Prior to establishing himself as a humorous, astute observer of human nature, comedian George Carlin had a stand-up routine in the late ’60s that included his playing a whacked-out news weatherman. "Forecast for tonight: dark," he said, providing a one-liner prediction that one could firmly rely on.
But when it comes to getting a reliable handle on the commercial production business in the year 2000, formulating an unerringly accurate, dare we hope definitive, prognostication can prove daunting. It’s been hard enough in years past just in terms of dealing with traditional television spotmaking relative to burgeoning growth in media expenditures. For several years running, ad media spending has risen steadily to record-high levels. The crystal ball view for 2000 is no different, with healthy global projections coming from McCann-Erickson Worldwide, London-based Zenith Media and New York-headquartered investment bank Veronis, Suhler & Associates.
For example, Robert J. Coen, senior VP/forecasting director at Universal McCann, New York-the media services division of McCann Worldwide-predicts that marketers will spend a record $233 billion on ad media in the U.S. this year, an increase of 8.3 percent as compared to ’99. Overseas in 2000, Coen foresees ad spending of $231.4 billion, up seven percent from ’99. Coen’s estimated worldwide total for 2000 is a $464.4 billion.
Zenith Media-which deploys different methodology than McCann-offers a similarly glowing report, predicting worldwide ad spending of $319.1 billion this year, a 6.5 percent hike over ’99. Driving the global surge, said John Perriss, chairman/chief exec at Zenith, is the U.S. economy, which accounts for more than 40 percent of the world’s ad media expenditures. He cited the country’s consumer boom and its "incredible" growth in dot-com ad spending.
However, over the past couple of years, a strong economy and media spending prosperity have not translated into commensurate growth for many commercial production companies. In ’98, for instance, assorted houses reported declines in business, with severely prolonged slow spells. And while the overall picture in ’99 improved somewhat, there are still many production companies being squeezed. This is due in part to the sheer number of houses and directors out there. Immediate concerns for the production community in 2000 include the ubiquitous tighter margins, increased competition, the high cost of procuring and developing directorial talent, and uncertainty over upcoming negotiations for a new actors’ spot contract. Add to this the confusion about how emerging ad media (i.e. the Internet, enhanced television) will shake out.
At the same time, new media represent opportunities for content providers-and production houses are mulling over how to best plug into and capitalize on the evolving ad landscape. Also cause for optimism is the fact that this is both an Olympics and an election year, stimuli which have traditionally helped boost spotmaking prospects.A SHOOT STAFF REPORT
Endeavor Group Sells Professional Bull Riders, On Location and IMG To Parent of WWE and UFC
The parent company of WWE and UFC is buying Professional Bull Riders, On Location, and IMG from Endeavor Group in an all-stock deal valued at $3.25 billion.
The deal is part of Endeavor's efforts to shed some of its assets as it looks to be taken private in a proposed transaction with private equity firm Silver Lake, which was announced in April. Ariel Emanuel, who serves as CEO of Endeavor, is also executive chair and CEO of TKO.
Professional Bull Riders is a bull riding league that has more than 200 annual live events, approximately 1.25 million fans, and reaches more than 285 million households in more than 65 territories. On Location is live event company for more than 1,200 sporting events, such as the Super Bowl, Ryder Cup and NCAA Final Four. IMG is a distributor and producer of sports content, packages and sells media rights and brand partnerships, and provides consulting, digital services and event management to clients such as the National Football League and National Hockey League.
Parent company TKO Group said Thursday that the acquisition from Endeavor Group will complement its existing businesses as well as broaden its reach in the premium sports market.
"PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO's portfolio and strengthen our position in premium sports globally," TKO Chief Operating Officer Mark Shapiro said in a statement. "Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees."
As part of the deal, Endeavor will receive about 26.14 million common units of TKO... Read More