Super Bowl on Paramount and X's WWE Partnership | Bloomberg Technology

11 Feb 2024 (10 months ago)

Tech Sector Performance and Concerns

The Nasdaq outperformed other benchmarks due to easing concerns about inflationary pressures.
Pinterest missed sales targets but experienced topline growth and active user growth.
Pinterest announced a deal with Google, leading to a recovery in after-hours trading.
Affirm lowered its transaction volume forecast for the year, causing concerns among investors.
Valuations in the tech sector are considered top-heavy, driven by the fear of missing out on technological advancements.
The sensitivity of the tech sector to interest rates and valuations is a concern for investors.
Economic data suggests that the dovish tilt taken by the Fed in December may have reignited the economy, posing a risk of rekindling inflation.

Paramount CEO Bob Bakish discusses the success of the NFL on CBS and the upcoming Super Bowl.
Bakish highlights the technological advancements that allow for real-time graphics and enhancements during the Super Bowl broadcast.
Paramount Plus offers a broad range of content, including news, sports, and entertainment, with 90% of sports viewers engaging with non-sports programming.
Bakish emphasizes the importance of a broad product offering rather than a sports-only streaming service.
CBS set a record for viewership since 1998 during the NFL season, with the Divisional Playoff Game setting an all-time record.
The Super Bowl is the biggest event in the world and is a significant showcase for Paramount Global.
Paramount Plus will be heavily promoted during the Super Bowl weekend, including advertising for Pluto, Paramount Plus, and the Bob Marley movie.
Paramount Global is focused on shareholder value creation through execution, driving Paramount Plus, elongating earnings in the traditional media sector, and opening movies.
The company is also exploring other options, including transactional ones, as it recognizes its value in terms of content and libraries.
Paramount Plus continues to grow and has the most net adds of any streaming service since its launch.
The company expects 2022 to be its peak streaming investment year, indicating progress towards profitability.

X is launching a weekly series with the WWE, capitalizing on the significant interest in wrestling content with 59 billion impressions last year.
X is launching a new content business with original programming, including news, entertainment, fashion, sports, and wrestling.
The company has partnerships with 1000 publishers and content creators to build out its content library.
X expects to become profitable in the next couple of years through advertising revenue and subscriptions.
The company is targeting an audience that is vibrant and waiting for new content.
X has recently aired an interview with Vladimir Putin, which was published on its platform and also found on YouTube.
The interview generated discussion about the nature of the internet and the norms of American discourse.
There is a lack of transparency regarding viewership data on older platforms like websites, making it difficult to assess the reach and impact of content.
Jennifer Grygiel, a professor of communications at Syracuse University, discussed the significance of Elon Musk's interview with Vladimir Putin on X.
The two-hour interview provided unfettered information and sparked discussions on social media platforms.
The attention span of viewers on social media platforms is limited to shorter clips or very long content.
The interview highlighted the power of Musk's platform in providing access to information that is not usually available in the United States.

Google Trends searches for the Super Bowl teams, Usher's hit single, and the Taylor Swift-Travis Kelce romance have skyrocketed.
Tech companies like Snapple and Uber are releasing Super Bowl ads to promote their platforms and services.
Fanduel CEO Amy Howe anticipates a record-breaking number of bets for the Super Bowl, with over 600 different markets available for betting.
The Super Bowl serves as a significant acquisition moment for sports betting platforms, attracting new users who are exposed to the excitement of the game within the game.
Fanduel CEO Amy Howe reports that 33% of new activations on their platform are women, demonstrating the platform's broad appeal.
The legalization of sports betting in the United States has attracted a younger audience, but as the industry matures, a broader range of users, including older generations, are participating.
Partnerships with the NFL and NBA have helped make sports betting more accessible and exciting, with most bettors wagering less than $20 on the platform.
The presence of celebrities like Taylor Swift at sporting events has generated significant betting activity, particularly on player prop bets related to Travis Kelce.