in less than a year. Investors have welcomed the move, reckoning that it won’t negatively impact on total user numbers and will help Spotify in its ongoing bid to become a profitable business.” “Many in the music industry have long argued that streaming subscriptions are under-priced. So, Spotify instigating a second round of price increases in under a year would likely be widely welcomed, if it wasn't for the streaming service’s sneaky bundling tricks causing a new controversy….” Read on - #Spotify #DSPs #Streaming #Songwriters #StreamingRoyalties #Royalties #MusicTracks #MusicStreams #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz

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Netflix's Next Frontier: In-House Ad Tech! 🚀 In their Q2 2024 earnings report, again Netflix shared an exciting development that might fly under the radar for many: the building and soon launch of their own in-house ad tech platform. While everyone discusses their commentary around hit shows like "Bridgerton" or "Queen of Tears", or analyzes their revenue growth of 17%, I'm intrigued by their strategic move into developing advertising technology, which they previously announced, yet was underreported, during the Upfronts this past spring. Why is this a big deal? 1. Enhanced User Experience By building their own platform, Netflix can better integrate ads without disrupting the viewer experience. Historically, this helped Hulu gain an early lead in streaming ad revenue. One would imagine Netflix, with its resources, would take the ability to better integrate ads into the viewing experience to the next level. 2. Increased Ownership of a Growing Revenue Stream As the ad tier membership grew 34% QoQ, ad revenue looks to unlock significant revenue potential for Netflix. The best way to take advantage of a growing segment is to fully own it. By having their in-house ad tech, they no longer have to pay (as much) rent to the Googles and Trade Desks, among others, of the world. In the long run, this can have a tremendous effect on Netflix's operating margins. 3. Precision Targeting & The Money That Comes With It In-house ad tech allows for better data collection and analysis, leading to more precise ad targeting. This means advertisers can reach their desired audience more effectively, which can command higher ad rates. For example, Roku's OneView ad platform leverages first-party data for targeting, contributing significantly to Roku's ad revenue, which saw a 71% YoY increase in Q1 2024. Plus, Netflix has the opportunity (although I'm not sure they'll take it) to not be such a walled garden, and really pull in the data they need from other parties to know more about the purchasing intent of their users. As someone who—maybe somewhat begrudgingly—spent a lot of time working on the ad side of the media business, it's a move like this that showcases Netflix's forward-thinking approach. While their ad subscribers certainly aren't where they want them to be size-wise yet, they're clearly planning for the long term instead of (further) making hasty decisions to satisfy Wall Street. #Netflix #Streaming #AdTech #Innovation #MediaBusiness #DigitalTransformation

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Just in time for the #WorldSeries-- Roblox users can now show off their team spirit on their avatars. Official Major League Baseball (MLB) team jerseys from all 30 teams are now available for purchase in our marketplace! Sports fandom lives on Roblox and wearing your team’s apparel is a key form of self-expression for fans. According to #GWI insights: ⚾ Half of Roblox users play sports video games with low duplication with some of the most popular titles. ⚾ Roblox users are 40% more likely than the average sports fan to have bought an official jersey in the last 6 months Thank you to Jamie Leece, Jason Schreiber, Paul Crockett at #MLB for bringing their teams to Roblox. Happy that now all fans can support their teams from the stands, their couch and the virtual world! #futureofsports #sportsmarketing #worldseries2024 #majorleaguebaseball #yankees #dodgers #immersivemarketing #genzmarketing #genz #fandomforthefuture

