00:00We've seen the experiment over the last couple of years. They also had, they talked about,
00:03you know, 70 live programs that they had just in Q1 alone. A decent chunk of those were in
00:08the sports space. And I am curious as to how much some of these live sports programming
00:12might actually end up being more accretive to this company, particularly when it comes to not
00:17just subscriptions, but ad sales. Yeah. Thank you for having me. And the advertising world
00:24revolves around live sports, especially on TV. And it's because live sports has a unique ability
00:30to draw a large and engaged audience with both the programming and the advertising. So what you
00:37get is both volume as a lever and pricing of advertising of monetization per minute, per
00:43person at a higher level than anything else in the content library of any of these media companies.
00:48So live sports is the, really the engine that powers this whole ecosystem. And it also has a
00:56positive effect on subscribers as well. But in advertising, the way these media companies go
01:02to market is they are using live sports as the center of the packages that they're selling to
01:07advertisers. And in that case, it drives the rate up, the cost per thousand impressions that these
01:14media companies can charge. And live sports is at the absolute pinnacle of that pricing.
01:18And what EDO's data shows is it's worth every penny. Right. It drives more engagement on a per
01:23person basis with the advertising. Right. Than anything else on TV bar none.
01:27For the live sports. For the live sports. So the CPM that they get on the live side though,
01:31does that transfer over to a certain extent to the rest, you know, sort of I watch Bridgerton or
01:35something else and I'm getting ads? Packaged correctly. Not that I've ever seen Bridgerton.
01:39I've kind of seen it. It's okay. It's a good show. It's a great show. Yeah. Uh, uh, fourth season,
01:45right? Um, so it, it, it powers a lot of the packaging and the overall rate that you can get
01:51from the pre premium end of, of advertising, which are these large fortune 500 brands that are
01:57spending, you know, billions of dollars across the television landscape. Uh, the whole upfront is
02:02driven by live sports and upfront is still a place where tens of billions of dollars transact
02:09in a matter of months, uh, for the rest of the year. And live sports again, is the,
02:14is the magnet that pulls those dollars in and it lifts many of the boats across television. Um,
02:20and what Netflix has done a really great job of is scaling up globally, their infrastructure and
02:26their, their advertising. Uh, they're bringing a lot of subscribers into that tier. They also have
02:32this lever of, of price and on advertising and life sports draws it. Now they don't have the scale
02:39in life sports that a lot of the other competitors do. Um, there's a lot of competitors that have been
02:44doing this a long time. Yeah. Amazon, uh, who we haven't even talked about has been doing Thursday
02:49night football on prime video now for over there in there going into their fourth season. That's right.
02:55Well, I mean, to that point, you bring up football and you think about the NFL and just,
02:59you know, how expensive it is. There's talk about, you know, those 50% early increases in their rights
03:04fees. Uh, and the idea that that's something that Netflix might have to hoard cash to sort of pay up
03:10for. I mean, you take a look at the risk reward there. Would it be worth it given that it
03:14is a very
03:15competitive established market? Netflix has some NFL already, right? But yes, you're in a hugely
03:21competitive space. When you're talking about the rights to the NFL, you've got, um, reports of
03:26YouTube looking at five games this coming season from the NFL up from the two that it did last season.
03:33Um,
03:34you've got, you know, NBC universal, uh, Paramount, uh, Fox and, and Amazon all competing there. And, you know,
03:43I think it's a driver of, uh, of audience. It's a driver of subscribers in the case of a service
03:49like Netflix or,
03:50or prime video and at, at Amazon. And you've got it as a driver of, of price because it's worth
03:55it.
03:55Yeah. What we see from our data is that the NFL drives more engagement per ad. And because it's
04:01such a large audience, you'd have to buy in some cases, hundreds of ads to replace a single ad on,
04:07on an NFL game in prime time. So the dollars there are, are, are rational. And frankly, there is some
04:15support to the idea that the NFL rights are underpriced. Yeah. And we don't have much time left,
04:19but I do want to bring in something that we were talking about with John Rogers and that is women's
04:23sports that they're a proven performance driver. And I think there's still a lot of people out there
04:29that would be surprised by that. WNBA led the way in this, um, and Disney deserves a ton of credit
04:36for being
04:36an early supporter and backer. The unlock was the stardom, uh, that we saw from, you know, a pioneering
04:43group of the athletes, uh, coming out of college basketball and into the WNBA who became household
04:49names that drives audience, audience drives the media dollars, and then you get the wheel turning
04:55in a way that supports other leagues in women's sports. And so, you know, we saw, we, we called it
05:01the Caitlin Clark effect that Caitlin Clark on television, whenever she was in a game in college
05:06and then heading into the WNBA, you saw larger audiences, more engagements with the, more engagement
05:12with the ads. And when Caitlin Clark was in an ad, you saw even better performance for the advertisers
05:17that were backing her as sponsors. That kind of wheel starts to really turn.
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