Breaking LIV Golf TV partner shutters midway through inaugural season after brutal……

By | June 27, 2024

After cruel, a partner destroying the LIV golf TV partner in the middle of the first season …

 

After cruel, a partner destroying the LIV golf TV partner in the middle of the first season …

It turns out that caffeine television needed more than LIV golf.
On Wednesday morning, emerging sports streakers with the huge VC Andreessen Horowitz and the Murdoch family were suddenly closed with profits just a few months after securing the LIV rights of digital broadcasting. “Everything is approaching the end,” read the message to the Web Cafeine TV. “We haven’t made any profits yet, so we decided to suspend the service on June 26, where we found the next step.

This announcement shows the last online development of the law against LIV media. League events, which air on The CW under a revenue-sharing deal, have had extremely low TV ratings since the league signed a two-year deal with the network in early 2023, and the streaming world has proven less friendly. Caffeine TV’s sudden closure.
LIV had little to do with Caffeine TV’s financial situation, which was largely due to the company’s difficulties in properly planning for profits with investors after a 2018 funding round reportedly worth $150 million. (The downside of big investors is that they often expect big profits.) Still, the news highlights a central problem in LIV’s efforts to bring benefits to its backers: Highly lucrative rights deals are the oxygen of professional sports. It’s a business that LIV doesn’t have. Without solid media-rights contracts to pay the bills, it will be hard for LIV to be more than a loss-making leader for the Saudi PIF. For these reasons, LIV’s decision to seek out a streaming partner and enter the market in the summer of 2023 was seen as a huge growth opportunity. The streaming rights business in professional sports is exploding, with giant interests such as Netflix and Amazon moving into what is considered the most lucrative market in the streaming entertainment industry. If LIV could secure one of the larger partners, or even a smaller deal, with a premium streamer like Apple, it could signal to the linear TV industry and the world that audience perception is changing.
Instead, LIV signed a deal with Caffeine TV that stunned many in the golf TV industry. Few people had heard of the streamer when LIV announced the deal, and those who did knew it primarily as a home for niche sports like the World Surfing League. These feelings were only amplified when bizarre recording measurements of the first round of LIV events hosted on Caffeine TV appeared to show 2 million viewers watching the Jeddah LIV event, roughly the size of the broadcasts of the US Open earlier this week on NBC. Caffeine’s closure leaves LIV Golf without a paid streaming rights partner in the United States with six events still remaining in its 2024 campaign. The good news for LIV is that the league is not without a streaming option. LIV made direct-to-consumer streaming rights available through its YouTube subscription product and the LIV Golf app in 2022 and 2023, and continued to operate these services after its deal with Caffeine TV.
The future of the media law business remains uncertain for LIV, even as legally innovative golf broadcast league production continues to improve despite lacking the commercial clout of most other professional golf broadcasts. LIV may be in a position to be optimistic given the current situation, especially if the NBA shakes up the industry with its expected $2.5 billion per year deal with NBC and Warner Bros. Discovery, Fox and other big streamers could suddenly find themselves in a bind when it comes to sports rights, and LIV could be one of the few cheap options waiting in the wings.

But looking at things more practically, it’s best to remember the first rule of sports rights: you’re a company doing business.

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