Author: Jared Rohlfing

NFL Ratings Surge Blessing for TV Networks

On By Jared RohlfingIn Cable, Nielsen, Sports, TelevisionLeave a comment

CNBC’s recent article covering the NFL ratings surge experienced by the league this past year is an insightful look at the important role sports broadcasting plays in the world of television.  According to the news site, the NFL’s ratings grew by five percent this past season after years of decline. This will be monumental for the league as renegotiations with television networks are set to begin in 2021.  Not only is this good news for the NFL, but also for TV networks in general who rely heavily on strong sports ratings for advertising revenue. CNBC’s report stated that sixty-three percent of the Fox networks gross ratings last year came from the NFL alone.  In recent years, TV networks have seen their NFL ratings take a sharp decline as consumers continue to transition away from cable TV in favor of cheaper streaming services. Interestingly, this past year overall the league saw their ratings among the eighteen to twenty-four demographic shrink by slightly less than five percent while ratings among older viewers grew.   

I found this article to be of particular interest to me because it perfectly encapsulated the pivotal role sports broadcasting, particularly the NFL, plays in the overall success of traditional TV networks.  The statistic that more than half of the Fox networks gross ratings come from football alone completely took me by surprise by how critically important the NFL is to cable television. This news of a ratings leap will definitely give the league a significant amount of leverage in the coming months when negotiations resume between the NFL and television networks.  It remains to be seen however, how long this surge in ratings will last; as streaming continues its inevitable growth.   

https://www.cnbc.com/2019/09/05/tv-networks-need-nfl-ratings-rebound-to-continue.html

Netflix 2019 Fourth Quarter Review

On By Jared RohlfingIn Netflix, StreamingLeave a comment

The New York Times reports that Netflix recently acquired 420,000 new subscriptions to their streaming service in the last three months of 2019.  The company had hoped to gain around 600,000 new subscribers but fell short of their initial projections. Reed Hastings, Chief Executive Officer of the streaming juggernaut acknowledged that the recent launch of Disney Plus may be to blame for the slowed growth.  He cited the great lineup of content Disney is offering on their new service as a potential reason behind the missed projections. However, this is not to say that Netflix is in any way starting to slow down in its monumental domination of the streaming landscape; it just may have to share the limelight with Disney Plus to a certain degree.  Netflix still has a whopping sixty one million subscribers in the United States alone, making it by far the biggest streaming service available on the market. After the recent report of missed projections, Netflix’s stock still rose two percent. Ultimately, the company hopes to gain an additional thirty million subscriptions in the United States over the next few years.  

I found this article to be fascinating as it serves as a perfect example of Netflix’s staying power and ability to remain not only relevant; but the indisputable king of streaming services.  Even when the company misses their targeted projections, they still grow on the stock market which perfectly encapsulates investors faith in the company. It remains to be seen if Disney Plus and new streaming services such as NBC’s Peacock which launch in the coming months will take a chunk out of Netflix’s market share; however as of right now it is undeniable that Netflix remains top dog.  

Penn National Gaming Purchases Stake in Barstool Sports

On By Jared RohlfingIn Brand, Media Covergence, News Media, SportsLeave a comment

Penn National Gaming recently purchased a stake in the online media sports site Barstool Sports.  The purchase will make Penn the new official gaming partner for the next forty years. According to CNN, Penn purchased a thirty six percent stake in Barstool worth 163 million dollars.  The report states that the company will increase their stake in the company in the next three years. Penn National Gaming operates dozens of casinos and racetracks around the country so their presence in the gambling business is already quite substantial.  The Supreme Court in 2018 struck down the longtime ban on sports betting so the purchase overall makes sense and is not totally unexpected. Many companies in the industry are now beginning to expand their operations as sports betting is projected to hugely increase in its exposure nationwide.  

Barstool Sports in recent years has become a juggernaut in the sports media industry, becoming one of the dominant forces in the online community with their blog posts.  In their article covering the purchase by Penn, CNN made a great point that the purchase will begin to blur the line between sports media companies and the sports betting industry.  I found this article in particular to be interesting as I’ve witnessed over the past few years Barstool’s rise from an unknown blog site to one of the biggest media companies in the sports industry; specifically in its appeal to the younger demographic.  I also found it incredibly interesting that Penn will be Barstool’s official betting partner for the next forty years. This substantial amount of time, which I’m sure was done solely for legal purposes, shows that Penn sees tremendous value in Barstool as a brand because of this huge commitment. 

https://www.cnn.com/2020/01/29/media/barstool-penn-national-gaming/index.html

Disney Plus Could Hit 60-90 Million Users Sooner Than Anticipated

On By Jared RohlfingIn Streaming, UncategorizedLeave a comment
https://variety.com/2019/tv/news/disney-plus-subscribers-60-million-goal-1203408455/

According to Variety, Disney may hit their subscriber projections for their new streaming service much sooner then initially expected. The report comes after the recent November launch of Disney Plus that saw ten million subscribers join within a day of the services launch; shattering industry analyst expectations. Disney Plus is essentially Disney’s answer to services such as Netflix and Hulu that similarly offer video content that can be accessed for a monthly subscription fee. Disney recently threw it’s hat in the ring by launching their new service which will serve as the exclusive home for the companies original content as well as for the enormous catalog of films and television shows Disney has created in the past.

Despite the troubled launch that saw users unable to access the service, Disney Plus has proven it’s incredible appeal with it’s vast library of content and new original shows such as “The Mandalorian”. Initially expected to accrue around eight million memberships in its first few weeks; Disney plus blew past that number on day one and shows no sign of slowing down. Some projections predict Disney will hit its goal of having sixty to ninety million subscribers by 2024, two years earlier then anticipated. Some analysts remain skeptical however of Disney’s run-away success because they say a vast majority of the ten million initial subscribers could simply be users utilizing the free trial period offered by the company. Another factor that could play into the huge success of Disney Plus is Verizon offering to give some users a free year of the service to enjoy. Regardless of the initial hype around the new streaming platform, it remains to be seen if Disney can maintain the high interest in it’s newest financial endeavor.