In this week’s column, California Sports Lawyer® CEO, Founder, and Managing Attorney Jeremy M. Evans writes about the changing landscape in entertainment and sports content consolidation, forgoing competition for coordination and the need for great dealmaking.
[D]eals would have to and are increasingly drafted from a multi-platform, joint-use standpoint with some coordination for joint-facilities and shared branding.
You can read the full column below. (Past columns can be found, here).
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Content companies are looking for ways to reach more customers. This can be accomplished through having (1) innovation and better content than the next platform, (2) consolidation and convergence, or (3) mergers and acquisitions. Streaming film, entertainment, and music platforms have tried many strategies and more specifically with licensing and creation of great content that is more popular than the next platform or by simply purchasing a competitor.
The consolidation and convergence of rights is a newer strategy that is allowing for the collaboration between competitors to deliver a superior product to consumers, but potentially signals antitrust law violations if there is collusion. However, a partnership on distribution is not necessarily an antitrust violation. The ESPN and new Fox One bundle will provide all of the content of both platforms on one new platform entitled ESPN-Fox One. The move follows ESPN’s recent takeover of the NFL’s office lease at SoFi Stadium where the Rams and Chargers play in Inglewood, California.
Consolidation and convergence has the potential to blur the lines between competitors, partners, and rights holders. Again, antitrust questions are raised when major players collaborate rather than compete with each other. From a contractual standpoint, deals would have to and are increasingly drafted from a multi-platform, joint-use standpoint with some coordination for joint-facilities and shared branding. There will be questions of liability, responsibility, cost, and profit, not to mention content licensing being secured to place on multiple platforms.
The Skydance and Paramount deal represents the traditional merger or acquisition strategy that will help Skydance owned-CBS promote more sports content. A new billion-dollar deal has been signed with UFC and the July 4, 2026, match at the White House in Washington, D.C. celebrating the 250th Anniversary of America is going to likely break viewership records.
Innovation is also another essential strategy for content providers. A bundle is one option, the more complex ESPN-Fox One partnership is another, but there are more examples of innovation. Sling TV will be offering a day/weekend pass to allow customers to view content in a limited window for specific programming (like HBO Sports or Pay-Per-View, but extended over more time and content options). Roku will be offering an ultra-low-price advertisement-free service named “Howdy” that will use the strategy of a smaller library of content (less expensive to license) with no commercials for a lower price to customers. Interestingly, AMC Theaters will be showing fewer commercials prior to the feature film as customers continue to head back to theaters (more movie tickets being sold means less need for advertising; customers also complained of too many commercials). Innovation could also mean companies like Kevin Durant’s Boardroom choosing to add a print option for their magazine as opposed to the world of digital everything.
The various strategies provide for new opportunities, but also challenges to contracting that may include complex rights carve-outs, sublicensing, and a need for global distribution on multiple platforms. These strategies also highlight the importance of intellectual property (IP) as a saleable and controllable asset. The issue for content companies in the regulatory framework of antitrust, customer data, privacy, liability, and more will force a deepened importance on good contract drafting, but also a keen eye for avoiding problems and solving problems when they happen.
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About Jeremy M. Evans:
Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.
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