The Annual - End of the Year Newsletter (2022)

TIMELINE & HIGHLIGHTS

Alex Chang / Blake Zender / Karla Sanchez

FOREWORD

Welcome to from our team, relevant to our shared amongst that is now generated from As we approach impactful moments inaugural issue dialogue and

FOREWORD

the first issue of “The Annual” . Many of you have been recipients of “The Weekly Brief” team, a newsletter providing insights on industry news and information that we find our company and business across the Americas . The newsletter began as a modest email amongst a handful of people and over the past few years, has evolved into a curated op - ed shared amongst our colleagues globally . We are amazed at the feedback and dialogue from this weekly email and thankful for allowing us to share our perspective with you . approach the end of 2022 , it is appropriate to reflect on some of the most memorable and moments across our industry and provide a glimpse into what 2023 has in store . In this issue of “The Annual” we are also reaching out to a wider audience to generate further and collaboration across our global teams in the coming year .

VH1 Breaks From MTV and Joins BET Media Group Netflix Explores Investing in Sports Leagues, Bidding on Streaming Rights

Bob Iger Returns to Disney as CEO, Immediately Announces Restructure

Nov. Dec.

Lions Gate Expects to Break Up Film Studio and Starz

Jeff Zucker to Lead $1 Billion Venture to Acquire Media, Sports Properties

Amazon tops Netflix as biggest subscription streamer in U.S.

DEALMAKING ACROSS THE AMERICAS

In today's rapidly evolving media landscape, it is more important than ever for companies to come together and combine their strengths in order to stay competitive and continue to innovate Through acquisition, mergers, partnerships, etc , companies can expand their reach across new markets, as well as gain access to valuable technology, IP, and talent. These deals also allow companies to create economies of scale and increase efficiency, helping to better serve their customers.

“While the next several months may be challenging for certain buyers given current capital costs, the market has historically rewarded those companies that can be bold and aggressive in finding opportunistic M&A when other players remain on the sidelines”

- Bart Spiegel (PwC)

We’ve seen a flurry of deals as companies look to consolidate their assets and gain a competitive advantage. The proliferation of streaming services and the increasing importance of IP has made M&A a compelling option for many entertainment companies While some may be skeptical of the motivations behind these deals, there is no denying that they have become a driving force in the industry. We expect this trend to continue as head into 2023.

LINEAR & STREAMING MIXTURE

MEMORABLE MOMENTS OF 2022

LOOKING AHEAD

Over the past year we ’ve seen consolidation at scale , macroeconomic volatility, and industry w ide restructuring. While we are likely to see these trends continue, 2023 will be defined (for good or bad), by the rise of AVOD, Sports R ights, a nd yes, even the Metaverse.

For years, Wall Street rewarded media companies for growing their number of streaming subscribers at any cost. Now, the market downturn has set a new expectation for streamers to be profitable. Couple that with the migration of ads from traditional to streaming and marketers look ing to reach new, and often younger, audiences that have cut the cord and the path to AVOD becomes clear By the end of the year, every major OTT platform and Linear player will have a n ad supported plan for its customers. It becomes the natural transition from Linear t o Streaming everyone has waited for.

How do you reach new audiences and brands for your AVOD platform, you pursue the most mass appeal content there is, sports. Streaming providers are already spending billions of dollars on live sports. They have purchased rights across the spectrum of sporting events in a bid to attract, retain, and monetize their audiences via this popular content (ex, Amazon with NFL, Apple with ML B & MLS, etc .). Deloitte predicts that in 2023, streamers could spend more than $6 billion on major sports rights in the largest global markets. From a content lense, we will see more companion content (i.e., docs, scripted, etc.) to keep the viewers in the OTT ecosystem .

While the excitement around NFTs and visions of a metaverse -driven future may have cooled in late 2022 as macroeconomic factors took center stage, media companies will continue to prepare for the next age of interactivity. Capital allocation to metaverse-related initiatives should remain modest over the near term, but not minimal there is commitment across the industry to stay proactive and engage d with this emerging opportunity. Only time will tell if the investments pay off.

As we continue to look to the future, it's clear that the industry is undergoing a profound transformation. With the rapid advancement of technology and the proliferation of new platforms and distribution channels, the way we create, consume, and experienc e entertainment is changing at an unprecedented rate. Amidst the chaos, the adage is the same . . . “Content is King”. While broadcasters and networks continue to experiment, the core is still fueled by content crea tion and creative IP. I n 2023 and the years ahead, Banijay is poised to capitalize on the increasing and diversified demand.

On Behalf of Our Entire Team, Thank You for Reading & Happy Holidays