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What's The Score? Yesterday, I announced my new collab with Comscore, Inc. called THE SCORE: The FIRST EVER monthly report that measures ad exposure on TV, rather than pure viewing time. https://lnkd.in/e92u8RY3 Why? Because, let's be honest, what's the point of general viewership data that doesn't measure what's actually monetizable? The chart I dropped yesterday bucks the conventional Media hive mind, showing that 85%+ share of ads viewed on the TV are actually on Pay TV/Broadcast, while just 15% are on Streaming. THIS chart ⬇ shows what happens when you look at "share of ad voice," and go beyond JUST the top 15 channels. Here are some of my biggest ah-ha's... 👟 In 2Q of 2024, the Broadcast networks accounted for more than 40% of all TV ad exposure, with the Big Four leading the pack. 👟 However, Hulu & YouTube are hot on FOX TV's heels, while FOX News still remains a Pay TV powerhouse. 👟 Despite all the buzz around premium SVODs and their shiny ad tiers, outside of Hulu, NONE of the other premium players generate a significant share of TV's ad views, yet. 👟 When added ALL TOGETHER, Netflix (#24), Peacock (#31), Paramount+ (#33), Amazon Prime (#35), Disney+ (#56), HBO Max (#86) / Discovery+ (#133), and AMC+ (#163) - represent just 3.2% of ad exposure on TV; less than Fox News, Hulu or YouTube BY THEMSELVES. 👟 The data proves that cable TV ain't dead yet - with each of MSNBC, CNN, TNT, and HGTV, INDIVIDUALLY, garnering more ad exposure in 2Q than Prime, Netflix & Disney+, COMBINED. For my deeper analysis on Comscore, Inc.'s data, more info about THE SCORE, and the meaning behind the 👟s, hit the link: https://lnkd.in/eS5hGTQ7 The mission of this new collab is to give YOU - Media mavens, agencies, and brands an accurate & USEFUL understanding of CTV audiences, by introducing a new way of measuring them. Total viewing #measurement without proper context does not help the ad buyers FOR WHOM TELEVISION MEASUREMENT IS ACTUALLY INTENDED, nor the larger Media community who NEED to monetize TV viewing now, more than ever. The full report will drop just in time for #AWNY. In the meantime, any/all feedback is welcome - lmk what you think! #measurement #CTV #advertising

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IFYKYK Part 4. The latest from the MAGNA 2024 US Ad Markets Summer Update. On a national basis, the Spectrum TV app is at the same tier as Amazon Prime Video and Hulu. Yes, I said national. Once again….This is how we harness chaos for brands and agencies. And it’s why we are far and away the #1 multiscreen video provider in our markets. Spectrum Reach #builtforwhatsnowandwhatsnext

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We do talk a lot about Roblox as a model of platform mixing #social, #gaming, #creatoreconomy. One of the best example of a #metaverse. This article from Matthew Ball is complete and a deep-dive into the business model of this phenomenon. Really insightful - from R&D to accounting to engagement to revenue potential. https://lnkd.in/emmYmGyh

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Hot Take: The Sports Streaming Era has arrived and Roku's Single-App Mode is a Disaster for Sports Fans 🚨 This past weekend, I was juggling the Yankees game on MAX, the Rangers on ESPN+, and Georgia football on Fubo – a true sports fan's dream, right? Wrong. Roku's single-app limitation turned my viewing experience into a nightmare. Picture this: the Yankees just finished an inning, and I want to quickly check the action in the Rangers game. Simple enough, right? Not for Roku users. Because Roku OS can only have one app open at a time, I had to completely exit the MAX app, relaunch ESPN+, and wait through a painfully slow selection & loading process, complete with forced ads. By the time I finally got to the Rangers game, I'd probably missed a crucial play in baseball! 😡 This clunky app-switching process might be okay for binge watching full episodes but it is an unacceptable user experience for the live sports fan, who just wants to use the old "clicker" to go between channels quickly. And here's the kicker: it's not an issue on other smart TV platforms. My LG TV (which my Roku is plugged into!) handles multi-app viewing seamlessly. I've seen it work on Apple TV. Roku! Fix this outdated app experience or risk losing sports fans. #sportsstreaming #roku #uxfail #streamingwars #cordcutting #programmatic #TV #linear

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WATCH NOW ☕ Perception Box: Corner Office - Episode 2 💼 🌟 The Next Chapter in the Short Form Series Co-Produced with The The Wall Street Journal and Unlikely Collaborators 🌟 🔥 In this episode, sit down with another trailblazing leader, Bob Stiller, to explore what lies beyond the titles, achievements, and success. 💭 What happens when you challenge the stories you tell yourself? ✨ This series dives deep into the Perception Box, unearthing insights that redefine leadership and personal growth. 👇 Watch now and share: What’s a story you’ve had to reexamine and rewrite about yourself? 💬 #Leadership 💡 #SelfDiscovery 🔍 #PerceptionBox 🧠 #WSJSeries 🎥

