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Firm Updates

http://mccaffertyco.com/industry-intelligence/

McCafferty & Company Launches Research Initiative

In January 2015, McCafferty & Company launched its original research initiative by welcoming a dedicated research team.  The firm's research efforts are one way McCafferty & Co delivers key insights into areas at the forefront of the tech and media landscapes.  
 
With industry expertise in the multi channel network (MCN) ecosystem through transactions including the sale of Rooster Teeth to Fullscreen, the sale of  Broadband TV to RTL Group, and the sale of StyleHaul to RTL Group, McCafferty & Co is now making its YouTube primer available for public download.

McCafferty & Company Releases Gaming Primer

April 2015: McCafferty & Company announces the launch of its industry primer on the video game market.  The report reveals a dramatic shift in the way video games are distributed and consumed with a burgeoning mobile gamer market and a core following of console gamers. The report is available for public download on the McCafferty & Co. website. 

McCafferty & Company Launches New Website

March 2015: Speaking at the South by Southwest (SXSW) 2015 panel YouTube and You, managing director Colin McCafferty announced the official launch of the new McCafferty & Company website.  Designed by Los Angeles based Modus Operandi, the new website will serve as the digital face of McCafferty & Company and as a distribution platform for its news and research.

Visit the new website

Transaction Announcements

Growth in the US Live Music Market Coincides with Native American Tribe’s Investment in Indie Music Festival Producer, Danny Wimmer Presents (DWP)

Danny Wimmer Presents (DWP) Completes Capital Raise 

Growth in the US Live Music Market Coincides with Native American Tribe’s Investment in Indie Music Festival Producer, DWP

The rising demand for live music events has drawn attention from unlikely investors: The United Auburn Indian Community (UAIC), a federally recognized Indian tribe located in the Sierra Nevada foothills of California.  In January of 2015, the UAIC finalized negotiations to purchase an equity stake in one of the nation’s largest producers of destination rock music festivals, Danny Wimmer Presents. …

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YouTube Network Giant Fullscreen Broadens Audience and Portfolio with the Acquisition of Online Video Producer Rooster Teeth Productions

Fullscreen Acquires Rooster Teeth: McCafferty & Company, sole sell side advisor

YouTube Network Giant Fullscreen Broadens Audience and Portfolio with the Acquisition of Online Video Producer Rooster Teeth Productions

One of YouTube’s biggest networks just got bigger. At the close of 2014, Fullscreen completed its purchase of the online production studio, Rooster Teeth. The acquisition provides Fullscreen with another avenue to reach the highly coveted and rapidly expanding bracket of 18-34 year olds who watch videos online. According to Statista, the 18-34 year old age group has consistently watched …

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Important Industry News

Top Developments Influencing Tech & Media 

Media & Technology M&A  Volume Falls Despite Increased Activity

Year-over-year, overall deal volume in the media and technology space declined 70.8% from $224.5mm to $65.6mm in the first quarter(1). This is largely a result of the mega-mergers announced in 2014, including Charter’s  $61.3bn bid for Time Warner Cable. However, total deal count increased by 8.4% over that same time period from 1,018 to 1,103 deals announced or closed(1). This may signal the market is shifting away from large deals as key media and technology players look to solidify their strategies and plug critical holes over the next year.

(1) Bloomberg

Net Neutrality Rules Greeted by Opposition

On February 26, the Federal Communications Commission announced rules for an Open Internet, commonly referred to as Net Neutrality.  The rules, which prohibit preferential treatment online, are being challenged by the industry’s largest Internet service providers (ISPs).

Facebook Video Continues to Grow

According to data released by comScore, monthly Facebook video views in the United States grew 113% from 5 bn in January 2014 to 10.6 bn in January 2015 while YouTube views declined 10% during the same period from 15.5 bn monthly views to 13.9 bn monthly views, threatening the video giant’s dominance in online digital video.  Read more

Digital Continues Gains Against Traditional Media

According to research released by Magna Global, digital ad spend continues to attract market share against traditional media, claiming 30% of the 2014 US ad market.  Digital video contributed strongly to these gains with 39% growth over the period.  Magna global predicts that digital media ad spend will reach parity with TV ad spend by 2016.

Mobile Advertising Spend to Exceed Desktop in Key Categories

2015 represents a landmark year for mobile advertising.  According to research released by eMarketer, mobile ad spending will exceed desktop spending in two key categories, search and display, for the first time ever.  In the search category, eMarketer anticipates advertiser spend will grow to $31bn by 2017, of which 70% will be mobile and 30% will be on desktop devices.  In the display category, eMarketer forecasts advertiser spend will grow to $37bn during the same period, with mobile accounting for 69% of ad spend.

Proposed Comcast – Time Warner Merger Stalls

The merger of Time Warner and Comcast, originally proposed in 2014, continues to stall as management seeks regulatory approval.  The cable giants argue that scale is needed to succeed against competitors with a national footprint, including Verizon, Apple, Netflix, and Google.  Regulators worry that the merger will stifle competition in the cable industry, leading to increased consumer prices.  Read more

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