QVC Group (QVCGA) Goldman Sachs Communacopia + Technology Conference 2024 summary

Portfolio strategy and recent transactions

• Recent portfolio activity includes the acquisition of MotoGP, the spin-off of the Braves, and completion of the Sirius transaction, reflecting a focus on core strengths and streamlining.

• Sirius is no longer directly held, but remains a strong performer with ongoing innovation in content and technology.

• The Braves have been fully spun out, with Liberty no longer providing corporate services, and the team is positioned for future success.

• Capital allocation remains disciplined, with recent equity raises to finance MotoGP and a continued focus on cash flow and potential share repurchases.

Media and technology convergence

• Technology giants have outpaced traditional media in scale and global reach, fundamentally altering the industry landscape.

• AI may bring some cost savings to content creation, but is unlikely to dramatically change the competitive dynamics.

• Streaming remains a volatile business with high content costs and easy customer churn, unlikely to match the stability of the cable bundle era.

• Ongoing disputes between distributors and content providers reflect shifting economics and consumer preferences in media.

Sports rights and growth opportunities

• F1’s ESPN deal runs through 2025, with future media rights negotiations considering both streaming and linear platforms, and a preference for broad audience reach to support sponsorships.

• Sports rights pricing varies by sport, with F1 benefiting from a young, growing audience and global sponsor interest.

• Women’s and youth sports are seen as having significant growth and monetization potential, with active exploration of new opportunities.

• College football is viewed as under-monetized compared to the NFL, with expectations for narrowing the revenue gap over time.