1 big thing: TikTok's enemies

Illustration of hands fighting over the Tik Tok logo. 

2. The BFD: Dealmakers' deal frenzy

3. Charted: Elon stops tweeting

4. Deal flow

5. Movin' on up (or out)

6. Channel surfing

Illustration of a pair of sunglasses with lenses that look like tv screens.

🗓️ Axios Pro Event: Join us tomorrow at 12:30pm ET for exclusive conversations with Standard General managing partner and CIO Soo Kim and DoubleVerify CEO Mark Zagorski. Register now.

@tim_bays: "Only Murders in the Building" on Hulu. The holy trinity of Steve Martin, Martin Short and Selena Gomez is back. 

@kerrymflynn: "Umbrella Academy" on Netflix. Guess I can't pause my subscription because yet another one of my favorite shows has returned.

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues and Hollywood agents to sign up.

Media Deals

1 big thing: NBC News digital bets pay off

Chris Berend, EVP of Digital for the NBCU News Group; Catherine Kim, SVP of Global Digital News; and Janelle Rodriguez, SVP of NBC News NOW, joined Axios’ Kerry Flynnat VidCon 2022.

2. The BFD: Candle Media boosts brands

Illustration of a collage featuring headphones and pieces of money.

3. Charted: IP in the metaverse

Illustration of a television with a tie dye pattern on the screen.

7. Charli D'Amelio on losing TikTok's top spot

Charli D'Amelio and Brandon Baum at VidCon on June 23, 2022. 

🗓️ Situational awareness: Join us June 30 at 12:30pm ET for exclusive conversations with Standard General managing partner and CIO Soo Kim and DoubleVerify CEO Mark Zagorski, highlighting scoops and top stories from the second quarter. Register.

🎙️ To wrap up her VidCon adventure, Kerry's moderating a panel today about video podcasts featuring Rooster Teeth executives. Read about it in Monday's newsletter. 

@kerrymflynn: "Dog" on Delta Inflight Movies. I'll pretty much watch any film featuring a dog. 

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1 big thing: Independent audio research

Illustration of a hundred dollar bill as an equalizer.  

2. The BFD: Zigazoo's $17M funding

Illustration of a fridge covered in fridge magnet letters spelling out "ka-ching"

3. Charted: 📉 Pay-TV plummets 

Illustration of a surfer with a television in the place of his head.

🤖 Situational awareness: Elon Musk gained access to Twitter data that he requested, but data scientists and specialists tell the WSJ that they doubt it will provide conclusive answers about spam accounts.

@tim_bays: "Borgen" on Netflix. Spent most of my COVID quarantine getting really into Danish politics. 

@kerrymflynn: "Into The Woods" at St James Theatre. I'm finally seeing my FAVORITE Broadway show onstage! 

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues and pay-TV subscribers to sign up.

1 big thing: Video to boost podcast "cool" factor

A.J. Feliciano (Head of The Roost - Rooster Teeth); Geoff Ramsey (Co-founder at Rooster Teeth); Kerry Flynn (Media Deals Reporter, Axios Pro at Axios) at VidCon 2022 on June 24, 2022.

2. The BFD: Idris Elba's Channel 4 bid

Idris Elba. Photo: Photo by Paras Griffin/Getty Images for BET

3. Charted: Foreign-owned sports teams

Illustration of a remote control in the shape of a surfboard leaning against a VW bus.

✍️ Situational awareness: A federal grand jury in New York issued subpoenas to each board director of Digital World Acquisition Corp., Axios' Dan Primack writes.

🗓️ Join us this Thursday at 12:30pm ET for exclusive conversations with Standard General managing partner and CIO Soo Kim and DoubleVerify CEO Mark Zagorski. Register.

@kerrymflynn: "Westworld" season 4 on HBO Max. I'm excited to question the nature of my reality. 

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues, and video podcasters to sign up.

1 big thing: Roblox at VidCon

Photo illustration of Manuel Bronstein, Chief Product Officer of Roblox, with an image of the metaverse and abstract shapes.

2. The BFD: TikTok's new top account

MILAN, ITALY - MAY 26: Khaby Lame during the ABOUT YOU Awards Europe 2022 at Superstudio Maxi on May 26, 2022 in Milan, Italy. (Photo by Franziska Krug/Getty Images for ABOUT YOU)

3. #VidCon sunsets 

Sunset at VidCon, photo by Anthony Quintano 

Illustration of a TV color test screen in the shape of a wave.

🗓️ Situational awareness: If you're at VidCon, Kerry's moderating a panel about streaming and online video for news featuring NBC News executives. We'll cover the highlights in tomorrow's newsletter. 

@kerrymflynn: "Marry Me" by Jennifer Lopez and Maluma. I watched this movie on my flight to VidCon, and I cannot get this song out of my head!

Thank you for reading Axios Pro Media Deals! Please ask your friends, colleagues, and Roblox users to sign up.

CAA's acquisition of rival talent agency ICM Partners — which was completed Tuesday after a 10-month review — winnows the Big Four down to a Big Three.

