How sportsbooks are placing bigger bets on sports media outlets

In this week’s Media Briefing, media editor Kayleigh Barber looks at how sports betting companies are pushing more money to publishers.

Sportsbooking revenues

The key points:

  • Since the landmark 2018 legal decision, sports betting companies have been pouring money into publishers.
  • Blue Wire Podcasts provides an example of how one media company has taken sportsbooks’ media interest to the bank.
  • Some sportsbooks work with publishers, while others are looking to be publishers.
  • The online sports betting industry has become a significant win for sports publishers over the past three years — particularly for one media startup with a deal with a single sportsbook that represents its largest revenue source. 

    That’s the case for three-year-old Blue Wire Podcasts, a media company that publishes 170 sports and sports-adjacent podcasts, which was founded just three months after the U.S. Supreme Court, in May 2018, A 1992 federal law was struck downThat made sports betting illegal in most of the states. 

    Blue Wire now reaps the benefits of that ruling just over two-and a half years later. The podcast publisher signed a three-year-long deal with WynnBET that has already led to a $3.5 million investment in the media company in exchange for partial ownership, at least $1 million in advertising revenue and a multimillion-dollar recording studio built at the Wynn Las Vegas that opened in early September, according to Blue Wire’s founder and CEO Kevin Jones.

    “The partnership with WynnBET has been rocket fuel for Blue Wire,”Jones said Jones that Jones had been approached by the sportsbook in January and that within a month, the deal was inked. 

    Blue Wire’s deal is an exclusive partnership with WynnBET, meaning the media company cannot work with other sports betting companies on partnerships. The deal also guarantees an amount of revenue for ads, and Blue Wire will produce a few podcasts to WynnBET. 

    Jones declined to share exactly how much money Blue Wire earns from this category, but he said that sports betting has become the company’s largest revenue stream since it was founded three years ago. 

    Sportsbooks as patrons

    Online sportsbooks have grown in popularity in about a dozen states after the May 2018 ruling. They are quickly gaining a large customer base and are becoming lucrative. Ark Invest, an investment management company, estimated that online sports betting would become a popular option. Market Value: $9.5 billionThis year, it will reach $37 trillion in 2025. There is money to be made — and spent — in sports betting. 

    Within one year, media companies had reopened after the overturn. The rewards are yoursPartnerships with sportsbooks often lead to complex content partnerships that include a brand show or physical space. These partnerships can be seven- to 10 figure deals. In February 2019, Turner Sports closed a content partnership deal with Caesars Entertainment that included founding a Bleacher Report studio within the casino operator’s Las Vegas resort. Plus, this August. ESPN began its search for a multi-year licensing partner who is willing to pay upwards of $3 billion — indicating this industry’s growth in just a few years. 

    Jones stated that Blue Wire had made entertaining deals with other sportsbooks. “other players who are more established, like FanDuel or DraftKings, already have a lot of things set up. We like being the upstart with WynnBET and they’ve tapped us as more than just content producers. We’re a media arm; we help them make decisions,”He said.

    Publishers of sportsbooks

    Sportsbooks themselves are investing so heavily in these media partnerships, in part because of the corresponding brand marketing opportunity — filling the funnel of potential betters with known sports fans — but also because there is a big push from these companies wanting to become media companies in their own right. 

    DraftKings has built several media partnerships with publishers over the years, including a deal with Vox Media’s SB Nation to Create a website dedicated to your project for the company’s sports betting content called DraftKings Nation. From a brand awareness perspective, it is attractive to get media sites to publish data on sports and detail the odds of a particular game. 

    “One of our major intents is actually [to] be our own publisher, if you will, and be the one that is providing perspective in those categories around information, analysis, conversation, and culture,”Brian Angiolet is the CMO at DraftKings. — Kayleigh Barber

    What we’ve heard

    “In my mind, follower count is not necessarily a valuable metric on TikTok, especially because of the ‘For You’ page.”

    — Media executive

    According to a new report published by the Interactive Advertising Bureau every four years, since 2008, there has been a boom in digital entertainment, news, and information jobs. 

    According to the Internet, more than half of all U.S. employment in the media and advertising industries is now connected to the internet. The Economic Impact of the Market-Making InternetIt serves to “quantify the impact of the internet on the U.S. economy,”David Cohen, IAB CEO, said during a live presentation on Wednesday. It’s worth noting that, considering the report covers up to 2020, it may not necessarily reflect the full impact of the pandemic on internet-related media jobs.

