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BFD Expert Voices

Venture-backed audio network Starglow Media plans to launch its first original series next month and three more next year as it grows its portfolio of kids and family shows, CEO Jed Baker tells Kerry.

Why it matters: A recent UTA study found 93% of parents surveyed reported their children's interest in audio content has increased over the last 12 months. 

Catch up quick: Baker unveiled Starglow Media in August with five licensed shows. He has raised just over $2.5 million from Powerhouse Capital, Watertower Ventures, UTA, BDMI, K5 Ventures, Matt Rice, Peter Benedek and Max Cutler, along with Jenna Bush Hager and her company Thousand Voices.

This interview was edited for clarity, style and length.

What differences did you see in TV versus audio?

"TV is so slow. There's so many decision-makers. ... While I'm the biggest TV fan you'll ever meet, I just love this direct-to-consumer platform that was becoming increasingly more high-end."

"When Wondery sold to Amazon, it was a bit of a wake-up call [for me to build] an audio network."

"It's the fastest-growing segment in audio right now. There is a real movement from parents to get their kids not off screens but to supplement screens."

"I think people haven't been monetizing in the right way for a long time in this space. I think people are a little more scared about advertising in the children space than they need to be. ... We're playing by the rules. You can still do advertising."

"I don't think this space is big enough yet to really consider anyone a competition. If Realm or iHeart or Wondery has success in the kids and family space, that's great for me. ... [Many] parents ultimately don't know that this medium exists."

"It's phenomenal that [Disney's 'Frozen' podcast] did so well. The rise in brands approaching us saying we want to turn our big properties into podcasts has been staggering."

1 big thing: Investing in kids and family audio

a photo illustration of Starglow Media CEO Jed Baker next to wavelengths and squares

Jed Baker. Photo illustration: Tiffany Herring/Axios; Photo: Courtesy of Starglow Media

Activist investor ValueAct's move to amass a large stake in Disney is expected to help — not hurt — the company's efforts to thwart Trian Partner's second campaign to seize seats on the board and push for major changes.

Why it's the BFD: The arrival of the San Francisco activist fund to the Disney drama is seen as a positive for the company, but it still turns up the heat on CEO Bob Iger and his effort to boost a sagging stock price, Tim and Michael Flaherty write.

The big picture: Even before the investment, ValueAct CEO Mason Morfit had a friendship with Iger, per Bloomberg. Suffice it to say, Iger is on different terms with Trian co-founder Nelson Peltz.

ValueAct's brand of active management is built not on running proxy fights but on working closely with management on changes and boosting value. The fund is known for influencing large institutional investors behind the scenes to back their value creation thesis.

CNBC's David Faber reported yesterday that Morfit is largely "supportive" of Disney's current strategy and has been in contact with Disney management.

The size of ValueAct's stake is still not known. Trian listed in an SEC filing yesterday that its Disney stake is 32.8 million shares. The majority of those come via ex-Marvel chairman Isaac Perlmutter, who has handed voting power to the Trian.

By the numbers: Disney's stock closed yesterday up 3% and is trading at $93.85 so far this morning, roughly even with where it closed.

What they're saying: ValueAct's entry into the stock is being seen by analysts as a white knight coming to help rather than another agitator stirring the pot.

"The appointment of a VA director would certainly make life much tougher for Nelson Peltz, if he continues to seek multiple board seats," Gordon Haskett analyst Don Bilson wrote in a research note.

Disney white knight rides into the Trian fight

2. The BFD: Bob Iger's white knight

Illustration of two hands grabbing for a Mickey Mouse ears hat surrounded by abstract shapes.

Data: Pew Research; Chart: Tory Lysik/Axios Visuals

The share of TikTok users who consume news through the platform has nearly doubled since 2020, according to new Pew Research Center data.

What's happening: The Pew study shows that news consumers have accelerated their shift toward digital channels in the past year, Axios Communicators' Eleanor Hawkins writes.

Roughly one-third of adults under age 30 regularly scroll TikTok for news, a 255% increase since 2020. The TikTok increase is taking place across all age demographics, not just younger Americans.

3. Charted: TikTok for news

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• Bezi, a collaborative 3D design platform, raised $13m in Series A funding. Benchmark led and was joined by Uncork Capital and Designer Fund. https://axios.link/3G2Ek0y

• Handraise, an AI startup focused on earned media insights for brands, raised $6.4m from Floodgate, Firebrand Ventures and Bill Wood Ventures. www.handraise.com

• North Road, backed by Peter Chernin, acquired Little Room Films, "The Last Dance" director Jason Hehir's production company. https://axios.link/3SGsS2c

• Meng Ru Kuok, founder of Singapore-based Caldecott Music Group, acquired the assets of Gawker from BDG. https://axios.link/3QxNOpm

• Wave Sports + Entertainment launched a podcast and digital series with Carmelo Anthony and The Kid Mero, "7PM in Brooklyn." https://axios.link/3SJ5Zvk

4. Deal flow

• Leon Wilson was named CEO of Banijay UK labels Shine TV and Zeppotron. https://axios.link/3QYv1oG

• Stephan Schmitter was promoted from chief content officer to CEO of RTL Deutschland, effective Jan. 1, 2024. https://axios.link/47bFZNi

• Philip Bell was named chief commercial officer of Malta-based iGaming operator PressEnter Group. https://axios.link/3QEMRf6

• Jessica Probus, SVP of editorial at BuzzFeed, was promoted to publisher as Dao Nguyen leaves the company after 11 years. https://axios.link/3sDu1gu

• Alan Miller, co-founder of Activision, joined Mob Entertainment as VP of analytics and business intelligence. https://axios.link/3MLH6eF

5. Movin' on up (or out)

🤖 YouTube teases AI tool that clones famous singers — with their permission (The Verge)

"YouTube says its Dream Track feature is currently being tested with a 'small group of select US creators,' and can produce tracks in the style of nine artists; Alec Benjamin, Charlie Puth, Charli XCX, Demi Lovato, John Legend, Papoose, Sia, T-Pain, and Troye Sivan," Jon Porter writes.

⚾ Sinclair says Diamond Sports subsidiary likely to close in 2024 (Bloomberg)

"Diamond may liquidate next year if it can't find a way to keep the company operating beyond 2024, Andrew Parlen, a lawyer for the company, said on Wednesday. Sinclair, now operating independently of Diamond, sees that as the most likely outcome," Jonathan Randles and Steven Church write.

👋 On Rupert Murdoch's last day as News Corp chair, mogul says he hopes to keep "active role" at company (THR)

"But while he says that he intends to stick around in some capacity, he ended his commentary with a farewell reflecting on his past. 'My life has certainly been fortunate,' Murdoch said," Alex Weprin writes.

6. Channel surfing

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

🗓️ Programming note: Join Axios' Dan Primack today at 12:30pm ET for a virtual event on the 2024 outlook for venture capital. 

Guests include Oak HC/FT co-founder Annie Lamont and Sapphire Ventures managing director Rajeev Dham. Register here.

@tim_bays: "Monarch: Legacy of Monsters" on Apple TV+. I'm all for more Godzilla, plus Kurt and Wyatt Russell playing the same character. 

@kerrymflynn: "Network of Lies" by Brian Stelter. Excited to listen to all 11 hours of this deeply reported book on Fox News by my former CNN colleague.

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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

November 16, 2023

1 big thing: Investing in kids and family audio