The pressure to finish competitions was therefore enormous.
The COVID crisis hit many parts of the media sector hard over the past year. It was no different in the field of sports rights, which involved enormous amounts. It is logical that sports organizations do everything they can to organize major tournaments such as the Olympic Games and the European Football Championship a year later: one simply cannot afford to let the enormous rights income flow once. This income forms the oxygen or perhaps also the opium for sports organizations and clubs.
It is no different in the regular competitions, especially in the field of football. Whereas in the Netherlands the media revenues still represent a relatively modest part of the turnover of the sector, this interest has grown enormously in the 5 major European countries. The pressure to finish competitions was therefore enormous. This was not possible in France, so rights holders negotiated substantial discounts on the agreed amounts. In England, Germany, Italy and Spain the competitions were still played out and the damage was not too bad.
However, the COVID specter does affect media rights: new deals appear to be significantly lower than the old ones at first glance. Initially, the flag went out in France when the amount of rights more than doubled when La Ligue (the umbrella organization of French football) switched from Canal + to the Spanish Mediapro. It soon became apparent that Mediapro could no longer afford the rights, after which La Ligue had no choice and again tendered the rights. Canal + has recaptured the rights for a fraction of the original rights amount until the end of this season. But as is the case, the French clubs had already invested on the higher amount of rights: French professional football is therefore in a major financial crisis.
It is no different in Italy. The current rights deal will expire at the end of the season and the bids from Sky Italia on the one hand and the consortium DAZN and telecom company TIM on the other still leave something to be desired. It is the first time that DAZN, which likes to advertise itself as the Netflix of the Sport, is fully bidding on the rights at the highest level. It is a break in the trend that the new rights deal seems to be closed lower than the previous one. After all, the trees of pay-TV no longer grow to the sky, foreign consumers seem to have become accustomed to lower prices for digital video.
It is extremely interesting to see what the future development of supply and demand in the sports rights market will look like. New digital players such as DAZN and Eleven Sports have entered the arena and Amazon is also participating a bit. History shows that new entrants make the current parties (usually Pay TV providers) nervous and still drive up the price for sports rights. It only takes 2 to tango and the rights holders are warm again!
Two years ago, I predicted that the MIP fairs in Cannes were doomed. After the COVID crisis, particularly the Americans and Asians struggled to find their way back to Cannes, the bunker-like Palais was half-empty, and the fair had become a depressing affair. The recent MIPCOM couldn’t have been more different: the sun was shining, exchanges with industry peers were intense, and the spirit was fully restored. Half of my earlier prediction proved accurate: the spring MIP has indeed perished. However, MIPCOM is back in full swing and is here to last.
The reason? MIPCOM is increasingly becoming a meeting place for the international media world. It’s no longer a marketplace; instead it is primarily a place to exchange ideas and uncover the latest trends. It was heartwarming to see young producers from the Benelux excelling: Rutger Beckers from Sputnik in Belgium, Jeroen Koopman from Newbe and Wouter van der Pauw from Signal.Stream. Wouter and his partner, Giel de Winter, are succeeding in reaching generations that have turned away from broadcast television. Their rapidly growing company mainly produces for streamers and recently delivered the series Het Jachtseizoen for Videoland. John de Mol often has a nose for this type of talent and was quick to acquire a stake in Signal.
Nevertheless, there was still a bit of complaining from the many producers present, regardless of where they came from. The days of "peak TV" are over: streamers have stopped making heavy marketing investments in content, and the American industry is back on track after the big strikes. This last factor mainly affects British and Australian producers, who had cleverly filled the gap in the U.S. The market has returned to square one and production volumes are back to normal levels. This brings a major advantage: consumers are no longer overwhelmed with excessive content offerings.
