Sunday Updates: The Hidden Streaming Companies (Issue #8)
Update To The Jungle:
In an effort to niche down the Streaming Jungle even further we will now be focusing on “Alternative Streaming Companies.” These are companies that are connected to streaming but aren’t the mainstream players. Not the Disney, Netflix, Warner Brothers Discovery, type of companies. Instead, I will be focusing on the companies inside the “Alternative Streaming Index” or the “Streaming Jungle Newsletter 10 (SJN 10).” (A list created by this newsletter there is no official organization behind it) Listed below are the companies as of now that I am including in the index.
The same posting schedule will be upheld, Sunday Updates every week with new information and recent insights, and a bi-weekly deep dive or long-form post on Wednesday. As I am building this newsletter I am always looking to improve so please comment any suggestions below and like the post you find interesting so I do more like them. This will be the last post focusing on mainstream streaming companies. Now back to the regularly scheduled newsletter.
Recent Updates:
Alphabet Inc (NASDAQ: GOOGL — $1.46 Trillion) Often overlooked — especially as a streaming company — Google is one of the best set up streaming companies. Google is connected to streaming in a number of ways. The first and most directly is through YouTube and YouTubeTV, two different services with different strategies for streaming. In addition, Chrome can run virtually any streaming service making Google a kind of bundler. Finally, streaming music is a form of streaming often separated from the rest of streaming. Google owns YouTube Music, music streaming in general possesses many similarities to video content (movies, TV, sports, etc) streaming.
Even within YouTube, there are 3 main strategies happening. First, there is the very well-known ad-supported free video streaming portion. Next there is YouTube Premium which is the same content (and some movies) with no ads and instead a subscription. Finally there is YouTubeTV Live which maximizes the high ARPUs connected to live event viewing subscriptions (Hulu has a similar separate live event service).
It is undeniable that YouTube has a lot of users (2.6 billion) and more importantly it receives a lot of views (over a billion every day) from those users. YouTube has a lot power, it is the second-largest search engine in the world after Google, but what return does YouTube make on all this engagement. YouTube ad revenue was ~$6.8 billion in Q1 2022 which makes it ~10% of all of Google’s revenue. Outside of Search YouTube is one of the biggest revenue streams for Google.
Walt Disney Co (NYSE: DIS — $171.62 billion) won the auction for Indian Premier League Cricket broadcast rights for the next 5 years. They paid $3.02 billion for the rights. Since 2017, HotStar, now owned by Disney, held the broadcast and streaming rights which they purchased then for ~$2.5 billion (for both broadcast and streaming rights).
Paramount Global (NASDAQ: PARA — $16.59 billion) In the same auction for Indian Premier League Cricket rights combined with Mukesh Ambani’s TV18 (the combined force called Viacom18) purchased the streaming rights for $2.6 billion. It is also said that Viacom18 will be paying $493 billion in other licenses.
Content News:
Netflix is making a reality TV show of Squid Games with contestants going through challenges and the winner gets $4.56 million
Paramount’s Top Gun: Maverick is now the highest-grossing film this year
Disney’s Lightyear will not play in most of the Middle East, Malaysia, and Indonesia because the film contains some LGBTQ+ content (which is illegal in those countries). Unrelated the film has received many negative reviews from critics
Apple will pay $250M annually for the exclusive rights MLS in streaming and live for the next 10 years. Fans will have to subscribe to an AppleTV service to have access
Fans Of The Jungle:
Tweets Of The Week:
Until Next Time,
Soren