Fascinating! Thanks! I figured someone here would know modern practice.
I was flummoxed the other day when I talked with someone who was a content equity trader -- I didn't even realize that class of finance existed.
I was flummoxed the other day when I talked with someone who was a content equity trader -- I didn't even realize that class of finance existed.
For sports it's different, typically you bid for the right to own a geographic market and the games are sometimes split into bundles where you can bid for one or all bundles depending on how deep your pockets are. You'll then get to keep exclusive or non-exclusive rights for a certain number of years. You'll then pay annually/quarterly for that right at the total bid package for the term of the deal (e.g. 5 years). Depending on the contract you might be able to re-sell that right to other companies as well, which dilutes your audience, but may increase the distribution overall.
Then aside from the rights, you end up paying infrastructure costs both fixed and variable. You also generally commit to CDN capacity for distribution based on a forecast of how much you think your customers will watch in any quarter.