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BFD Expert Voices - Media Deals

BFD Expert Voices

Unlike other media-tech companies, Spotter isn't predicting dramatic cuts in response to the market turmoil, Kerry writes. 

Why it matters: As other startups and tech giants lay off staffers or slow hiring, Spotter executives say they're hiring. 

How it works: Spotter is an LA-based startup that gives YouTube creators cash in exchange for licensing their back catalogs. 

By the numbers: Spotter grew from 20 employees to about 100 over the past year. 

"We wanted to put most of the capital into creators' hands, and so we kept our overheard really low," CEO Aaron DeBevoise says. "We've just gotten to 100 people, and I think [other] people in our positions may have gotten to 1,000 people pretty fast."

It plans to have about 13o to 140 employees by the end of the year. That level is "probably a good point for us to check in and go, 'Okay, is this all going well?'"

Details: Spotter says it's profitable. The company declined to disclose revenue figures. Its last funding round of $200 million, led by Softbank Vision Fund 2, valued the company at $1.7 billion. 

Spotter has deployed about $450 million to creators to date across about 300 deals — some of which are second or third deals with the same creators. The deals have ranged from $10,000 to $40 million and typically last five years. 

Yes, but: DeBevoise says Spotter is hiring at a slower pace, though not "because of the economy" but rather to evaluate their needs as they start to build out more departments, including a marketing team. 

"We've been super focused on making sure everything we're doing is real and rooted in the numbers," COO Nic Paul says.

What's next: DeBevoise says his team has considered acquisitions such as tools for creators or companies focused on community. 

1 big thing: Spotter is hiring

Illustration of a social media "like" icon made out of a $100 bill.

An influx of alcohol brands figure to make their Super Bowl ad debut next February in light of Anheuser-Busch InBev's decision to give up its category exclusivity, which it's held since 1989, Tim writes.

Why it's the BFD: While the Super Bowl still provides the biggest audience out there for advertisers, some longtime marketers are starting to sour on its exorbitant price tag. At the same time, it's allowed for smaller brands to play in a sandbox that used to be off-limits. 

Between the lines: Anheuser-Busch is the only brand to enjoy category exclusivity during the Super Bowl, which it gets by promising to spend ad dollars on other properties owned by whichever network is airing the big game that year. 

A source with knowledge of these deals tells Tim it's likely that Anheuser-Busch no longer felt it was worth it to spend on those other properties, in addition to lowering its overall spend on the big game. 

Unlike in 1989, there are many more ways to get your brand message to the masses.

The Super Bowl has become a younger brand's game: During February's Super Bowl LVI, 40% of the in-game advertisers were first-timers.

What they're saying: "The Super Bowl is a huge tentpole moment for consumers, but it doesn't necessarily line up with the key moment of consumption for the beer industry,” Spencer Gordon, Anheuser-Busch's vice president of consumer connections, told Adweek, which first reported the news yesterday. 

"We are evolving our investments so that our brands reach the right consumers, at the right time, in the right place, with the right messages."

Gordon added that Anheuser-Busch still expects to buy ad time during next February's Super Bowl LVII, which airs on Fox. 

Be smart: Anheuser-Busch is not the only longtime brand that's shrinking its relationship with the biggest sporting event of the year. Pepsi is ending its 10-year sponsorship of the halftime show.

2. The BFD: 🏈 A Super opportunity

Illustration of a football in the shape of a dollar sign, sitting on a kickoff tee.

Though the majority of Anheuser-Busch's Super Bowl dollars have been allocated toward Michelob and Bud Light, the beverage giant has spent a lot lately on its newer seltzer brands over the past four years, according to data from iSpot.tv, Tim writes.

Why it matters: With a viewership in the 100 millions, the Super Bowl is still the best way to introduce a new product to a wide audience.

By the numbers: Anheuser-Busch has spent an average of $49.6 million over the previous four Super Bowls.

That average is pulled down by a drop in spending for Super Bowl LIV in 2020. The beverage giant spent $40 million that year, compared to more than $52 million in each of the other three years. 

