Red Bull Looking To Expand and Capitalize From Its YouTube Sports Coverage
Red Bull is "trying to transform itself from a marketer into a competitive media company by making money on the sports coverage it has been largely giving away for years," according to John Jurgensen of the WALL STREET JOURNAL. The strategy includes "selling downloads of its self-financed movies, licensing its shows to TV networks and pocketing ad revenue from its thriving YouTube channels." Red Bull since '87 has "built a global business on its yellow caffeine-laced drink and deep-pocketed patronage of action sports, from skateboarding to cliff diving." The company has an estimated $7B in "annual retail sales and a highly prized pipeline to young consumers." Red Bull's moves "signal a new phase in the evolution of 'branded entertainment.'" The company expects to "produce 1,000 hours of footage next year, up from 850 in 2012." Its 13 episodic YouTube shows "follow the exploits of athletes like freestyle motocross rider Travis Pastrana and surfer Kai Lenny." There also is a "gonzo sports program for NBC called the Red Bull Signature Series, and a monthly magazine -- 'The Red Bulletin' -- with an international circulation of 2.7 million" (WALL STREET JOURNAL, 12/21).