On The Rock
Top Themes of the Week
The Unstoppable Rise of an Industry That Rules
In recent years, sports franchises and TV rights have emerged as highly sought-after assets in the entertainment industry. While other media categories have seen declines in engagement, live sports viewership has remained resilient. This trend has been driving up the value of sports franchises, with several record-breaking deals taking place in the past months. Additionally, the sports streaming landscape has seen notable developments, with major players entering the market and teams launching dedicated streaming services.
Sports franchises have experienced a surge in value, as demonstrated by recent record-breaking sales.
The Washington Commanders set a new record by selling the team for a staggering $6.05 billion
Michael Jordan agreed to sell his majority stake in the Charlotte Hornets for a valuation of $3 billion
A Qatari group led by Sheikh Jassim Bin Hamad Al Thani is reportedly close to finalizing a deal to purchase Manchester United for over $5 billion, marking one of the most expensive sports team transactions to date
The sports franchise market shows no signs of slowing down, with six of the seven highest-priced transactions occurring in the past thirteen months.
Sports streaming has also made headlines recently, with significant developments in the industry.
Roku ROKU 0.00%↑, a leading streaming platform, announced its entry into live sports by partnering with CBS Sports to become the exclusive US media partner for the Formula E electric motorsport series. As part of this agreement, Roku will stream eleven races per season for free on the Roku Channel, enhancing the newly launched sports experience.
Another noteworthy streaming update comes from the Chicago Cubs, who plan to launch their dedicated streaming service in July. The service aims to provide access to Cubs games exclusively, catering to fans without traditional pay-TV bundles or access to other streaming services. Marquee Sports Network, a joint venture between the Cubs and Sinclair Broadcast Group, has been diligently working on this streaming service for over a year.
Mobile Gaming Reigns Supreme
Mobile gaming remains the most popular platform for gamers, as revealed by a study conducted by NewZoo. An astonishing 79% of gamers play on their phones, surpassing PC and console gaming, which stand at 43% and 41% respectively. Mobile gaming maintains its popularity even among those who stick to a single platform, with 35% of gamers exclusively playing on their phones.
Capitalizing on this trend, YouTube GOOG 0.00%↑ is reportedly testing a new product called Playables, offering users access to games on mobile devices or desktops. This move by YouTube demonstrates ongoing ambitions within the online gaming space.
In the console gaming space, attention was drawn to the ongoing Microsoft v. FTC case. Microsoft MSFT 0.00%↑ CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick testified in court to address regulators' concerns regarding their proposed merger. Internal emails between Microsoft executives revealed that the company had contemplated acquiring Sega and Bungie to fill gaps in its video game portfolio. Another revelation showed that they prioritized long-term goals in cloud and gaming content over console sales volume during the launch of Xbox Series X/S.
