Tiger Woods and Discovery Communications Inc. (NASDAQ: DISCA) are striking a content partnership.
After a $2-billion, 12-year agreement with the PGA Tour was formed in June, Discovery is doubling down on golf with the announcement of a multiyear agreement to include original content with Woods on its planned Golf TV streaming service.
Discovery CEO David Zaslav said the aim is for the streaming service to be the Netflix, Inc. (NASDAQ: NFLX) of golf, telling Bloomberg: “We think the PGA Tour is the most compelling international sports IP in the world.”
The deal with Woods marks the first significant original content agreement Discovery has struck for the service, Guggenheim analysts said in a note.
“Collaboration with Mr. Woods provides access to the highest-profile personality that the tour has to offer. Tiger’s resurgent performance in 2018, following several years of absence from televised golf, has fueled massive audience growth,” according to the sell-side firm.
When it comes to ratings, Woods doesn’t just move the needle — he is the needle.
Ratings for the final round of the PGA Championship — where Woods nearly won his first major in 10 years — were up 69 percent. When Woods won the Tour Championship in September, ratings were up 206 percent year-over-year.
"The Match," a Thanksgiving pay-per-view game with Phil Mickelson, drew 750,000 unique views and 55 million minutes consumed on the relatively little-known Bleacher Report Live stream alone.
Guggenheim Sees A Win For Discovery
The terms of the agreement between Discovery and Woods were not disclosed.
Guggenheim said it's a positive for Discovery, which is making a significant investment in golf.
“Discovery management has shown a commitment to content investment, and this is a unique opportunity to include exclusive content directly from and developed with the most popular figure in the genre," the firm's analysts said.
Woods and Golf TV are collaborating to develop weekly practice and instructional videos, exclusive access to Woods' preparation routines, behind-the-scenes access before and after PGA Tour rounds and unqiue and exclusive post-round commentary, the pro golfer said in a statement.
"I want to talk to golf fans and golfers everywhere, directly, and straight from me. That's important to me. Talking about what we care about: what's happening on the course, how to play better, how can I shoot lower scores tomorrow, how can I beat my friends?"
'The Match': Pay-Per-View Golf May Be A First, But Primetime Tee-Offs Are Nothing New
Tiger Woods Still Has 'Halo Effect' On TV Ratings
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|Nov 2018||MKM Partners||Maintains||Buy||Buy|
|Nov 2018||Imperial Capital||Downgrades||Outperform||In-Line|
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