As Hollywood Strikes Loom, Media Giants Turn to Sports to Bolster Content Slates

Key points

1. Media conglomerates dazzled advertisers with celebrity-packed Upfront presentations this year following the conclusion of Hollywood strikes. However, the repercussions of last year's work stoppage were evident in their content offerings.
2. Sports took center stage once more, with traditional media powerhouses highlighting the NBA and Summer Olympics, while Netflix made waves by revealing plans to broadcast two NFL games on Christmas Day.
3. Streaming remains a primary focus for companies, with tech giants expanding their ad-supported platforms and promoting strong upcoming content lineups.

Media giants leaned heavily on sports last year to attract advertisers during the Upfronts amid a backdrop of a Hollywood strike and cost-cutting measures impacting their content offerings and star power.

This year, despite the return of stars to the stage following the end of the strikes, presentations continued to emphasize sports over scripted shows. The aftermath of last year's work pause left some media companies with fewer series and movies to showcase during their presentations, exacerbated by cost-cutting measures implemented by companies like Disney and Warner Bros. Discovery.

Live sports retained its prominence during the Upfront meetings due to its ability to draw large audiences and attract significant advertising revenue.

Tom Rogers, Executive Chairman of Oorbit Gaming and Entertainment and former NBC Cable president, highlighted two key challenges faced by traditional media companies: the decline of traditional TV viewership and the rising costs associated with broadcasting live sports.

Rogers emphasized the need for media companies to navigate the complexities of content expenditure and profitability, noting the shift away from traditional programming formulas towards a more nuanced understanding of content's impact on financial returns.

He underscored the importance of adjusting content spending levels to align with changing market dynamics, suggesting that a reduction in entertainment programming may be necessary given constraints on content budgets.

Light on entertainment

Source: Netflix

During the Upfronts, Disney highlighted trailers for the upcoming Disney+ series “Agatha All Along” and “Daredevil: Born Again,” while for its cable network FX, it focused on the next season of the popular series “The Bear,” which also streams on Hulu. Additionally, Disney announced “Golden Bachelorette,” the next installment in the reality series on ABC.

Warner Bros. Discovery showcased series like “House of the Dragon” and “And Just Like That,” both spinoffs of HBO series.

Amy Leifer, chief advertising sales officer at DIRECTV Advertising, emphasized that a strong content slate, whether in sports or entertainment, is crucial for the modern TV experience, especially with the explosive growth of ad-supported streaming.

Some films took center stage during the Upfronts, particularly after streaming platforms like NBCUniversal’s Peacock saw success with blockbusters like “Oppenheimer.”

Comcast’s NBCUniversal highlighted the upcoming musical film “Wicked” and the renewal of Peacock original series.

The summer movie box-office season is expected to shrink by around $800 million this year due to a limited stream of blockbuster films, following a second quarter with nearly 50% lower ticket sales compared to the same period last year. However, the movie calendar is anticipated to pick up in the fourth quarter with major titles like “Joker: Folie a Deux,” “Gladiator II,” “Moana 2,” and “Wicked” hitting cinemas. Calendar years 2025 and 2026 are set to feature a significant boost in titles, including releases from major franchises like Marvel, Star Wars, Batman, and Super Mario Bros., along with rollover tickets from a third Avatar film.

Tech giants like Netflix and Amazon Prime Video, which recently introduced cheaper, ad-supported tiers to their streaming platforms, made a strong presence during Upfronts week. They showcased not only sports but also upcoming films and series.

Amazon, now owning MGM Studios, highlighted renewals and upcoming seasons of original series such as “Mr. and Mrs. Smith,” “The Boys,” and “The Summer I Turned Pretty.” Actor Jake Gyllenhaal announced a sequel to “Roadhouse,” while Will Ferrell and Reese Witherspoon discussed their film, “You’re Cordially Invited.”

Netflix announced the sequel to Adam Sandler’s “Happy Gilmore” along with a slate of other series.

‍Sports domination

During this year's Upfront presentations, the NFL continued to hold a dominant position, with tentpole sports programming like the Summer Olympics and the NBA also playing significant roles. These events attract large TV and streaming audiences, along with substantial advertising dollars.

According to Mike Dupree, chief revenue officer at Teads, live sports remains highly valued in the advertising world, as access to quality content in an on-demand environment has diminished the scarcity that historically drove the upfront model.

NBCUniversal placed considerable focus on the upcoming Summer Olympics in Paris, while the NFL featured prominently in all presentations, including Netflix's debut in the ad-supported streaming landscape. Netflix made a major sports announcement during Upfronts week by securing a deal to broadcast NFL games on Christmas Day for the next three years.

Amazon highlighted its coverage of Thursday Night Football, a second Black Friday game, and an upcoming wild card playoff game in January, marking the first ever for Prime.

Tim Hurd, vice president of media activation at Goodway Group, noted that media giants made big bets on events like "Wicked," the Olympics, and sports stars such as Jason Kelce to generate excitement. Kelce, who recently retired from the NFL, appeared at Disney's upfront to announce his role as a commentator for ESPN, making headlines with his playful antics during the event.

Sarah Whitten contributed to this article.

Source: CNBC