    The number of people employed in news and information-related publishing tripled between 2008 and 2020 to more than 142,000 people — three times the 46,000 people employed in 2008 and 73% more than in 2016. “The growth and acceleration since 2016 has been absolutely staggering,” Cohen said.

    The report broke down the number of U.S. internet employees — or someone whose job is either entirely or partially dependent on the internet — in 2020. The breakdowns by company included digital publishers, large legacy news and information organizations, and what the IAB calls “digital publishers”. “multi-genre and multi-platform”Organizations or companies that “have their roots” in non-digital media but now have web, podcasting, mobile and subscription and/or advertising-supported streaming channels (which would seem to include a lot of large news organizations, but we didn’t create the list). Here’s a sample of media companies included in the report.

    Large news agencies:

  • Bloomberg: 12,600
  • News Corp: 5,552
  • Fox Corp.: 4,864
  • Thomson Reuters: 2,726
  • Gannett: 2,068
  • The New York Times: 1,500
  • The Washington Post: 1,000 
  • Digital publishers

  • Red Ventures: 2,520
  • Vice Media Group: 2,046
  • Vox Media: 865
  • BuzzFeed: 827
  • Penske Media Corp: 719
  • Leaf Group: 346
  • Insider: 200
  • ”Multi-genre and multi-platform” organizations:

  • Advance Publications (Condé Nast, Reddit): 12,950
  • Disney: 12,500
  • Hearst: 10,800
  • ViacomCBS: 7,677
  • IAC: 5,665
  • Meredith: 1,743
  • Univision: 1,040
  • Tribune Media: 731
  • According to the report, there were 34,000 people working in digital gaming, streaming video, and podcasting in 2020. 

    It’s not just the IAB that has recorded an uptick in media jobs recently. Indeed saw a 37% rise in job postings for journalism jobs between September 2020 and Sept 2021 (per 1,000,000 job posts). According to LinkedIn’s Monthly Workforce ReportThe September 2020 to September 2021 hiring rate for media and communications industry was 46% higher than it was in September 2020. — Sara Guaglione

    Numbers to Know

    54% Percentage share of Twitter’s U.S. employees in leadership roles — director-level positions or higher — who are white.

    72% Percentage share of WarnerMedia’s senior executives — employees in vp positions or higher — who are white.

    20 Number of journalists that The Associated Press plans to employ for a new climate reporting outfit it plans to form.

    $725 Million: The valuation of LeBron James’ media company SpringHill after its latest investment round.

    30% Percentage share of overall Facebook referral traffic that is coming from the Facebook News tab for U.S., U.K. and German publishers whose articles are included in the tab.

    3 questions with them’s Sarah Burke

    Sarah Burke would seem to be an ideal candidate to oversee an identity-focused publication like Condé Nast’s them, which is oriented around the LBGTQ community. “Identity has been a through-line in my work and particularly LGBTQ rights and issues,”Burke said. She worked most recently on a project for Vice. Documentary series about transgender rights called “Transnational”This premiered June, and now she is continuing her identity work as them’s editor-in-chief.

    At them, Burke is looking to build on the outlet’s track record of covering topics and issues pertinent to LGBTQ people who “are still often very skeptical of media and, unfortunately, that is very warranted,”She agreed. She continued, “them has really stood out to me as this platform that has built an incredible amount of trust with its readers in terms of proving that not only is this a site that is for and by LGBTQ people but that there’s real care and intentionality behind the work.”

    Two weeks into her tenure, Burke spoke to Digiday about her ambitions for this outlet, which include more original reporting and pushing into the video realm.

    The interview was edited for clarity and length. — Tim Peterson

    When companies are hiring a new leader, they’re often looking for someone with ideas of how to evolve an organization. What’s your vision for the future of them and how you want to grow the publication?

    One aspect is original reporting. This does not mean more international news coverage or larger investigations. I want readers to continue to believe that we offer real, rigorous coverage. I also want to deepen that rigor. On the other, I think we all require a little more joy. So I also want to counter that with a lot of focus on just the things that we’re really excited about. In terms of my work and my role as EIC for this site, I believe that LGBTQ people have been at the forefront social change. fashion trends, of the shifts in the ways that Americans think about themselves — all kinds of Americans, both historically and currently. So I see the site’s mission as providing a record of that.