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I imagine those working in Production and Product Placement see this announcement by Prime Video & Amazon MGM Studios as more of a “what took you so long”? There are many ways Prime Video & Amazon MGM Studios Netflix Hulu The Walt Disney Company Paramount+ and the other studio based streamers can gain significant additional revenue by working with brands, other than go backwards to the traditional model of ‘adverts’, which we all know is off putting for a huge amount of consumers. - Product Placement. - Brand sponsored original content. - Brand supported events. - Brand associated Film & TV genres. The above is not just ‘ad sales’, it requires an understanding of content Production, consumer and brand behaviours, brand awareness, script reading, integration and storytelling to seamlessly integrate branding into content without the consumer feeling like it is being forced on them. Business Insider #streaming #avod #vod #productplacement #brands #brandmarketing MGM #adsales https://lnkd.in/erSzphSt

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Last week saw 2 BIG influencer mktg M&A deals. Publicis Groupe bought Influential, and Stagwell bought LEADERS. Today I write about the Influential deal. I est the forward revenue multiple at around 2.5x. Let's break it down... ---SELLER: Influential--- • IM platform for marketers and influencers • Founded 2013 by Ryan Detert, Piotr Tomasik 🌊, Daniel Steele • 300 employees • 3.5M influencer network • Access to 90% of influencers w/ 1M+ followers • AI-powered platform w/ 100B+ datapoints  • 300+ brand clients incl Disney, Hilton, Hulu, McDonalds ---FINANCIALS & CAP TABLE: Influential--- • $150M revenue in 2023 • 50% YoY revenue growth • $51.5M capital raised between 2014 to 2021 • Investors incl Paradigm Agency, Plug And Play, Ruttenberg, Capital Zed, Tech Coast Angels, WME, ECA Ventures, Regal Funds, ---BUYER: Publicis--- • Diversified agency holding company (#1 by net bookings) • Founded 1926 • Based in Paris • In 100+ countries • 103,000 employees • €13.1B 2023 net revenue ---FINANCIALS (in €): Publicis--- Stock performance as of 7.29 at 940am ET… • Share price: €97.72  • Mkt cap: €24.9B • Up 15.6% YTD • Up 33.1% YoY 1H 2024 YoY results per public filings (PE 6.30.24)... • Net revenue up 5.9% to €6.7B, from €6.3B • Operating margin up 6.1% to €1.2B, from €1.1B • EBITDA up 4.9% to $1.4B, from $1.3B  • €744M in free cash flow, up 2.6% YoY • €3.1B in cash • €3.2B in total debt (incl earnout/buyout) ---DEAL DETAILS--- • $500M purchase price • Expected to close Aug 2024 • 3.3x 2023 LTM revenue multiple ($500M / $150M) • If assume 2024 revenue growth slows to 30% from 50%, implies $200M forward revenue and a 2.5x revenue multiple  • Deal structure undisclosed (likely an earnout) ---DEAL VALUE PROP--- Overall, expand Publicis IM client services… • More creators to target any audience demo, niche • Better creator-client matching, campaign design via Influential AI + Publicis data businesses, Epsilon • Offer holistic digital campaigns that blend IM w/ digital, affiliate channels • Better ROI analysis of IM campaigns for brands, will drive more spend • Retain client media spend as moves away from linear TV and into social / streaming / other digital —IM MARKET NOTES— • $7B in 2023, up 17.4% from 2022 • Up more than 10.6% for all digital ad spend • Est to be $8.1B in 2024 and $9.3B in 2025 • Social spend to be $186B by 2025, exceeding linear TV spend – IM is fastest growing segment ---POST DEAL OPS--- • Influential will operate standalone • CEO Ryan Detert will stay on ---WHAT ELSE I FIND INTERESTING--- Following WPP's acquisition of Goat in 2023, and Stagwell buying LEADERS last week, I expect big agency IM M&A to continue ramping...though few scaled companies remain! I'll write more in my Friday newsletter. -- 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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Spotify's Q2 earnings are the talk of the media world today. With gross profit up 29.2% YoY, 7 million subscribers added, and continued ad-supported revenue growth, it's no wonder the stock is up ≈13% as of writing this (and the highest since early '21). Most importantly, we now see a right-sized company that has figured out a way towards sustained profitability, which didn't look so obvious a few quarters ago. They were able to increase subscription fees, add subscribers, and continue to lean into revenue opportunities that offset music licensing fees, such as podcasts and audiobooks. Podcasts: Now, the bummer is that we didn't learn much about the podcast side of the business, except that ad revenue continues to grow. However, they continue to see podcasting as a great source of profitability (only a bummer because I want to see exactly how well it's doing, but great for the industry). Licensing of Pods: We also learned that licensing of content & wide distribution is paying off, which obviously provided more impressions and ad revenue for Q2. As you may remember, we predicted major platforms would lean into licensing content in early January. The funny thing is that this is the prediction that got the most pushback! A handful of astute investors and industry people told me I was wrong, Spotify was pulling back, yada yada yada. As the great Swedish rock band The Hives sang, "I hate to say I told you so," but as an industry, we need to scream our wins as loud as possible. (Of course, I had to nod to a Swedish band. Also, they are amazing live). https://lnkd.in/eQbw3NDc Video: Spotify now has over 250,000 video podcasts; over 170 million have watched a podcast on the platform. So, uh, let's watch this space. And stop asking if every podcast needs video. The answer is very clear.. Yes, you need a video strategy. Audiobooks: I remain highly bullish on Spotify's opportunity with Audiobooks. They are the clear favorite to be the first Audio Super App, which would allow them to charge a bit more while offering the full digital audio experience to users—capitalizing on the growing movement of broadcast radio listeners and book readers to digital audio. Audible is more vulnerable than I think they realize. All said it was a great quarter for Spotify... and the entire audio industry. I'll be back next week when SiriusXM announces its earnings. https://lnkd.in/efHFZide -- I'm the founder of DWNLOAD Media, a fund that invests in the audio space. If you'd like to learn why now is the time to invest in podcasting, DM me! I'll also recap all of the Q2 earnings via email. Sign up: https://lnkd.in/eysH5x5C Read the Q1 Recap: https://lnkd.in/etkGMXa7 Read the 2024 Outlook: https://lnkd.in/eW9nPCZQ #Spotify #SPOT #audio #podcasting #podcasts #music #audiobooks #investing

