J Scavo

Netflix, YouTube, Spotify, WB and Peacock made a combined $6.8B in Q3 streaming profits, up 42% y/y. WBD reported results today, including $0.3B in adjusted OIBDA for the Streaming segment (+24% ex-FX) on flat revenue, due primarily to the end of a distribution agreement with a former related company (AT&T?) and a one-off international legal settlement (the latter worth 2% of revenue). Advertising revenue was up 15% y/y. While all eyes are on WBD's announced process to explore strategic options, the company said they would not discuss the progress during the earnings call. CNBC reported they expect to make a decision by December. The chart below aggregates reported Operating Income for Netflix and Spotify (translated to dollars) and our modeled Operating Income for YouTube, with adjusted OIBDA for WB Streaming (no studios) and Peacock. What do you think: what option will WBD pursue?

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What’s one way to know your prediction hits the mark? When @faultline’s @ Tommy Flanagan writes “we wholeheartedly agree.”   In his latest issue, Tommy ponders an important question about the growth of short-form content: will its adoption go behind tier-1 broadcasters to niches streamers? I’d argue AI-driven shorts are a necessity for niche and tier-1s alike who want to compete (and win) against the creator economy. The reality is, viewers need more reasons to stay engaged within broadcasters’ ecosystems. AI-driven shorts give them the velocity and intelligence needed to break viewers’ habits of scrolling through their TikTok feed, and instead staying within their O&O platforms.   Simply put, the conversation has moved beyond how to participate in the creator economy to where that economy lives. In 2026, the streaming wars will pivot from a battle over library depth to a fight for the discovery funnel.    What do you think?

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Summons Productions Announces Dual Bay Area Music Residencies for 2026 In a strategic expansion that reflects its rising influence in the independent music sector, Summons Productions, under the leadership of Chairman and CEO Drananda Summons, has secured two year-defining music residencies in the Bay Area—Berkeley and San Francisco—positioning the company for a landmark 2026. The Berkeley Residency, scheduled to launch January 2026, will serve as the flagship location for the Summons Productions performance series Summons Lounge. Designed as an incubator for independent musicians, vocalists, and cross-genre creators, Summons Lounge has rapidly become a proving ground for emerging artistry and an essential space for music discovery in Northern California. In May 2026, Summons Productions will extend its reach with a second Summons Lounge Residency in San Francisco, widening its platform for musicians seeking industry-level performance opportunities without the barriers often found in traditional venues. This dual-residency structure marks a significant evolution in the company’s music-driven programming, allowing Summons Productions to operate simultaneously in two of the Bay Area’s most competitive cultural markets. Both residencies are being established in partnership with North Beach Pizza Berkeley & San Francisco, whose venues have become hubs for live music, creative gatherings, and community-centered entertainment. Their collaboration with Summons Productions underscores a shared mission: to cultivate accessible performance spaces that elevate independent music while supporting the creative economy of the region. As Summons Productions enters 2026 with two anchored residencies, the company strengthens its position as a leading force in the Bay Area’s independent music landscape—bridging artists, audiences, and industry pathways through the ongoing evolution of Summons Lounge.

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Insights from Luminate's 2025 Midyear Music Report are in! 📈 Global Streaming Continues Surge: Global on-demand audio streams rose 10% to 2.5 trillion in H1 2025. This surge is driven by ex-U.S. markets surging 13% to 1.8 trillion, with streaming accounting for 92% of U.S. music consumption in early 2025. 📉 Album Sales Decline Amidst Streaming Dominance: U.S. total album consumption rose 4% to 558.9 million, yet total album sales declined 6% to 41 million in H1 2025. Digital album sales notably dropped 18% to 7 million, signifying a shift from direct purchases. 💿 Physical Album Sales Show Resilience Excluding Key Artists: While overall physical album sales declined 3% to 34 million, excluding all Taylor Swift products reveals a 6% increase to 32 million. This suggests underlying stability or growth in physical formats for other artists. 🎸 Genre Dynamics Evolve, with Rock Leading Growth: Rock leads U.S. on-demand audio sharepoint growth in H1 2025, with Alt Rock driving volume change across subgenres. Christian/Gospel notably ascended to 7th place in US On-Demand Audio volume. 🤠 Country Music's Strong Performance in Current Content: Country music's Current streaming showed an 8% volume growth in H1 2025, signaling strong performance for newer releases. Conversely, R&B/Hip-Hop's Current streaming volume saw a notable 9% decline. 📻 "Recession Pop" Resurgence Signals Catalog Power: Pop songs from the 2007-2012 era grew 6% in On-Demand Audio volume in 2025, exceeding the U.S. industry's 5% rate. This underscores the enduring streaming appeal of specific catalog content, with top tracks including Bruno Mars' "Just the Way You Are" (92M ODA). ❤️‍🔥 Super Fans Drive Deeper Engagement & Monetization: 18% of U.S. music listeners are "super fans," engaging in 5+ distinct ways. These highly engaged consumers significantly contribute to artist monetization, evidenced by higher tipping on platforms like Discord and Twitch. 🎮🎧 New Platforms Crucial for Music Discovery & Interaction: Gaming platforms are new avenues for music, tracking over 197 million Global Interactive On-Demand Streams (April-July 2025). Podcasts are also vital, with 37% of listeners playing new albums in their first week. 🎬 Transmedia Strategies and Catalog Resurgence: Transmedia strategies effectively boost music consumption, with artists leveraging film/TV roles (e.g., LISA on HBO's The White Lotus). Music documentaries, like "Becoming Led Zeppelin," are highly effective in revitalizing catalog streams, driving a sustained 23% increase in the band's global ODA, peaking at 40 million. 🤖 AI's Evolving Role in Music Creation and Industry Dialogue: 1 in 3 U.S. music listeners are comfortable with AI creating song instrumentals. Artists openly using AI, like Aventhis, have generated over 5 million global on-demand audio streams since April 2025, highlighting AI's immediate impact on the industry. Access the report in the comments below:

