FOX SPORTS DIGITAL AUDIENCE DOWN 300% SINCE PIVOT TO VIDEO

comScore (OTC: SCOR) has reported that publishers who have pivoted to video, have seen at least a 60% drop in overall traffic. Fox Sports (FOXA), which made the decision in June to eliminate 20 writing and editorial positions, reallocating resources towards video production, editing and promotion; saw its audience decline an astounding 300%. Unique visitors dropped from 26.4 million in 2016 to just 9 million this past August, with time spent browsing on Fox Sports digital sites decreasing from 136 million minutes to just 56 million minutes.

Howie Long-Short: At the end of 2015, comScore acquired Rentrak; combining its expertise measuring web traffic with their expertise in TV audience metrics. The company appeared to be  prepared to challenge Nielsen (NLSN), before receiving notification it was being delisted from the NASDAQ exchange for non-compliance with SEC filing requirements. In September, SCOR announced it had hired a new CFO, removed 7 members from the board, settled several class action lawsuits and is undergoing a “complex and time consuming” financial review that would delay filing statements, and any chance of being relisted, until at least March 2018. SCOR is currently being traded over the counter. 

Fan Marino: Video ad spend is expected to rise from $10 billion in ’16 to $18 billion in ’20, so pivots to video are about publishers chasing ad dollars. Video is easier to monetize and is more valuable to advertisers, so on the surface it makes sense. Dig a bit deeper and you’ll notice that Fox Sports has experienced a significant decline in video viewership too (down from 1.4 million to 103K unique), meaning it is highly unlikely they are offsetting the loss of visitors with video ad dollars.

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Author: John Wall Street

At the intersection of sports & finance.

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