The biggest non-Anheuser-Busch companies that advertised on NFL games include Constellation Brands (Modelo/Corona), Diageo (Crown Royal/Captain Morgan), Molson Coors (Miller Lite/Coors Light), Bacardi and Heineken International. 

Constellation was the biggest of those companies, taking up nearly 17% of all national TV spending in the category each of the last two seasons. 

💭 Tim's thought bubble: I'd expect to see those brands show up in February.

3. Charted: AB InBev's Super Bowl spend 

FanClash, an Indian e-sports fantasy startup, raised $40m in Series B funding. Alpha Wave Global led, and was joined by Sequoia Capital India, Info Edge and Polygon. http://axios.link/7zKk 

Kairos, a San Francisco-based NFT creation tool, raised $2.6m. Worklife Ventures and Seven Seven Six co-led. http://axios.link/1UL6

Reddit acquired Spell, a New York-based AI and machine learning startup. It last raised $15m in Series A funding led by Eclipse Ventures and Two Sigma Ventures in 2019. http://axios.link/ZeuO

BUCK, a global creative company, merged with VTProDesign, an LA-based interactive design studio. http://axios.link/2Y2F

4. Deal flow

WWE founder and CEO Vince McMahon has "voluntarily stepped back" as CEO and chairman amid an "investigation into alleged misconduct." His daughter Stephanie McMahon will serve as interim CEO and interim chairwoman. http://axios.link/KwXM

Fanatics hired former Dick Clark Productions CEO Mike Mahan to serve as CEO of its new collectibles division. http://axios.link/qFQp

BuzzFeed News named executive editor, culture Karolina Waclawiak as its new editor-in-chief. http://axios.link/vP5y

Warner Bros. Discovery departures continue: Todd Weiser, SVP, programming and development at Food Network and Cooking Channel; Corie Henson, EVP, head of unscripted programming for TBS, TNT and truTV; Larry Laque, co-chief information officer and EVP of facilities and real estate; Kristin Brown, SVP of communications, Investigation Discovery and Travel Channel; Jessica Driscoll, SVP of communications, factual and Discovery+ documentaries; and Doug Seybert, group SVP of marketing. http://axios.link/mGqW

300 Entertainment promoted Rayna Bass and Selim Bouab to co-presidents. http://axios.link/cAZH

Mattel named Disney's Josh Silverman as chief franchise officer and global head of consumer products. http://axios.link/VJ0t

ABC named Ari Goldman as SVP, content strategy and scheduling, and promoted Candace Bejune to VP, program planning and scheduling. http://axios.link/LJm3

5. Movin' on up (or out)

The big business of being a Peloton instructor (TIME)

"These instructors may film eight Peloton classes a week and spend hours planning workouts, creating playlists, and writing scripts for future sessions. But these days, that's just the baseline. Having built considerable followings on social media, they've also become influencers, able to drive fans who admire their lifestyle to buy the items they're hawking," Eliana Dockterman writes. 

How Netflix, Disney+, and HBO Max are fighting for kid audiences as YouTube and TikTok take hold of Gen Alpha (Insider)

Hollywood may be realizing that children's programming is "not a silver bullet" for acquiring or retaining subscribers, said Eric Berger, CEO of Common Sense Networks — the for-profit affiliate of Common Sense Media that last year launched kids-first streamer Sensical. 

TikTok exec: We're not a social network like Facebook, we're an entertainment platform (CNBC)

"Facebook is a social platform," Blake Chandlee, TikTok's president of global business solutions, told CNBC in an interview yesterday. "They've built all their algorithms based on the social graph. That is their core competency. Ours is not."

6. Channel surfing

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

☀️ Situational awareness: Tim and Kerry are both headed to VidCon next week. Let us know if you'll be there, and check out Kerry's panels next Thursday and Friday. 

Also, we're off on Monday for Juneteenth. We'll be back in your inboxes on Tuesday. 

@tim_bays: No TV for me this weekend. Spending the long weekend in Lake Arrowhead surrounded by trees and a backyard, which will make my dog happy. 

@kerrymflynn: "Westworld." Season 4 trailer. So not a big fan of the flies all over people. But yes, I'll be watching this show every Sunday when it comes back next week.

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June 17, 2022

1 big thing: Spotter is hiring