$127m or $1b? The billion dollar BVOD ambition question
Ben Shepherd argues that BVOD is currently undersold, with networks leaving $473m on the table in unrealised revenue. $1bn per annum is achievable in the next two years, he says, and that needs to be the goal.
The TV industry released its revenue numbers this week for the 2019 financial year.
The figure that grabbed my attention was the broadcast video on demand revenue figure for the same period.
I would suggest the billion dollar question is if Mr Shepherd is still the Chief Media Officer at CHE Proximity. The rumour mill is in overdrive.
The only acceptable ‘disruptive’ price point for having to stream ‘disruptive’ advertising on STAN is $0.
Disney would surely want Stan rebranded as Hulu, so it’d make more sense to just completely buy the company. Disney has enough of a bankroll to enter into this market and slowly chip away at Stan (though it would take time with rights), so surely it’d be a better play for Nine to just sell a majority stake of Stan to Disney (for a healthy premium). Keep a minority stake and then sell it to Disney later down the road when it’s even more valuable. There isn’t enough space for too many streaming options; Nine should maximise their exit now, when they have significant leverage over Disney.
Will Ben ever stop talking about BVOD?
Sure Stan is Nine’s $800 million asset, but in the wake of the Disney + pricing announcement, Nine’s $400 million dollar asset might have trouble maintaining that $100 million valuation.