Kagan, a media research group within S&P Global Market Intelligence, is predicting that traditional pay TV companies (i.e. CMCSA, T) will lose another 10.8 million subscribers by 2021, while virtual services like Sling TV (DISH) and Playstation Vue (SNE), grow collectively to 11 million users. It has been estimated that 18 million households (14% of U.S.) will rely solely on over the top, self aggregated, online content, by that time. The news isn’t all bad though for traditional providers, as households with multichannel subscriptions are expected to remain the solid majority for at least the next 5 years.
Kagan Releases Multichannel projections through 2021
Howie Long-Short opines: 10.8 million more cord cutters, fully offset by 11 million OTT subs, in 5 years? This would probably be good news, at least for the cable companies that can charge streamers $100 for high-speed broadband.
Adam Dow-Jones comments: Has the furor over cord cutting gone to far I wonder? Not while these numbers continue to be abysmal. Mr. Dow-Jones smells some value in media though as market overprices these declines.
Fan Marino says: I’m literally just ESPN and ESPN2 away from making the move to FuboTV. Look at the channel lineup, what else do you need?
ClubCorp Holdings (MYCC), the owner/operator of over 200 private golf & country clubs, has been acquired for $1.1 Billion by Apollo Global Management, a P.E. firm. Apollo has agreed to pay $17.12 per share in cash, nearly a 31% premium over the July 7th closing price. The deal, expected to close in Q4 ’17, comes just 3 months after Longtime CEO Eric Affeldt announced his retirement and the firm stated it would not be seeking a sale, despite mounting debt and lagging memberships.
Dallas-based ClubCorp agrees to be bought by private equity giant for $1.1 billion
Howie Long-Short opines: Golf course roll-up strategy, really? Never bought this one. Less than fantastic return for any long-term MYCC shareholders participating in the $14 IPO in 2013. Fortunately for them, Apollo continues the trend of buying out companies flagged for questionable accounting or business models. Good luck.
Adam Dow-Jones comments: Oh boy what a saga this was, between activists on both long and short side. Hardly a great return for IPO shareholders but a nice opportunity for those able to value these hard assets, geared to experiential consumption.
Fan Marino says: If you believe Golf is on the upswing, Acushnet Holdings Corp (GOLF), the owner of Titleist, and Callaway Golf (ELY), both remain public.
Facebook (FB), Twitter (TWTR) and Snap Inc. (SNAP) are said to be among the companies offering 21st Century Fox (FOXA) tens of millions of dollars, for the rights to stream video highlights from the 2018 World Cup. The recent demand for premium video content, from social media companies, provides Fox with a significant new source of revenue and means to promote its television coverage. Fox paid $400 Million for the exclusive rights to air games from the next 3 World Cups (2018, 2022 & 2026), on broadcast and cable TV, in the U.S.
Facebook, Twitter Are Said to Seek World Cup Clips From Fox
Howie Long-Short opines: SNAP is looking for another negative-margin revenue line? I’m not sure why FOX would want to empower future competitors.
Fan Marino says: You have to hope Twitter wins the bidding war. As a real-time news source, it’s the only logical place for game highlights. Your modern day SportsCenter.
Ticketmaster (LYV) has partnered with Cincinnati based start-up Lisnr, as it plans to use ultrasonic sound technology, known as smart tones, to power attendee verification. The signals, inaudible to 90% of humans, are sent from your cell phone as you approach the venue and are verified by scanner at the point of entry, expediting the entry process. Cost, efficiency, the need for fraud protection and the ability to gather data related to attendee habits/preferences, are driving the move to digital ticketing.
Ticketmaster will soon admit you to events using audio data transmitted from your phone
Howie Long-Short opines: I had to scan 13 tickets Saturday. This would have been useful, but I don’t see it having a big impact on the stock price.
Fan Marino says: Technology has caused a loss of jobs, privacy and interpersonal connection, but it is those ticket stubs, mementos of a bygone era, I miss most. Collecting StubHub (EBAY) printouts isn’t exactly the same.
Nike (NKE) CEO Mark Parker announced a partnership with Instagram (FB), enabling the company to sell products “seamlessly” within the photo sharing app. It’s the second major partnership (AMZN) recently announced by Nike, as the company looks to increase revenues by selling directly to the consumer. Instagram, who will not be taking a cut of purchases, now enables brands to tag their products in photos and enables consumers to purchase products within the application.
Instagram and Nike Reach for Fashion’s Holy Grail
Howie Long-Short opines: Nike’s playing catch-up in the digital world. This makes sense though. After trying to defend direct channel exclusivity via stores and nike.com for years, they’re finally facing reality. Amazon cannot be ignored.
Fan Marino says: Kendall Jenner got $250,000 for a single Instagram Post. In my next life, I would like to come back as a brand influencer.
International Speedway (ISCA) released its Q2 EPS ($.30), $.02 shy of analyst estimates. The company reported $165.3 Million in revenue for the quarter, short of the $166.79 Million estimated. CEO France Kennedy said the results met expectations and that the company remains on track for a 4th Quarter GRAND OPENING of One Daytona.
International Speedway (ISCA) Misses Q2 EPS by 2c
Howie Long-Short opines: Boutique hotel? If you ain’t in an RV, it ain’t NASCAR.
Fan Marino says: The Daytona, is going to be a 145-room upscale, full-service boutique hotel, designed with motorsports in mind. I have to imagine the beds will look something like this.
The board for Churchill Downs (CHDN) authorized the buyback of $250 Million in outstanding common shares. The authorized amount includes $114.6 Million that remains from a buyback program authorized back in February 2016. Buyback programs are often an indication that a company believes its stock is undervalued.
Churchill Downs Incorporated Announces New $250 Million Share Repurchase Program
Fan Marino says: Drinking a mint julep at the Kentucky Derby should be on EVERY sports fan’s bucket list. JWS road trip in 2018? Who’s coming with me?
Howie Long-Short opines: The Kentucky Derby is one of a kind, but how bright is the future of horse racing?