The Catapult Group International Ltd (ASX:CAT) share price is pushing higher on Tuesday after the release of an update…
The post Why the Catapult (ASX:CAT) share price is jumping higher today appeared first on The Motley Fool Australia. –
The Catapult Group International Ltd (ASX: CAT) share price has been a positive performer on Tuesday in morning.
At the time of writing, the sports analytics and wearables company’s shares are up 2% to $1.79.
Why is the Catapult share price pushing higher?
Investors have been buying Catapult’s shares on Tuesday after the release of an update in relation to its Media & Engagement vertical.
According to the release, for the 2020-21 US college sports year, Catapult Licensing has renewed agreements with NFL Productions and Bleacher Report, a sports media subsidiary of Turner Broadcasting System (TBS).
The Bleacher Report production team uses Catapult to create original content on a daily basis, while NFL Productions relies on Catapult Licensing for research, rights clearances, and content fulfilment services. This is for a multitude of projects, which include original programming on NFL Network and documentary projects produced by NFL Films.
Management notes that Catapult content is often featured in popular NFL programming, such as “A Football Life”, “Path to the Draft”, and coverage of the NFL Draft, with audiences in the several millions for each program.
It also advised that over the past two months, Catapult Licensing has supported global brands such as Samsung, Guinness, Nissan, and Adidas in creating commercial campaigns for the 2021 football season.
Furthermore, the company has signed a multi-year partnership with the College Football Playoff (CFP), which is the annual post-season invitational tournament to determine the NCAA college football national champion. With this addition, management notes that Catapult Licensing will represent one of the most prestigious libraries in American sports.
Content licensing potential
Management believes that Catapult’s innovative content licensing business has a lot of potential.
It explained: “Video content licensing remains an important component of the pro sports ecosystem, and Catapult continues innovating within a lucrative vertical for the Company. Catapult’s leadership in SaaS sports technology has positioned it to manage the video content assets (i.e. footage) of its customers.”
“Content licensing is a major revenue-generating activity for Catapult’s core North American customers. Catapult adds significant value to these customers through the use of its technology and market knowledge, thereby cementing the Company’s relationships with these leagues and teams.”
“For the 2021 college football season, Catapult Licensing launched a new live clipping solution, which allows teams to schedule live game feeds, make live clip edits, add custom pre and post rolls, and publish to multiple social media channels. The solution is already being used by many NCAA teams for social media coverage of football games,” it concluded.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.