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Is Paramount's Tech Transformation Just a Pipe Dream? In the ever-evolving landscape of media, David Ellison’s announcement about transforming Paramount into a tech powerhouse stirred quite the conversation. Including by me: https://lnkd.in/eBsi2xbi But as we dive deeper, several challenges emerge, casting shadows of doubt over this ambitious pivot. #1. Financial Feasibility With Paramount grappling with substantial debt and pressing financial obligations, notably hefty NFL payments, the costs of attracting top tech talent become a significant concern. Can Paramount realistically afford this tech overhaul amidst economic uncertainties and a struggling stock? The talent war isn't won on ambitions alone, especially when competitors like Google offer more stable havens. #2. Creator vs. Coder Paramount’s tech ambition, while necessary, seems at odds with maintaining the creator-friendly environment Ellison dually promised. In an era when interest rates have climbed, balancing tech innovation with creative freedom is a tightrope walk. Remember, even Netflix, once a haven for creators with its blank checks during #ZIRP, is tightening its purse strings. How can Paramount navigate these waters without the cushion of a tech giant's capital or rising stock prices? 3. Building vs. Buying Tech Infrastructure David Ellison’s plan for Paramount involves a substantial commitment to developing in-house tech capabilities, focusing on cloud services, AI, user interfaces, recommendation algorithms, and ad-serving technologies. This approach aims to differentiate Paramount from competitors and enhance user experience. However, the tech sector’s history suggests leveraging established third-party platforms could be more cost-effective and reliable. Giants like Disney have successfully integrated platforms like BamTech, while HBO initially utilized external technology before transitioning. AMC Networks similarly relies on Brightcove for streaming technologies. The pivotal question for Ellison is whether the potential benefits of custom-built solutions justify the investment and risk, especially when patching together proven third-party solutions might yield quicker and more economical results. #InEssence... These challenges are monumental, yet not insurmountable. As we watch Paramount’s narrative unfold, one thing is clear: transitioning into a tech entity is more than just a strategic pivot—it’s a gamble on the future of entertainment itself. Thoughts? #Paramount #StreamingWars #MediaTech