Naturally, much was said about the mega-changes taking place in our market. Evan Shapiro, who has made a name as a "media cartographer," offered insight into something we all knew: young people in the 16-34 age group hardly watch broadcast television anymore. This percentage has dropped further, from nearly 20% in the UK in 2022 to 14% in 2024. Social video and streaming continue to grow, and advertisers are naturally following suit. Broadcasters will have to develop their streaming activities as quickly as possible to maximize digital reach.
In this perfect storm, it’s also crucial for producers to embrace new opportunities. Young entrepreneurs like Wouter van der Pauw, Rutger Beckers, and Jeroen Koopman are eager to take advantage of these opportunities. It will be interesting to see if the large, consolidated production companies will also be able to crack the code of young viewers. That’s the challenge facing many of the MIPCOM attendees.
Taco began his career on the content-production side, at SBS, before transitioning to public broadcasting in 2009, where he led KRO. After overseeing the merger with NCRV in 2014, Taco became CEO of IDTV (part of All3media) in 2017. At IDTV, he formed a creative team that developed the hit show De Verraders. From 2021 to 2024, he led All3media’s companies in the Netherlands, Belgium, and Germany. Taco also earned his PhD in 2014, showcasing his dedication to learning and expertise.
Oege Boonstra, partner at 3Rivers, says: “We are thrilled to welcome Taco to our team. His deep expertise in both the creative and operational aspects of the media industry, combined with his strategic insight, will be invaluable to our clients. His experience in media management and talent development aligns perfectly with our mission to drive success for media companies.”
Taco Rijssemus on his new role: “I’m excited to join 3Rivers and collaborate with such a skilled team. The media landscape is constantly evolving, and I look forward to applying my experience to help our clients navigate these changes and achieve meaningful results.”
The streaming market is gradually becoming mature. There will still be significant growth, but the tumultuous numbers from the early phase are now behind us. The number of new entrants of any significant size is also drying up, so we can gradually begin to take stock: which companies will survive, which will fail, and what new developments can we still expect?
Let's start with the latter. A few years ago, it seemed that local players could only compete with the big American Tech competitors by working together intensively. In hindsight, this has not materialized at all. Initiatives like the French Salto went under, Britbox eventually became a ‘BBC only’ endeavor (ITV sold its share), we hear little about the Flemish Streamz, and NLZiet in the Netherlands is now cleverly positioned as an alternative to cable, while NPO and RTL are building their own streaming platforms.
Most broadcasters have now realized the critical importance of their brand and are eager to add a +, Play, or MAX behind their names to establish their presence in the digital world. By using the content budget both analog and digital and coming up with smart combinations, they are able to create a new future. With good technology now widely available and no longer a significant barrier, there is no doubt that local broadcasters take charge of their own digital future to survive. The latest in that lineup is Channel 5 in the United Kingdom, which is going to exploit all digital activities under one brand name, 5.
Moreover, the major international media players face significant challenges in keeping their traditional businesses afloat. The write-offs that Paramount and Warner Discovery (WBD) have taken in recent months (each amounting to nearly ten billion dollars!) speak volumes. The traditional business is increasingly under pressure, and investors see that too. For instance, WBD’s stock received a downgrade from Standard & Poor's (to negative). That must cause a lot of pain in the boardrooms.
What does all this mean for the streaming market? First of all, it means that many more local brands will survive than previously thought. All traditional broadcasters are rapidly transforming into digital media companies because they know that otherwise their days are numbered. While the number of local players increases, the number of international players will, however, shrink. The large American media companies are under immense pressure and can no longer afford the investments needed to build international streaming services.
Who will be left standing? Netflix, of course, which systematically expands its first-mover advantage. Prime Video, backed by Amazon's commercial engine. Disney, naturally, with its broad portfolio, will survive despite the painful managerial road it has traveled. And the aforementioned WBD, which continues to invest heavily in (HBO)MAX. Finally, DAZN, though it is still burning through cash. With Apple, you never know. But the other international players are not going to make it. That is certainly something few could have predicted three years ago...