No doubt by now you’ve read all about AT&T’s plan to acquire Time Warner for approximately $85 billion - it was hard to miss the wall-to-wall press coverage over the weekend. As has been observed by a number of others, this deal is mostly about diversification, specifically AT&T’s desire to add another large revenue stream that offsets its declining wireless business.
Looked at through this lens, the deal represents a kind of “two plus two equals four” motivation; Time Warner brings a totally different set of revenues to AT&T, which makes the company less reliant on its sagging wireless business. If Time Warner can continue to perform at the same level as part of AT&T as it would have on its own, then AT&T wins because it achieved its diversification goal. The key of course is that AT&T didn’t overpay, in turn generating a suboptimal ROI. I’ll leave it to the Wall Street analysts to determine if the deal’s price is appropriate relative to Time Warner’s financial forecast.
Where the deal gets off track to me is the high falutin statements found in the companies’ press release that promise all kinds of benefits that are no more likely to happen as a result of Time Warner being owned by AT&T, and arguably, could actually be LESS likely to happen as a result of the deal. This is the risk that two plus two may actually LESS than four. This is the all too common outcome of many corporate mergers (with the infamous AOL-Time Warner one right at the top of the list).
I'm pleased to present the 344th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week was busier than usual in the video industry and on today’s podcast, Colin and I discuss a number of news items that hit our radar. First we talk about the new Google-CBS deal for the upcoming Unplugged skinny bundle. Next up is VUDU’s Movies on Us, new free, ad-supported VOD service which we both think has potential. We then dig into Facebook’s new feature for advance scheduling and promoting live broadcasts. Finally we review LeEco’s new content and TVs (Colin attended the company’s big launch event this week.)
Clearly there was a lot happening this week as major players in the video industry continue jockeying for position. One news item that broke after we recorded is the rumor about AT&T acquiring Time Warner. That type of deal would be straight out of the Comcast-NBCU playbook and could trigger even more distribution-content tie-ups.
Listen in to learn more!
Click here to listen to the podcast (26 minutes, 17 seconds)
As readers of VideoNuze know, live sports is the last bastion of hope for TV execs that want to retain their legendary grip on Madison Avenue. So it’s no surprise The Wall Street Journal catalyzed media insider rumblings with its October 6th piece entitled “Ratings Fumble for NFL Surprises Networks, Advertisers: So far this season, viewership on major networks is down about 10% from last season.” Writers have followed-up with speculation about why the NFL is experiencing the decline.
Is it the content? Perhaps Presidential politics are blame; maybe it’s the “Kaepernick effect”; or, it could be an unlucky streak of boring games.
Is it the disruption of TV ongoing? Perhaps younger viewers are catching the highlights and recaps they need on Social Media. Or young adults might be watching online; or doing something else entirely.
When it comes to questions about the future of Sports Television, Social Media has important things to say. New research from Ring Digital llc gives us insight into the challenges and opportunities facing Sports TV as Social Media consumption grows.
Here are some fascinating findings along with the Thuuz Sports perspective on one possibility that no one’s talking about.
Each week brings more innovation, product announcements and new business models to the ever-changing video industry. This week was certainly no different, and news from 3 companies - Google (a deal with CBS for its Unplugged skinny bundle), VUDU (a new ad-supported on-demand movie offering) and LeEco (a range of new products from the Chinese giant, including TVs and content) - caught my attention. Each has the potential to cause further industry disruption, or amount to nothing. Below I share thoughts on each.