RE:RE:RE:RE:RE:Avod vpNedward wrote: Well i'm curious to know why you would think the double degit could come before Q3 2021 for spark. I'm not saying you are wrong. But in my opinion, Q4 will be a double digit reduction obviously because of cobid and youtube law. Q1 will still be impacted by covid and i dont think we will se the impact of direct sales yet. For Q2, we will still be comparing to the Q2 of this year which didnt have the impact of youtube law.
We are both speculative here. But I think you forgot to factor in hundred of millions of dollar of ads revenue are flying away from Facebook. Big companies like Cocacola, Disney, P&G,.. are boycotting FB. Where else can they go? Youtube, tik tok, twitter? Obviously there will be a big portion of that money flies to Youtube, so we might see a boost there. I just don't know how much of that will go to Spark.
Clearly Wildbrain already had a talk with the big companies before they hired a VP of direct sales. However, back then they were still working with Youtube to make a smoothly transition from targeted ads to direct ads (Youtube didn't really build a platform for direct ads before, they simply didn't really have anything to support it). So both Wildbrain and Youtube were working on the technology together. And now I guess when we have a foundation, bring directed ads to Spark's platform and let it run there will be a piece of cake. Additionally, I think we also have the data to tell advertisers how their ads are performing.
Things are not yet back to normal. We might have a second wave of Covid or we might not. If we does have a second wave, kids and people will have to stay at home for a longer period, this will benefit our Wildbrain's productions, distribution, Spark or even television business. We are producing animated movies, the streaming war is still there, so we will benefit from it. On the other hand, if Covid is truely over (that's the best), things will gradually back to normal, businesses will spend more on advertising to try to boost their sales, that's good for Wildbrain too. I like the second scenario, it's a win-win for both Wildbrain and our society.
Regarding the youtube law, I think Wildbrain got benefits out of it. They have the best kids content so Youtube's algorithms just direct kids to Spark. That's why we see a huge amount of watch time in Q2 and Q3.
That's my speculation, let me know what you think.