In the past year, media giants have heavily relied on sports content to attract advertisers during the Upfronts meetings. This strategy became even more pronounced due to factors such as a Hollywood strike and cost-cutting measures that impacted their ability to showcase scripted shows and star-studded content.
The aftermath of the previous year’s work pause meant that some companies had a smaller pool of series and movies to highlight during their presentations. As companies like Disney and Warner Bros. Discovery implemented cost-cutting measures, live sports emerged as the preferred choice for attracting large audiences and securing significant advertising revenue.
Tom Rogers, Oorbit Gaming and Entertainment executive chairman and former NBC Cable president, highlighted the shift in strategy for traditional media companies. There has been a decline in traditional TV viewership, coupled with increasing fees for airing live sports, forcing companies to reevaluate their content spending and prioritize sports over entertainment programming.
Despite the emphasis on sports content, companies like Disney and Warner Bros. Discovery still showcased their upcoming series and movies during the Upfronts. Disney promoted trailers for Disney+ series like “Agatha All Along” and “Daredevil: Born Again,” while Warner Bros. Discovery featured spinoffs of HBO series such as “House of the Dragon” and “And Just Like That.”
Amy Leifer, chief advertising sales officer at DIRECTV Advertising, emphasized the importance of content quality in the modern TV landscape, where ad-supported streaming services have gained significant traction. The success of streaming platforms like NBCUniversal’s Peacock, fueled by blockbuster films like “Oppenheimer,” underscored the viability of original content in attracting viewers and advertisers.
The Resurgence of Films
In the wake of the pandemic, the film industry faced challenges with the shrinking summer box-office season and a decline in ticket sales. However, the fourth quarter is expected to bring a resurgence with highly anticipated titles like “Joker: Folie a Deux,” “Gladiator II,” “Moana 2,” and “Wicked” hitting theaters. The coming years also promise a slew of major franchise releases, setting the stage for a revitalization of the movie calendar.
Streaming giants like Netflix and Amazon Prime Video have capitalized on the demand for content, introducing ad-supported tiers and showcasing upcoming films and series at the Upfronts. Amazon, now owning MGM Studios, highlighted renewals of original series and announced new projects, while Netflix unveiled plans for sequels and a diverse slate of series to keep audiences engaged.
The prominence of live sports in Upfronts presentations remained a constant, with the NFL and tentpole sports events like the Summer Olympics and NBA drawing massive audiences and advertising revenues. According to Mike Dupree, chief revenue officer at Teads, live sports have become a key driver for securing placements in the changing landscape of content consumption.
NBCUniversal’s focus on the upcoming Summer Olympics and the presence of sports content in all presentations, including streaming platforms like Netflix, demonstrated the enduring appeal of sports in the media industry. Major deals like Netflix airing NFL games on Christmas Day underscored the continued reliance on sports to drive audience engagement and advertising opportunities.
The evolving trends in media advertising point to a strategic shift towards sports content as a reliable revenue generator for media giants. While scripted shows and films still hold significant value, the emphasis on live sports and quality content reflects the changing preferences of audiences and advertisers in the modern media landscape. By adapting to these trends and investing in compelling sports and entertainment offerings, media companies can navigate the competitive market and stay relevant in an increasingly digital world.