Hello again after a little summer hiatus! I want to introduce Soren, author of Pillars and Profits, a newsletter focused on Soren’s own investment theses. Soren and I connected over the summer to discuss market movements around the streaming space. As a follow up to our discussions, we came up with the Alternative Streaming Index … more below
Some thoughts on the media & entertainment business … if you were forwarded this email and want to receive regular updates, click here:
The Alternative Streaming Index
There is plenty of coverage on the big players like Disney, Netflix, and Warner Bros Discovery. In an effort to niche down the space, we wanted to look at 10 companies that are tangential to the streaming space and what we call the Alternative Streaming Index (ASI 10). We thought it would be interesting to track this basket of companies vs. the majors (The Big 5) and double click on interesting highlights.
Recent Updates:
Liberty Formula One (NASDAQ: FWONK) Audi recently announced it will be entering as a constructor starting in 2026. This is the third team to announce they are joining the sport after Porsche and Andretti. It’s a nice win for Formula One as it increases team fees and appeals to more fans. Porsche is very popular in endurance and FormulaE Racing and Andretti is very popular in IndyCar where former F1 driver Romain Grosjean races.
Spotify (NYSE: SPOT) recently launched sponsorship deal with Barca Football Club where Spotify becomes the title partner for shirts and stadium and official audio streaming partner. Streaming companies generally do not do sponsorship deals. However, this marketing strategy creates interesting value because it is specifically sports, an area with mass patronage and high stickiness. Spotify is investing a lot to increase its global brand.
Walmart Inc (NYSE: WMT) could be a potential add to the Alternative Streaming Index…but probably not. Walmart+ (a loyalty program) will now have a Paramount+ subscription included (I wonder what the wholesale rate on that deal was…our guess is Paramount+ basically gave it away for free). Here’s one more sign that we are entering a refreshed age of bundling. Walmart+ also includes a 6-month Spotify subscription as well as 2 day shipping and they do it all for $12.95 per month. For reference, Amazon’s Prime costs $14.99 per month.
Until next month,
Soren
What We’re Streaming…
Who isn’t?