Kevin Mayer On Candle Media Funding Technique

Kevin Mayer says that the funding technique at Candle Media, the hard-charging leisure startup that he heads with Tom Staggs, is product of his profession time at Disney and TikTok.

Whereas these two firms are behemoths and Candle Media a newcomer, the declare isn’t as outlandish because it appears.

At Disney, Mayer was largely accountable the launch of the direct-to-consumer streaming companies that turned Disney+. And as Disney, Pixar and different group content material was made unique and contained inside a walled backyard, it stoked demand for premium independently-made content material. Candle Media units its sights on changing into simply such a provider.

At TikTok he discovered to understand to energy of platform-driven focusing on, personalization and the scalability of commerce alternatives. Whereas Candle Media isn’t a expertise participant, Mayer says the corporate is within the enterprise of shopping for corporations with well-defined audiences.

Explaining how “valuation haters” initially poured chilly water on Disney’s buy of each Pixar and Marvel, Mayer stated that each of Candle Media’s headline acquisitions had been costly however good worth.

“You must take a look at the money technology potential below your possession,” Mayer stated, talking Wednesday in Singapore on the APOS conference. “We didn’t overpay for Hiya Sunshine.” The acquisition of the Reese Witherspoon-headed firm for $900 million in mid-2021 shocked many observers. Mayer counters that it has a well-defined viewers, is run by girls for ladies.

Moonbug Animation, purchased for $3 billion, is constructed on IP that was largely born on social media. Its headline property CoComelon has grown to 140 million followers on YouTube and is now a success present licensed solely to (walled-garden) Netflix. “We paid so much. It will likely be price much more,” stated Mayer.

These and future acquisitions, he continued, are creator-led firms the place Candle Media can present the business features. “In Asia we’re on the lookout for rising firms throughout movie/TV, social and commerce,” he stated. Moonbug this yr acquired Singapore’s One Animation. Offers are usually a combination of money and Candle Media inventory.

Mayer additionally weighed in on the way forward for premium VOD and strikes by firms like Netflix so as to add advertising-supported tiers. “I believe it’s fairly sensible,” he stated, backing up his conclusion with the instance of (Disney-owned Hulu. When that firm added a tier that price $6 monthly lower than the premium layer, it generated greater than $8 per subscriber of advert income. “The economics had been possible both manner.”

He stated that the businesses equivalent to Peacock and HBO Max that are latecomers to the streaming market can succeed as they search to go international. “Some consolidation will occur,” he stated. “However [streaming video] isn’t a winner takes all scenario [unlike music]. If you wish to watch ‘The Morning Present’ it’s important to subscribe to Apple. If you wish to watch ‘CoComelon,’ it’s important to subscribe to Netflix. No one must subscribe to each Spotify and Apple Music. They’ve the identical content material with a special interface.”