Last Week Today: August 9 – August 15, 2021 Sponsorship News
This is part of our "Last Week Today" series that includes a weekly roundup of the past week's most exciting and industry-altering news. Check back on our blog every week for updates! These stories cover sponsorship news for August 9 – August 15, 2021.
Media Network Misses the Mark
With the rights to the Olympics through 2032, NBC is already renegotiating agreements with current media sponsors in the wake of the 2021 Summer games that saw its viewership drop to 50% less than the 2012 Summer games in London. A lot of factors have gone into what NBC is hoping will be a standalone issue and not a trend for future Winter and Summer games. In the meantime, many current advertisers are getting discounted advertising for future Olympics as well as the upcoming Super Bowl, in an effort to continue long-term investment in NBC sports broadcasting.
In a year that saw the rise of in-home bikes and gym classes through subscription-based apps, it should be no surprise that this boom has included the stationary rowing industry. As funding for companies such as Aviron, Ergatta, and Hydrow have shown, this section of the home fitness industry (an estimated $8.6 billion dollar industry by 2023) has long-term plans for growth. One difference from the ‘Peloton model’ that rowers will experience with these new brands is less of an instructor-focused workout. The idea of gamification with these rowing machines will lead to more activities such as digital races and games.
Will Resale Lead to Rebound for Reebok?
After months of back and forth, Adidas finally pulled the plug and sold their Reebok brand to Authentic Brands Group. The deal, worth up the $2.5 billion, ends the 16-year relationship of the two brands and is part of the many consolidation decisions made by Adidas due to a tough 2020. Reebok's purchaser, ABG, is looking to go public within the next year, so adding Reebok to its portfolio of 30 plus brands will only increase that upcoming valuation. One should expect an increased investment from Adidas on their specific ‘Adidas’ brand as that they continue their never-ending competition with Nike.
The Streaming Wars: Along Came a Mouse
Through consistent new programing on Disney+ and live sports returning to ESPN+, Disney is quickly catching up to Netflix when it comes to subscribers. With almost 175 million subscribers in early July 2020, Netflix and their 209 million subscriber count are looking more attainable by the day. As these quarterly numbers continue (not to mention the additional competition from the likes of Amazon), it’s no surprise as to why Netflix is currently investing heavily into a gaming service through their streaming technology. Differentiation and multiple options will be key for all current and future players in the streaming wars.
Be on the lookout next week for the usual round-up of sponsorship news.