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Dude Perfect raised $100M for global biz expansion. The deal is getting lots of buzz, but our team’s math signals challenges ahead. Let’s break it down… DEAL DETAILS • $100 - 300M growth capital investment • Led by Highmount Capital • Unclear if 100% invested upfront OR draw down of commitment over time • No previous capital raised USE OF FUNDS • Hire mgmt team to expand biz • More live experiences incl int’l tour, consumer products • Grow content formats, frequency, channels, global localization e.g. animation, TV, movies, streaming • Extend brand beyond 5 founders by building talent network • New HQ in Frisco, TX as prod facility and “family-friendly entertainment destination”: – Retail store, podcasts / gaming / fan UGC spaces, trick shot tower, DP museum, mini golf, restaurants – Original plans for 3-story, 30 acre facility est to cost $100M+, 2 yrs to build COMPANY OVERVIEW: Dude Perfect • Digital-native comedy and sports media brand • Faith-based mission: “We’re about giving back, spreading joy and glorifying Jesus Christ”  • Other YouTube franchises: “Stereotypes,” “Overtime”, “Bucket List”  • Media brand also incl books, mobile games, board games and toys, and merch / retail / food and beverage partnerships • 25 current team members PERFORMANCE HIGHLIGHTS • 60M YouTube Followers, 17B views • Est 2024 revenue: $50M per DP • Est 2023 and 2022 revenue: $25M and $20M per WSJ  • Consumer product partnerships incl Nerf toy line, Columbia Sportswear • Partnered with A Parent Media co to launch a streaming service • ESPN “30 for 30” doc premiering at Dallas Int’l film festival • TV series on CMT in 2016, later aired on Nickelodeon • Alternate broadcasts for Amazon’s Thursday Night Football • 4 live nationwide tours as of 2023 ORIGIN STORY • Founded 2009 by 5 friends at Texas A&M • Cofounders = twins Coby Cotton and Cory Cotton, Tyler Toney, Cody Jones, Garrett Hilbert • Started as YT channel featuring trick shot videos INVESTOR OVERVIEW: Highmount Capital • Growth stage and middle mkt PE fund for tech, media, healthcare • Founded in 2023 by jason illian and David Hawkins • 4 team members on website + advisor • 3 team members have faith-based ties per bios • No other investments listed on website other than DP My takeaway... I really like and support the trend of increased investment into YouTubers and digital-native media brands. But as I wrote about in my 2024 State of Creator x Media capital markets reports (will link them below), investment must match market and opportunity size. To ensure good ROI, and to set good precedent for future investment into our space. The DP bet is exciting, but could be overly optimistic based on our prelim math. My colleague Michael Booth's post breaks the math down (link below). More analysis to come in my Friday newsletter. —- I’m the founder of RockWater Industries. We do m&a and strategy advisory for media, agencies, and creator economy. My dm’s are open. #media #agency #creatoreconomy

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Today is my first day at Roblox! I assumed the role of Chief Marketing Officer and will also take on global expansion efforts as the Head of Market Expansion. There are amazing teams in place for both areas and I’m excited to see where I can infuse my experience with theirs. It was hard to leave my old job but easy to accept my new one. Roblox is just scratching the surface of its opportunity on its own platform and in connecting to people around the world. It was also clear that there is a wonderful culture of long view strategic investment and a pragmatic approach to working together internally. I think that fits my personal philosophy well and how I like to build teams. On the marketing side, Roblox is THE place where generations growing up in the digital world meet daily to enjoy millions of immersive experiences together. For brands, Roblox is in an amazing position to partner in unique ways that haven’t been explored before. I see a vibrant and engaged community that is growing and a platform that is constantly exploring new ways to create joy and fun. As a marketer, this is an amazing place to storytell and connect all kinds of content to a huge and growing community. I can only imagine what content we’ll bring to the platform as we grow around the world. Which brings me to the other part of my job….. I couldn’t be more excited about the growth potential in international markets where Roblox is just scratching the surface of its opportunity. I know that local creators, local partners, and local marketing produce incredible stories from around the world. The entire platform benefits. I can’t wait to see what Roblox unlocks as we expand. I’ll be back on the road reconnecting with old colleagues and teammates around the world. Hopefully I’ll see many of you soon!

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