Why it matters: This acquisition will trigger even more agency M&A as everyone else — but particularly United Talent Agency, which is now a very distant third behind the supersized CAA and Ari Emanuel's Endeavor — looks to stay in the game.

Details: The combination between CAA and ICM will give the supersized firm more than 3,200 employees in 25 countries. A source close to the deal tells Axios that 425 employees from ICM will remain, while 105 employees will be laid off. 

The deal reportedly valued ICM at $750 million — however, a source tells Axios' Dan Primack that it's closer to $800 million. That would give the newly combined company a pro forma value of more than $5 billion. 

Compare that to the publicly traded Endeavor, which owns WME and UFC, among other live event and sports betting businesses, which currently has a market cap of about $10 billion.

ICM, which counts clients like Shonda Rhimes, Vince Gilligan and Samuel L. Jackson, is known for its strong literary division. CAA will likely look to pair that with its robust TV and film representation. 

State of play: UTA has been on its own shopping spree since the CAA-ICM deal was first announced last September. 

In December, UTA bought management consulting firm Medialink for $125 million. 

This month, UTA has bought data and analytics firm MediaHound and acquired U.K.-based talent agency Curtis Brown Group.

Yes, but: ICM hasn't been CAA's only deal. In April, the agency took full ownership of the CAA-GBG Global Brand Management Group from Global Brands Group.

What's next: The gulf between the haves and have-nots is even wider in the agency world. 

For some of the mid-sized agencies like APA, Gersh and Paradigm, the talent drain as ICM moves under CAA could be an opportunity to get a bit bigger and potentially poach clients wary of getting lost in the new supersized agency.  

It also opens the door for someone like Range Media Partners — a management and production firm led by a CAA alum — to gain a bigger foothold in the representation space. 

Between the lines: Private equity firm TPG, CAA's majority owner, has long been rumored to eventually spin off CAA. 

TPG's stock is down 30% since its IPO in January. 

The bottom line: Dealmaking and consolidation are hitting all facets of Hollywood. The question is if recession fears will put the brakes on.

CAA-ICM deal means more Hollywood agency deals

UTA has been on its own shopping spree since the CAA-ICM deal was first announced.

Mergers and acquisitions

CAA&#x27;s acquisition of rival talent agency ICM Partners — which was completed Tuesday after a 10-month review — winnows the Big Four down to a Big Three.Why it matters: This acquisition will trigger even more agency M&amp;A as everyone else — but particularly United Talent Agency, which is now a very distant third behind the supersized CAA and Ari Emanuel&#x27;s Endeavor — looks to stay in the game.

Zigazoo raised $17 million in a Series A funding round led by Liberty City Ventures.

Why it matters: Investors remain committed to a web3 future. This now brings the company's total funding to over $21 million raised to date, following a $4 million seed round last year. 

State of play: As Axios exclusively reported in April, Zigazoo debuted its first kid-friendly NFTs from Nyla Hayes, Moonbug Entertainment — known for "CoComelon" and "Blippi" — and digital animation studio Invisible Universe.

Zigazoo sold out all four of its NFT drops —22,300 different NFTs in total.  Prices for each ranged from $5.99 to $49.99.

Founded in 2020 by two former elementary teachers, Zak and Leah Ringelstein, the company views itself as an educator about web3 and NFTs for children, in addition to a "kid-safe" social media network. 

Details: Zigazoo will use the funding to add more web3 experiences.

Additional investors include Causeway (whose partners include owners from the Boston Celtics and San Francisco 49ers), the NBA, Dapper Labs, OneFootball, Medici VC, Animoca Brands, Lightspeed Venture Partners, Flamingo Capital, Core Ventures, Spartan Group and TikTok stars Charli and Dixie D'Amelio.

"The future of Web3 will be shaped by the children of today, as their creativity expands the range of what is possible," Emil Woods, founding partner of Liberty City Ventures, said in a statement.

Liberty City Ventures leads Zigazoo's $17M funding round

Sports owners and Charli D'Amelio also joined the round.

Funding

Zigazoo raised $17 million in a Series A funding round led by Liberty City Ventures.Why it matters: Investors remain committed to a web3 future. This now brings the company&#x27;s total funding to over $21 million raised to date, following a $4 million seed round last year.

The United States is expected to lose nearly 17 million pay-TV subscribers between 2021-2027, according to a new report from Omdia. 

Why it matters: That is far and away the most of any country and will only further tension among content providers, who likely will ask for price increases, and distributors, who will balk at such demands. 

In particular, the cost of sports has become a major wedge issue in carriage talks, with many regional sports networks being dropped altogether or put on a more expensive tier. 

By the numbers: The gulf between those that are adding new TV customers versus those who are losing them is widening. 

The five countries expected to shed the most subscribers will account for 26.8 million lost customers. The five countries projected to add the most will only add 12.1 million subs. 

India, which is projected to lose the second-most pay-TV subs, has been of particular importance to media giants with streaming services. It is seen as a largely untapped market, though it earns far less revenue per subscriber, as streaming services are priced significantly cheaper compared to other territories.

U.S. to lose more pay-TV subs than any other country through 2027

America will drop nearly 17 million subs, according to Omdia.

