On The Rock
Top Themes of the Week
Happy Sunday!
The top companies, including MSFT, NVDA, AMZN, META, GOOGL, NFLX, and AAPL, retain their prominence, although Meta and Netflix have slipped post-earnings. These 7 companies contributed over 75% of the S&P's year-to-date return.
Within telco/media, linear media and Disney ($DIS) are stagnant. Investors are increasingly eyeing Live Events such as Live Nation (LYV 0.00%↑ ), EDR/WWE, and (MSG MSGE 0.00%↑ / MSGS 0.00%↑).
Live Sports & Sports Betting
The bankrupt Diamond Sports Group has taken legal action against its parent company Sinclair Broadcast Group, alleging fraudulent withdrawal of $1.5 billion from the regional sports business. Diamond Sports claims that Sinclair began diverting assets shortly after acquiring the company in 2019.
Canal+ Group has expanded its sports offering by including DAZN in France and enhancing subscriber packages, while DAZN's acquisition of Ata Football serves to consolidate its women's soccer content.
The impending merger between Endeavor-owned UFC and WWE is nearing completion, leading to the formation of the publicly traded entity TKO Group Holdings. While the merger is generating considerable interest, it also carries uncertainties.
The NBA has unveiled its full schedule, encompassing more than 250 national network games. The season is set to commence on October 25, 2023, with Disney networks taking the lead.
World Athletics has entered into a multi-year global sponsorship agreement with Deloitte, which not only involves sponsorship but also includes management consultancy and digital transformation services, aimed at enhancing the fan experience and leveraging data expertise.
Broadcast & Cable Networks
A report from July 2023 by Nielsen indicates a decline in cable and broadcast usage among US viewers, with cable dropping to 29.6% and broadcast to 20%. However, streaming services have reached a new record high of 38.7% of total TV usage, marking a 25.3% increase compared to the previous year.
20 million+ US households are benefiting from the Affordable Connectivity Program, designed to enhance broadband affordability. The Federal Communications Commission's initiative also offers a $100 discount for the purchase of computers, laptops, or tablets.
Dish is engaged in discussions about the acquisition of a significant portion of 800MHz spectrum from T-Mobile, with undisclosed deal value, aimed at expanding competitive services for both consumers and businesses. Meanwhile, in the second quarter, T-Mobile and Verizon jointly added 893,000 Fixed Wireless Access users, resulting in a total subscriber base of 5.938 million and capturing 5.2% of the US home internet market.
Social/Digital Media
The Biden administration has called on the US Supreme Court to challenge laws from Florida and Texas that seek to limit editorial discretion on social media platforms, citing concerns over First Amendment rights.
In response to perceived security threats, New York City has prohibited TikTok usage on city-owned devices, with a directive to remove the app within 30 days.
Precise TV's research reveals a high viewership of YouTube among teenagers, with 85% (13-15 years) and 78% (16-17 years) reporting recent viewership. YouTube also demonstrates higher ad recall compared to TikTok, broadcast, and mobile gaming apps.
YouTube has announced intentions to eliminate content promoting harmful or ineffective cancer treatments and discouraging professional medical treatment. This effort aims to streamline medical moderation guidelines and combat misinformation.
