Twitter Goes Big League, Launches Streaming Network

CHICAGOLAWBULLETIN.COM TUESDAY, MAY 30, 2017

Volume 163, No. 104 Serving Chicago’s legal community for 162 years Twitter goes big league, launches streaming network

witter is leaping into ability to give fans a voice in the streaming sports con - SPORTS MARKETING PLAYBOOK sports conversation and connect tent in a big way. them with athletes and others. It’s After testing the wa - launching Stadium, a 24/7 stream ters in 2016 with a that will offer exclusive live colle - Thandful of deals that included be - giate sporting events, event high - coming the National Football lights, classic games and daily live League’s exclusive streaming studio programming. partner for the season, Twitter DOUGLAS N. M ASTERS The social media giant is also recently announced plans to AND SETH A. R OSE partnering with The Players’ launch its own 24/7 streaming Tribune to present #Verified, a video network. live show featuring athletes an - The social media giant also Douglas N. Masters is a partner at Loeb & Loeb LLP, where he litigates and swering fan questions and shar - outlined 16 new streaming initia - counsels clients primarily in intellectual property, advertising and unfair ing their insights on issues on tives that feature several signifi - competition. He is co-chair of the firm’s intellectual property protection group and and off the field. cant sports programming he can be reached at [email protected]. Seth A. Rose is a partner at the firm, Twitter’s new network and ex - partnerships. where he counsels clients on programs and initiatives in advertising, marketing, panded roster of sports pro - promotions, media, sponsorships, entertainment, branded and integrated Launched just over a decade marketing, and social media. He can be reached at [email protected]. gramming is seen as a calculated ago, in 2006, as a microblogging move to boost its number of platform where the only format users and increase advertising for posting was the 140-charac - bidding war in 2016 for the right of the 800 hours of live content revenue. Although Twitter has ter “tweet,” the San Francisco- to stream “Thursday Night Foot - streamed in the first three become an integral part of the based Twitter now has ball” NFL games. months of 2017, more than half sports experience, from must-fol - approximately 328 million users Last year also saw Twitter was sports related, with the ma - low Twitter accounts belonging around the world and offers a va - make deals to stream live, week - jority of viewers under age 25 to athletes, coaches and teams to riety of different media formats, ly games for MLB and the NHL and living outside the United fans tweeting second-screen re - included embedded video as well as well as live programming pro - States. actions and commentary during as advertising. duced by the NBA. It also Anchoring the new Twitter events, the social media platform Sports content already makes teamed up with the digital plat - network will be Bloomberg is struggling financially. up more than half of the 800 form Campus Insiders to offer Media’s 24/7 global breaking As of the end of March, Twit - hours of live content that Twitter live and on-demand coverage of news network with other news ter has approximately 328 mil - streamed in the first quarter of college sports including football, and entertainment content from lion average monthly active 2017, offering a combination of basketball, lacrosse, soccer, base - online players including Buz - users. Average daily active usage live competition and fan com - ball, volleyball, field hockey and zFeed and Vox. for the first quarter of this year mentary on one screen. swimming. On the sports front, Twitter grew 11 percent since the end of Social media industry watch - Nontraditional sports are also will be streaming WNBA regu - last year, according to Twitter’s ers say Twitter’s big push to in the mix, like the professional lar-season games for 2017 to 2017 first quarter report filed stream live sports events and e-sports organization ELeague, 2019. In addition to streaming with the Securities and Ex - other content is a bid to help which authorized Twitter to live weekly live MLB games, Twitter change Commission. shore up its flagging finances by stream its inaugural semifinals is introducing a new three-hour But revenue is down, with broadening its appeal to con - and championship video gaming weekly program featuring base - Twitter posting a net loss of sumers and video advertisers matches. ball highlights and live “look-ins” $61.6 million in the first quarter. alike. It’s also being character - Now Twitter is making an — brief views of in-progress Specifically, the filing reported ized as a move to capitalize on even bigger commitment to games. It’s also built on its exist - the social media platform’s rev - the “cord cutter” trend as con - sports. On May 1, Twitter un - ing partnership with the PGA enue fell 8 percent in the first sumers are increasingly leaving veiled plans to launch a 24/7 Tour that offers more than 70 quarter with advertising revenue cable television for more cus - streaming video network in its hours of live golf competition down 11 percent compared to the tomized and affordable options. first-ever appearance at the coverage by live-streaming 360- first quarter of last year. Twitter hasn’t been streaming NewFronts, an annual marketing degree video of the renowned is - While launching a streaming live sports events for long, but conference in New York that pre - land 17th hole at the TPC network could be game-changing the social media platform has views upcoming online program - Sawgrass course in Ponte Vedra for Twitter, it faces intense com - quickly become a force in the ming for advertisers. Beach, Fla., during The Players petition from other streamers. area. Possibly its biggest sports- Twitter outlined 16 new deals Championship in May. Earlier this year, Amazon Inc. related coup so far was beating to stream sports, news and en - Other new programming takes swooped in and outbid Twitter Amazon, Yahoo and Verizon in a tertainment content, noting that advantage of Twitter’s unique for the rights to stream the

Copyright © 2017 Law Bulletin Publishing Company. All rights reserved. Reprinted with permission from Law Bulletin Publishing Company. NFL’s “Thursday Night Football.” streaming services with the most the World Series (more than 40 some time and has lost approxi - Twitter paid $10 million for the U.S. subscribers. Gaming console million viewers). mately 7 million subscribers in 2016 rights; Amazon reportedly makers are also appealing to The list also included prime the last two years. shelled out $50 million for the sports fans by offering program - time Summer Olympics pro - In the past, one of ESPN’s 2017 rights. ming on their streaming servic - gramming, an NFL playoff game, strengths was being able to se - In May, Hulu, a subscription es, like Sony’s PlayStation Vue. an AFC wildcard playoff game cure exclusive licenses to major video on demand service formed Despite the competition, a ro - and Game 7 of the NBA finals. live sports events that are now by a joint venture of media bust lineup of streamed sports The Oscars ceremony was the being snapped up by relative heavyweights 21st Century Fox, programming could be a good bet only televised nonsports event in newcomers like Twitter. The Walt Disney Co., Comcast to help Twitter turn its fortunes the top 10. Twitter has already proven and Time Warner, unveiled its around for a number of reasons. Twitter could also benefit that when it comes to sports pro - own streaming live television Live sports events are a huge from the current cord-cutting gramming, it won’t hesitate to service. draw, no matter how they are trend that’s gaining momentum make bold moves, pursue innova - Hulu’s service offers a sub - broadcast. Nielsen reported that from the proliferation of stream - tive partnerships and take ad - stantial lineup of sports net - in 2016, nine out of the top ten ing options. At least one major vantage of consumer trends. It’s works, including ESPN and single telecasts on traditional sports cable network is hurting uncertain whether these strate - NBCSN. Competition also comes broadcast TV were sports as more consumers cut back on gies will put Twitter’s finances from sports-specific “over the events. The top three biggest au - their cable service or drop it al - back on track but the company’s top” (OTT) streaming services diences watched the Super Bowl together. ESPN laid off 100 an - new streaming initiatives are a being offered by MLB.TV, WWE (nearly 112.6 million viewers), its chors, reporters and staff clear sign that it plans to stay Network and NFL Game Pass, all post-game show (more than 70 members in April, but the sports competitive against old and new of which are among the top 10 million viewers) and Game 7 of network has been floundering for rivals.