iWorld
VoD broadcast primetime viewing sees 22% growth
MUMBAI: The total time spent on viewing Free on Demand (FOD) television content in the Broadcast Primetime category increased 22 per cent compared to the previous year, with 32.8 million more hours per month watched in Q1 2015 than two years ago.
A report titled ‘State of VOD: Trend Report’ by Rentrak includes two years Video on Demand analysis and year-to-date metrics from Rentrak’s On Demand Essentials measurement service. Since Rentrak started issuing the report five years ago, findings show that time spent watching Broadcast Primetime on Demand has doubled.
Insights from the Rentrak report include:
Free on Demand (Broadcast Primetime): Transactions are up 19.8 per cent
Free on Demand (Cable Series Content): Transactions are up 8.2 per cent
The majority of primetime viewing On Demand happens after day three, with more than 50 per cent occurring day seven and beyond.
“Much has been written about the movement from TV to digital viewing, however, Rentrak shows that while live TV viewing is slightly down, television viewership is largely unchanged as more viewership is occurring on DVR and VOD over 28 days,” said Rentrak corporate president Cathy Hetzel.
“With 100 per cent of all primetime series shows now available on VOD, consumers know that favourite shows will be available when they want to watch. The water cooler effect is also driving higher usage as consumers now have the opportunity to watch shows they hear about, from the first episode on,” Hetzel added.
“It is no surprise that Free on Demand continues to see growth. On Demand is truly the ultimate engagement medium. No commercial avoidance for primetime content available on FOD makes On Demand one of the most effective platforms on which to target your most desirable consumers. Our recent ‘Report’ proves that VOD advertising should be sold at a premium price,” said Rentrak CEO and vice chairman Bill Livek.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
