Facebook Inc’s $600 million losing bid to buy the streaming rights to a hugely popular cricket tournament in India shows the social network is willing to spend big bucks for high-profile sporting events to keep users engaged on its platform.
And they aren’t the only ones.
Amazon stole the rights to stream the NFL in the US from twitters periscope for a rumored $50 million and sinking many more millions into other streaming rights for sports.
“We are continually looking for ways to deliver our games to fans wherever they watch, whether on television or on digital platforms, and we are thrilled to bring ‘Thursday Night Football’ to Amazon,” said Brian Rolapp, the NFL’s chief media and business officer.
Disney, according to one analyst, estimates that the company will be sinking $US570 million over the next two years – just to get their new services running.
Meanwhile Twitter and Snapchat parent Snap Inc are trying to score the online rights to video highlights from Fox for next year’s soccer World Cup, Bloomberg reported in July.
But its not just sport that are benefiting.
Goldman Sachs predicts that global revenues from paid music streaming will hit $28bn by 2030 – up 16% on its previous forecasts.
Goldman analysts including Lisa Yang suggest that the likes of Sony Music and Universal Music Group will typically “receive 55%-60% of royalties for every piece of content that is being monetized” in the future.
This will put Universal Music value at 22bn in less than 9months.
With the music companies this is ironic as the current streaming status means revenues will jump by more than 500% which should make up for the losses they said they had made due to the internet.
Infact Bon Jovi once accused Steve Jobs for killing the music industry “I hate to sound like an old man now, but I am, and you mark my words, in a generation from now people are going to say: ‘What happened?’ Steve Jobs is personally responsible for killing the music business.” said the music artist in 2011.
While the industry itself tried to take down Spotify “I equate ‘free’ with the decline of the music business,” said Sony Music CEO Doug Morris in 2015.
While Universal Music CEO Lucian Grainge said “Ad-funded on-demand is not going to sustain the entire ecosystem of the creators as well as the investors.” as Spotify stood by their model of free and providing an ad-free paid subscription.
Although as personal assistants such as Google Home and Amazon’s Alexa become prominent in people’s homes the attractiveness of having paid music subscriptions increases.
In the meantime Im going to just leave this here..