Key insights
- The competitive streaming landscape has disrupted traditional media, presenting both opportunities and challenges for media developers, who may benefit from government tax incentives.
- Live Nation has reported a record-breaking year driven by the return of live events and strategic investments, but Ticketmaster's dynamic pricing model, while boosting revenue, has faced criticism.
- The introduction of name, image, and likeness (NIL) rights has revolutionized college sports by allowing athletes to monetize their personal brands, leading to significant financial opportunities and regulatory requirements.
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The media, entertainment, and sports industry is undergoing significant transformations driven by technological advancements, changing consumer preferences, and evolving business models.
Explore key trends shaping the industry, including the competition among streaming services, the impact of dynamic pricing by Ticketmaster, Live Nation's record-breaking year, and the influence of name, image, and likeness (NIL) in sports.
Streaming services competition and impact on media developers
The streaming landscape has become increasingly competitive, with major players like Netflix, Disney+, Amazon Prime Video, ParamountPlus, Apple TV+, and Max vying for market share. Streaming services are investing heavily in original content to attract and retain subscribers. This has led to a surge in high-quality productions, benefiting media developers and content creators.
To differentiate themselves, platforms are diversifying their content libraries, including international shows, niche genres, and exclusive deals with renowned creators. The rise of streaming has disrupted traditional media channels, leading to a decline in cable TV subscriptions and a shift in advertising revenues.
While opportunities abound, media developers face challenges such as increased production costs, adopting artificial intelligence, the need for continuous innovation, and the pressure to deliver popular content.
Fortunately, governments continue to release tax incentives to attract media companies. For example, New Jersey’s incentive modifications not only attract film and TV production to the state, but they also encourage the development of infrastructure, including Netflix’s $900 million production facility at the former Fort Monmouth Army base, which helped generate new business opportunities for local consulting firms.
Live Nation's record-breaking year and Ticketmaster’s dynamic pricing
Live Nation, the parent company of Ticketmaster, has reported another record-breaking year. The return of live events post-pandemic has driven unprecedented demand, with fans eager to attend concerts, festivals, and sports events. Live Nation's diversified portfolio, including ticket sales, sponsorships, and artist management, has contributed to robust financial performance. The company is optimistic about sustained growth, driven by strategic investments in new venues, technology, and global expansion.
However, Ticketmaster's dynamic pricing model — which adjusts ticket prices based on demand — has been a double-edged sword for the live entertainment industry. Dynamic pricing allows Ticketmaster and event organizers to attempt to increase revenue by capitalizing on high demand for popular events.
This model has faced criticism for making tickets unaffordable for average fans, leading to negative publicity and calls for regulatory scrutiny. Australia has announced plans to ban dynamic ticket pricing.
In some cases, high ticket prices have resulted in lower-than-expected sales, forcing organizers to cancel events. Some performers have taken matters in their own hands such as Oasis, who cancelled more than 50,000 tickets sold on resale websites for their upcoming U.K. reunion tour. This highlights the delicate balance between pricing strategies and consumer satisfaction.
NIL in sports
The introduction of name, image, and likeness (NIL) rights for college athletes has revolutionized the sports industry. NIL allows college athletes to monetize their personal brand through endorsements, sponsorships, and social media, providing financial opportunities previously unavailable.
Schools with strong marketing programs and large fan bases are leveraging NIL to attract top talent, reshaping the competitive landscape of college sports. The NCAA adopted rules permitting institutions to provide assistance and services for student athletes pursuing NIL opportunities and those student athletes are required to disclose to their university any deals more than $600 to be maintained in a database. NIL collectives have been established by boosters and fans of a university’s athletic program to develop and fund or otherwise facilitate NIL deals for student athletes.
Students may be filing tax returns for the first time, and some students earned more than a million dollars in 2024 from the NIL deals. NIL is expected to have lasting effects on athlete development, career trajectories, and the overall commercialization of college sports.
How CLA can help the media, entertainment, and sports industry
You’ve worked hard to build your success. We can help alleviate the burden of handling daily financial affairs for a wide variety of clients, including actors, writers, producers, directors, musicians, artists, athletes, as well as executives, other professionals, and high net worth individuals. We assist a variety of client types, including marketing, media, entertainment, and advertising agencies with tax compliance and tax incentives.
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