Highlight Reel: Netflix’s Ad Sales Struggle Could Be a Win for Sports 📊
Plus, where next for British Basketball? And Bandit Running’s Unsponsored Project...
Welcome to Sports Pundit, the sports business newsletter delivering insights from across the industry.
In today’s email;
Netflix Ad Sales Challenge 📺
Where Next for British Basketball? 🏀
Bandit Running’s Unsponsored Project 👟
Thanks to Ben for coming on the Podcast - and thanks to everyone who has listened and shared feedback!
Happy Friday!
Andy 😊 🙏
P.P.S. Congrats to Ben Mercer, our latest ‘Contributor of the Week,’ an award given out to reward positive contributions to the SP WhatsApp Group.
Other honourable mentions go to Shane, Peter and Ajin.
Not a member yet? Join using the link below 👇
CHANGING CHANNEL
Netflix’s Ad Sales Struggle Could Be a Win for Sports 📊
A recent report from Bloomberg highlights Netflix's position as barely making it into the top 10 in ad sales, lagging behind the likes of Peacock, Hulu, Disney+, and Amazon Prime (and well behind YouTube).
In an effort to change this and boost its overall audience size, Netflix is considering launching free versions of its service in Europe and Asia, targeting those who can't afford the service or lack payment options. Ad executives predict that Netflix will eventually introduce ads to its most popular tiers as well.
In the short term, Netflix aims to expand its advertising inventory, explaining its push into live events and sports. Notably, Netflix will air ads during WWE events and the NFL Christmas Day game, with advertising packages reportedly priced at $5 million.
Andrew Brown (Founder & Principal at 1896 Partners) suggests that this shows the importance of sport to the wider Netflix strategy – something which could have a knock-on effect on media rights and subsequently, valuations:
What he says:
“Despite Ted Sarandos's December 2022 statement about Netflix not seeing a profitable path in live sports, the [Bloomberg] chart [identifying Netflix as barely a top 10 player when it comes to video ad sales] underscores why the company will have an impact on the sports industry moving forward.
Driven by the clear role advertising will have in growing its top-line revenue, Netflix has now turned a corner in its strategy. Recent moves like acquiring broadcast rights to two National Football League (NFL) Christmas Day games highlight that the streamer can increasingly see a path to (strategic) profitability with live sports rights.
This change in approach (when coupled with a growing ad sales business) will have significant downstream implications on media rights revenues that will influence team & league valuations in the future.”
📚 Further Reading:
Not yet a subscriber? Join over 2,500 sports business leaders, from Formula 1 to the Premier League, that read Sports Pundit every week to get impactful industry insights.
HIGHLIGHTS
Juventus and Fanatics have announced one of the most comprehensive and ambitious club deals ever agreed in sports merchandising, covering e-commerce, retail, manufacturing and licensing ⚽️
The R&A and The Gang have introduced "Just Swing," a virtual golf game on Roblox aimed at engaging diverse audiences ⛳️
DAZN has secured a multi-year, non-exclusive global broadcasting partnership with X Games ❌
The latest research from the Women's Sport Trust reveals that fans are watching Barclays Women's Super League matches for longer periods than ever before 🚀
Chelsea co-owner Todd Boehly explores idea of unified college football league involving as many as 85 teams and 12 divisions 🏈
Manchester City and WWE have launched an exclusive merchandise collaboration, blending the world’s of football and wrestling 👕
WORTH A SHOT
Why BBL Should Look Down Under After License Termination Upends League 🏀
Earlier this month the British Basketball Federation (BBF) terminated the licence of Basketball League Ltd (BLL), which runs the men's professional league, due to financial concerns.
The BBF acted after discovering that BLL, which is backed by 777 Partners, had financial difficulties and had entered into creditor arrangements with its largest creditors, rendering it unable to fulfil its duties.
While interim measures for the BBF to organise the 24/25 season are in place, this has left many asking, where does this leave British Basketball?
Christian Daley (Co-Founder and CEO of Asia Star Athletes) has suggested that looking at the National Basketball League (NBL), based in his home country of Australia, could provide some insight on where BBF ought to begin:
What he said:
“Until the business case for owning a team makes sense from a commercial perspective the BBL will continue to struggle. I would be taking a long hard look at how to make basketball as a business work in the UK.
The last season has shown the interest is there, the ability is there, the fandom is there but to continue developing the league there needs to be a solid roadmap showing how this is done.
Teams need to own their own facilities [as] this opens revenue streams so the club can become more financially robust (easier said than done). [Furthermore,] short form content to drive engagement amongst Gen-Z, a la the overtime elite model [is needed].
[The model for a team] joining the BBL should follow an NBL (Australia) model where you have to develop a team from the grassroots up and see that team hit senior age before being allowed to have a pro team, not simply pay to play.
If Australia with its 25ish million population can make it work commercially, then so can the UK. There is no magic money wand to fix this, but there is a pathway forward!”
FURTHER READING
FIFA+ Expansion: A Game-Changer for Sports Streaming By Carlo De Marchis, A guy with a scarf ➕
Ligue 1 highlights football's ticking timebomb that could change everything By Paul Macdonald, Game Within the Game ⚽️
An Ode to Gerd Aigner By Simon Thomas ⚽️
Bandit Running’s Unsponsored Project By David Skilling, Culture of Sport 🏃
Footballco Business Podcast: M&C Saatchi Sport & Entertainment By Footballco and Jenny Mitton 🎙️
New Cultural Codes By Zoe Scaman, Musings Of A Wandering Mind
PODCAST
Want to hear more from my conversation with Ben?
We discuss how London differs from other MLB international markets, tapping into cricket fandom, incorporating education into content, strategy and ambitions across the wider European market, utilising merchandise and popular music, and much, much more.
Listen to the full podcast via the link below - and I’d love to hear what you think! 👇
JOB BOARD
Brand and Partnerships Creative Lead - Chelsea FC (London, UK)
Fan Engagement Executive - Formula 1 (London, UK)
Senior Project Manager, Player Engagement - Major League Baseball (New York, US)
Head of Social Media - WHOOP (Boston, US)
Senior Manager Strategy, New Balance (Boston, US)
To see these jobs, and more jobs like these, visit the Sports Pundit Job Board, hosted by Peak 72.
Plus, Peak72 is also recruiting a Digital & Event Content Lead for a world-leading organisation. More details can be found via the Job Board.
Do you have a job you’d like to promote to the amazing readers of this newsletter? Email me 📩
TALENT TALKS
Getting insights and news via email is great, but there's so much untapped knowledge in our community. We want to open up the floor and hear from everyone.
It’s all part of moving from mass emails to meaningful, one-on-one conversations.
The Highlight Reel is brought to you by the Global Institute of Sport!
The Global Institute of Sport is the leading destination for Master's degrees, executive education and professional qualifications in sport around the world.
They count world-famous stadiums and surrounding venues among their state-of-the-art campus facilities across the globe, including London's Wembley Stadium, Miami's DRV PNK Stadium and Melbourne Cricket Ground.
Ready to master the global sports industry? Enquire today about their in-person and online courses.