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Video Game Veteran Ludon Lee Raising $250 Million to Develop Largest Indoor Theme Park in San Francisco Centre Downtown Mall Ludon Lee, a Silicon Valley veteran and Chinatown native, has recently announced his plans to revive the largest indoor video game theme park in downtown San Francisco. With the help of his privately held asset management company, Ludon Toy Company, Lee is raising $250 million to purchase the San Francisco Centre downtown mall and transform it into a state-of-the-art gaming destination. The new video game theme park will feature unlimited gaming for a single admission price, making it a dream come true for avid gamers. Visitors will also have access to a variety of shopping and dining options, making it a one-stop destination for entertainment. But what sets this theme park apart is the inclusion of real money eSports gaming, where players can compete for cash prizes in their favorite video games. Lee, a video game veteran with over 25 years of experience in the industry, is excited to bring this project to life. "I have always been passionate about video games and I believe that this theme park will be a game-changer in the industry. It will not only provide a fun and immersive experience for gamers, but also create job opportunities and boost the local economy," he stated. The San Francisco Centre downtown mall, which has been struggling in recent years, will undergo a major transformation under Lee's leadership. The video game theme park is expected to attract tourists and locals alike, and bring new life to the mall. With Lee's expertise and vision, the project is set to become a major attraction in the heart of San Francisco. Stay tuned for more updates on this exciting development. https://lnkd.in/gsqBFGPC

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A new report from Outpost Partners tracks over 600 music-tech startups and shows early-stage funding remains steady, with average raises around $2 million and valuations trending upward. GenAI is fueling a sharp rise in music creation startups, while engagement-focused deals have dropped, primarily due to the collapse of crypto-based ventures. Europe and North America dominate most of the deals, but many startups hit a wall after their first funding round, especially when trying to grow beyond music. https://lnkd.in/gm4ixpkU #musictech #musicstartup #AImusic

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Decline of Santa Monica’s Third Street Promenade: A Lesson by @alexmcalle The decline of Santa Monica’s Third Street Promenade offers valuable lessons for the location-based entertainment (LBE) industry. Once a thriving hub of shopping, dining, and street performance, the promenade suffered from shifting consumer habits, the rise of e-commerce, lack of fresh programming, and a failure to adapt to changing demographics and cultural tastes. For LBE operators, the key takeaway is that novelty fades quickly without continual reinvention. Just as retail tenants must refresh window displays and product lines, entertainment venues must evolve storylines, seasonal overlays, and interactive elements to keep locals returning—not just tourists. Stagnation breeds decline. Another lesson is the importance of diverse, layered experiences. The promenade relied heavily on retail and light entertainment; when retail faltered, the ecosystem collapsed. LBEs should balance anchor attractions with food, live events, pop-ups, and community-driven programming to ensure resilience. Finally, safety, accessibility, and ambiance are non-negotiable. As foot traffic dwindled, the promenade struggled with perception issues that further drove visitors away. LBEs must invest in atmosphere and guest comfort as much as in the main attraction. The story of Third Street is a reminder: in physical entertainment spaces, constant innovation, multi-dimensional experiences, and community connection are the lifeblood of long-term success. #realestateexpert #realestatedevelopment #themeparkdesigner #Storytelling #CreativeJourney #themeparkdesign #productioncompany #themedentertainmentdesign #themedentertainmentindustry #themedentertainmentdesigner #themedentertainmentassociation #architainment #losangelescounty #losangelescalifornia #losangelesart #creativebusiness #creativebusinesses #immersivestorytelling #immersiveentertainment

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