The Copa Libertadores da América from 2023 will be re-announced by Globo. In the market, few were surprised. For the leading announcer in the audience, football is not only visible during matches, but also in the various attractions of the broadcaster, which increase the popularity of sports and clubs and fans.
As this awareness grows, so do the potential for clubs and Libertadores themselves to increase their revenue from funding and sales of goods and services.
The deal is good for clubs, but better for Globo. The announcer wins with the football audience and returns with enthusiasm to the market. After the announcer broke his contract with Conmebol during the tragedy, few thought that the owner of the Libertadores would return to negotiate with Globo.
It is worth remembering that the dispute between Globo and Conmebol even ended in court. The case was settled after the plaintiff paid a fine of R $ 223 million. In addition to losing Libertadores, during the catastrophe, the broadcaster also relinquished the state football championship.
The expectation of several analysts was that an audience apocalypse would occur at the carioca station. Despite the rare and occasional times when competitions led spectators to football matches, Globo happily followed the Ibope leadership even on match days.
Now, the trend is that, with the return of football, the profits of Globo in Ibope will be expanded and will dominate more on open TV. And this is probably not the biggest victory of platinum venus.
The globe won the war
Another important factor for Libertadores’ return to Globo is perhaps the fact that the station has been able to “remove” the foundations of its old contracts and become the most powerful dialogue on open TV.
In November last year, when I interviewed Manuel Belmar, Globo’s chief financial officer, he said that misunderstandings with partners in recent years were significant, and that there was “positive force” about sports deals and that Globo would try. to restore all competitions that have left its grid.
But according to Belmar, this would only be possible provided that the “economic situation makes sense”. That is, the plan will be to close contracts only when there are prospects to benefit the business.
If the Globo was closed by Libertadores, it was because it acquired a planned value and proved that its power as a platform to promote Libertadores is worth as much, or more, than the money it pays for justice.
As I heard from Erick Brêtas, Globo’s digital goods and services director earlier this year, “Globo did not lose the state championship because it has no money. It is an option. For Globo to prioritize certain rights, it needs to give. Others.”
Globo has more than 15 billion BRL in cash and in this first quarter it received 1.3 billion BRL. If, on the one hand, Globo’s prominence in football broadcasting is not shaken, streaming is a growing risk.
Why flow can threaten Globo
The Globo has reason to celebrate Libertadores’ return to its schedule, but the Disney victory, and especially Paramount, should be cause for concern. Disney is already big and has been introduced in Brazil in the sports section by ESPN, not a new thing. But Paramount +, Paramount’s streaming service, is still small in the country, but full of aspirations and intentions to invest.
Paramount is a major American media company that changed its name from ViacomCBS earlier this year to strengthen its promise to flow into the market. The group owns CBS, the largest TV network in the United States, and a number of cable channels such as MTV and Nickelodeon, as well as the Paramount studio.
Paramount’s main shareholder family has historical problems and was even one of the main motivators for the HBO “Succession” column. Shari Redstone has been at war with her father Sumner for two decades with CBS president Les Moonves, one of Hollywood’s most respected names, under Paramount control. Today, he is the president of the company.
Shari would play Shiv of Succession with Sumner, the father of the Logan family of media moguls. Sumner, like Logan in the ranks, his age and mental capacity were questioned by his children. Despite the confusion, the studios main and flow main+ they have done well.
Good operation of Paramount
The films “Sonic 2” and “The Lost City” gave Paramount a 21% share of the American box office this year. In the five years before this catastrophe, the company had an average market share of 6%. Another company property is “Top Gun: Maverick”, which is coming soon to the movies.
The expectation is that the film with Tom Cruise will help the company earn more than R $ 1.1 billion at the box office in the second quarter. The value is greater than the total revenue of the company office in 2022. After 45 days of its opening in theaters, Top Gun will arrive at Paramount + and should expedite the registration process.
Paramount + added 6.8 million customers to its streaming service in the first quarter. HBO Max took over 3 million, Peacock 4 million. Disney + added nearly 8 million, but worldwide. The Netflix leader lost 200 thousand.