Television

Countries with the largest projected changes in pay-TV subscriptions

The United States is expected to lose nearly 17 million pay-TV subscribers between 2021-2027, according to a new report from Omdia. Why it matters: That is far and away the most of any country and will only further tension among content providers, who likely will ask for price increases, and distributors, who will balk at such demands.

Data: PwC Global Entertainment & Media Outlook 2022-2026; Chart: Axios Visuals

Streaming video revenue growth in the U.S. is expected to slow down over the next five years, according to the latest PwC Global Entertainment & Media Outlook.

Why it matters: PwC's estimates are the latest sign that the pandemic created a mirage of streaming's rapid growth and that companies now must adapt to a slower expansion in the U.S. 

By the numbers: Revenues from SVOD (subscription video on demand) services will reach $25.32 billion this year, an increase of 13%, according to PwC.

In 2021, that growth was 19.5%. It was even higher in 2020, when it grew by 37%. 

See also: U.S. digital newspaper ad revenue to surpass print by 2026

PwC: Streaming video revenue growth to slow down through 2026

SVOD revenue will reach $25.32 billion this year.

Streaming media

U.S. subscription video-on-demand- revenue chart

Streaming video revenue growth in the U.S. is expected to slow down over the next five years, according to the latest PwC Global Entertainment &amp; Media Outlook.Why it matters: PwC&#x27;s estimates are the latest sign that the pandemic created a mirage of streaming&#x27;s rapid growth and that companies now must adapt to a slower expansion in the U.S.

Not only is the conference returning after a three-year absence, but this will be the first under new leader Pam Kaufman.

Why it matters: Back in 2018, Viacom acquired VidCon in a bid to better cater to younger audiences. But because of the pandemic, it has only been able to oversee two editions. 

Since then, Viacom remerged with CBS Corp, creating ViacomCBS — which was earlier this year renamed Paramount Global. The convention was put under Paramount's consumer products and experiences division; Kaufman was promoted to president of that division earlier this year.

The VidCon team also includes Sarah Tortoreti, SVP of VidCon's marketing and communications, and Colin Hickey, SVP of VidCon's operations. (Hickey was previously the convention's COO.)

Below, Axios spoke with Kaufman and Tortoreti about what attendees can expect this year.

On being back in person: Unlike most other conferences that shifted toward virtual the last two years, VidCon has not had any version since the pandemic began. That alone provides value, says Kaufman. 

"Not only has the world changed in the last few years, but I can't think of a time where this group of people has gotten together. This really is going to be the first time for this community to be live and all in person in one place," she says.

Though VidCon was created in 2010 to showcase online creators, it was mostly sponsored by traditional media companies looking to market toward its younger attendees. That's no longer the case.

"It's so interesting how it's shifted to YouTube, TikTok, Roblox and Pinterest. The sponsorship among the digital platforms versus traditional media was staggering to me," Kaufman says.

VidCon won't look that much different in 2022 than it did in 2019, except for one thing: web3's outsized presence. (Don't believe us? Just look at the agenda). 

Tortoreti adds that not only has it been three years, but so much about the creator economy is different from the pre-pandemic days. "Things like web3, crypto and NFTs — none of that existed three years ago."

VidCon is taking place during the same week as the Cannes Lions festival in France, which kicked off on Monday. From a dealmaker's perspective, what separates the two? "Cannes is still focused on the advertising and marketing community, and there's a lot of relationships and a lot of business that still gets done there," says Kaufman, while VidCon brings in the community around the industry. 

For some people, Kaufman argues, "the exposure of the platform, exposure to all the sponsors, and the conversation and the people attending are much more valuable."

Inside VidCon's return under new leadership

This will be the first under new leadership led by Pam Kaufman.

Photo illustration of Pam Kaufman, the mountain from the Paramount logo, and colored rectangles.

Photo Illustration: Brendan Lynch/Axios. Photo: Paramount Global

Online video

Not only is the conference returning after a three-year absence, but this will be the first under new leader Pam Kaufman.Why it matters: Back in 2018, Viacom <a class="gtmContentClick" data-vars-link-text="acquired VidCon" data-vars-click-url="https://variety.com/2018/digital/news/viacom-acquires-vidcon-conference-official-1202690303/" data-vars-content-id="d669422a-4842-400c-81ad-31c9e0bd3f87" data-vars-headline="Inside VidCon&#x27;s return under new leadership" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://variety.com/2018/digital/news/viacom-acquires-vidcon-conference-official-1202690303/" target="_blank">acquired VidCon</a> in a bid to better cater to younger audiences. But because of the pandemic, it has only been able to oversee two editions.

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Stories

CAA-ICM deal means more Hollywood agency deals

U.S. to lose more pay-TV subs than any other country through 2027

Liberty City Ventures leads Zigazoo's $17M funding round

Inside VidCon's return under new leadership

PwC: Streaming video revenue growth to slow down through 2026

Newsletter editions

Media: ⏳ TikTok's on the clock

Media: 😵‍💫 Pay TV's downward spiral

Media: 😎 Making podcasts "cool" again

Media: 📈 NBC's digital buzz

Media: Roblox's "vibe" for creators