    Are there any specific topics or issues that you’re planning to grow the coverage of or any specific desks that you’re looking to form?

    I don’t want to get too in the weeds on it yet. I can only say that we want to continue building on the existing pillars. These are news, culture and health, as well as style. For news, that means bringing more international coverage. We want more videos in culture. We want to be utilizing the Condé Nast infrastructure a little bit more, bringing in more LGBTQ talent that our audience loves, doing bigger shoots, et cetera. 

    You mentioned platforms in your announcement of your hiring. Which platforms are you interested in?

    What’s expected. Social video, for instance, is something that we’ll be rolling out really soon. We’re going to revive the YouTube [channel]Move into live events when it is safe and appropriate. And my most recent project was doing a docu-series about trans rights around the world, and I’m really interested in moving into maybe we’re making documentaries, maybe we’re making TV shows. Right now I’m really focused on the site, but platform-wise I’m really open. There are so many options.

    What we’ve covered

    Dow Jones expands Twitter’s ad revenue-sharing agreement to include more properties and for longer periods

  • The News Corp-owned media company is extending its participation in Twitter’s Amplify program by two more years.
  • Dow Jones is also expanding the deal to more of its properties, including Barron’s, MarketWatch and Investor’s Business Daily.
  • Find out more about Dow Jones or Twitter Here.

    NBCUniversal News Group’s Chris Berend explains how streaming has become the centerpiece of the organization’s video strategy:

  • The Comcast-owned news organization’s digital arm has roughly doubled its staff size this year to build up its streaming operation.
  • Streaming has become the centerpiece of NBCUniversal News Group’s video strategy, with short-form video outlets serving as spokes to syndicate programming.
  • Listen to the Digiday Podcast Episode 62 Here.

    Publisher and agency executives scrutinize email-based universal IDs as the third-party cookie’s long-term heir apparent:

  • The email address might not be as reliable as it seems.
  • It may also be too invasive a signal for identity to meet privacy regulators’ approval.
  • Learn more about email-based universal identifications Here.

    A Q&A with The Washington Post’s Krissah Thompson on the outlet’s growing climate coverage:

  • The Post’s climate team has doubled in size since 2018 to 13 employees, including 10 reporters.
  • The news outlet plans to have a dozen people covering next month’s COP26 climate change conference.
  • Learn more about The Washington Post Here.

    Axios’ eight-month-old software licensing company has brought in $1 million in revenue.

  • Axios is expecting to record $1.5 Million from Axios headquarters by the end 2021 with 30 clients.
  • The company has also brought in $2 million more from its professional services offerings.
  • Learn more about Axios Here.

    What we’re reading

    The controversy surrounding Axel Springer
    Axel Springer waited to fire an editor at the center of a sexual harassment investigation until The New York Times published its own investigation into the German media conglomerate’s workplace issues as well as its handling of acquisition talks with Axios and Politico.

    G/O Media’s editorial employees opt not to return to the office:
    G/O Media demanded that employees return to the office on Oct. 18. However, the first day back saw a lot editorial staff absent from the New York office. Daily Beast reported. The media company and its editorial staff have been in a standoff over G/O Media’s office return plans. The company claimed that remote workers were less productive, but employees denied this claim.

    News outlets are reluctant to share diversity stories:
    News Leaders Association, a trade group for journalism, has asked news organizations to complete a survey about diversity in their staffs. However, it was not receiving enough responses to the deadline, according to Associated Press. Although the organization set a goal of 5,900 newsrooms participating, less than 250 outlets have so far participated.

    How Alden Global Capital has affected local news:
    Alden Global Capital has established a history of acquiring local newspapers and cutting costs while weakening the outlets’ value to readers, according to The Atlantic. The hedge fund has done this most recently with Chicago Tribune, but the starkest example may be its handling of Vallejo Times-Herald, which it eventually left with a single news reporter on staff who covered local government, schools, hospitals, police, courts and businesses — i.e. the core of a local newspaper’s coverage.

    Rolling Stone wants to reinvent itself
    According to The Washington Post, more than two years after Penske Media Corporation acquired full ownership of Rolling Stone’s music-and-culture magazine, the publication is seeking to reaffirm itself as a journalist outlet. Former Daily Beast editor-in-chief Noah Shachtman is now overseeing Rolling Stone’s newsroom and is looking to produce reporting that uncovers the dark side of the entertainment industry and popular culture.

    Source link

    Leave a Reply

    Your email address will not be published.