Unlike its competitors like Netflix, Disney and Warner Bros. Discovery, which reduces costs, Paramount + speeds up investment. The share of the irrigation business showed an operating loss of R $ 2.3 billion in the first quarter, despite revenue growing by 82% year-on-year to around $ 5.6 billion.
The company’s cash flow was R $ 1.2 billion in the quarter, compared to about R $ 8.2 billion in the same period last year. The company’s goal is to reach 100 million customers at Paramount + by 2024, with the business losing big money by 2023, then declining to a profit in the next few years.
Money will not be an issue in the short term. Thus, Paramount + has the potential to grow rapidly and prove to the market that football is a unique weapon in the flow. But that will only make the justice crisis more serious (and costly).
In addition, if Libertadores on Paramount + goes out and falls in popular taste, Conmebol will not only find a new and “rich” client, but may also strive to create a viable alternative for Globo within streaming. There may be more attractions around football, such as reality films and shows about Libertadores, clubs and players. This would solve one of Globo’s competitors’ shortcomings on plain TV, which is limited to match shows, without maintaining content on the grid.
Why the flow of football will be revolutionary
As the growing number of spectators changes and flows, it is natural that major attractions will follow. But as football outside the Globo has already shown, consumption is also a habit.
The streaming platforms will have to prove that they can create new behaviors among football users in Brazil. In streaming, it will be possible to broadcast several games at the same time, as opposed to TV, which is limited to one match. Streaming all the matches helps, and digital still offers a wide range of possibilities, from cameras with different angles, to access more data and to purchase products during advertising.
If Paramount + becomes public, the next Globo talks should be even more difficult. In addition to competing with cultural competitors, it will have to deal with foreign media bosses such as Disney, Paramount and Warner Bros. Discovery, and major technologies like Amazon, as well as the possibilities of Google, TikTok, Apple, among others.
Globo has Globoplay, so it would be more accurate to say that moving from football to streaming will be a bigger problem for TV than for Globoplay.
This year, in a Libertadores sales submission that Conmebol distributed among its prospective buyers, it was possible for the competition to be purchased exclusively for streaming, as revealed by journalist Erich Betting.
Conmebol sold the competition for R $ 1.5 billion, a revenue record, so it won as well. Flow undoubtedly played an important role in this number. Paramount, Amazon and Disney also opposed those rights. The OneFootball website purchased the most important items for the tournament.
Cricket case in India
Surprisingly, perhaps the best country to look at the potential flow of direct championships is India. Cricket inspires the same passion for Indians as football in Brazil.
There, cricket matches have been a regular run for a longer period of time than in Brazil. By the way, it is one of the reasons for the rapid growth of Disney + members worldwide. The platform holds the IPL (Indian Premier League) broadcasting rights. But the deal expires this year.
The fierce competition for IPL rights continues. The number (and size) of the company in dispute suggests: Amazon, Disney, Google, Sony and India Reliance and Zee Entertainment, as well as the Dream11 dream website, are in progress.
Viewers of the major cricket league are second only to the Premier League and NFL (National Football League). Last year, IPL attracted 600 million viewers. India is one of the largest and most competitive entertainment market in the world.
Despite the huge investment in India, Netflix slips into the country. This year, the streaming leader is expected to release more than 70 local versions in India (no live games), but it is stuck with more than 5 million users, a quarter of the number it owns in Brazil.
The expectation of the Indian government, which owns IPL, is to sell the competition to TV and streaming, from 2023 to 2027, for more than $ 35 billion (because IPL is worth $ 35 billion and Libertadores is only $ 1.5 billion). billion is the topic of another column, but the fact that the football tournament in South America is not “international” and has fewer spectators than cricket, which reaches all over Asia, and much of Europe and Canada, is a factor).
In the United States, there is also a growing dispute over the rights to broadcast live competitions on streaming. Amazon last year closed NFL broadcasts Thursday night. It will pay around R $ 5 billion a year. Apple TV + now has MLB games on Friday.
For now, Globo stays well on open TV. But it is hard to imagine that Conmebol is not looking at these other markets and imagining how to grow in the flow, where there is a lot of money and Globo does not have the same power of negotiations. For football fans, game days on open TV can be very rare.