Past music and streaming, he believes among the most compelling alternatives lie in media-native sports activities and leisure codecs. “New format leagues and various sports activities ecosystems are constructed from the bottom up as media-native, IP-driven properties, moderately than legacy competitions retrofitted for contemporary consumption,” he mentioned.
These fashions, he famous, are engineered for scale. “Sure rising sports activities and leagues are scaling quickly by designing the game, broadcast product, fan engagement mannequin, and business stack concurrently.” That strategy permits operators to manage your complete ecosystem. “This lets them personal the complete worth chain, together with competitors guidelines, information seize, direct-to-fan channels, and world content material distribution.”
IP funding framework
Investing in mental property requires a unique threat framework than conventional property. For Araya, diligence begins with money circulate sturdiness and authorized certainty.
“The first focus is on the standard and stability of money flows, authorized readability of possession, and structural protections within the credit score or acquisition framework,” he mentioned. Whereas these property may be resilient, he cautioned that they aren’t risk-free. “They nonetheless carry variability tied to consumption traits, catalog focus, and platform dynamics.”
Consequently, rigorous evaluation is important. “Lenders should assess multi-year historic money flows, decay patterns, diversification throughout titles or income sources, in addition to the power of credit score structuring,” Araya mentioned, including that “rigorous IP due diligence” is important given the dangers of possession disputes or litigation.
