Nick Zangler: Hey, guys. I got a few here. First just a high-level one. You kind of touched on it in the call but just wanted to see if you could expand on the commentary regarding your thoughts on Disney+ streaming service accessibility via the charter subscription. Just specifically, do you expect and do you think that we’re entering a time where MVPDs and streaming services are going to collectively pivot their model such that it’s accessible via a distributor the streaming services that is? And would this be a potential catalyst for stabilization across MVPDs in what seems to be in the face of what is accelerating churn, I guess across distributors in this last quarter?
Adam Symson: Yes. Nick, I mean I think you’re exactly right. Ultimately, first of all the price of all of the streaming services alone and a la carte has gone up so much that we’ve essentially built a new more expensive bundle. So the pay TV ecosystem will absolutely benefit from bundling in SVOD services with the pay TV subscription. So we think that the resolution of the Charter, Disney blackout validates the future of the retrans ecosystem, right? So their agreement showed us first of all that broadcast station content was still the most watched and most valuable content for distributors. And the power of the linear cable platform was obviously clearly visible in Disney’s willingness to bundle in Disney+, which we believe will slow cord cutting and provide that stabilization you referenced.
One thing I also want to add in the fact that Charter was able to usually drop Disney’s viewed cable nets, freeze up ad dollars — sorry, freeze up dollars in general to be redirected to the more valuable programming like we’ve for a long time been calling for a rationalization of the cable lineup. And we think Charter came out with a clear and compelling case for value and bundling it together is going to make the pay TV ecosystem better for the consumer and we’ll hold it together benefiting broadcasters. So given the results of the negotiation, I think broadcasters benefit.
Nick Zangler: Very helpful. And then, just a question on the network side, just expanding on the previous one. Just regard — with regards to the upfront weakness that you talked about definitely hearing that across the board. But I’m wondering if this is just a reflection of advertisers looking for more flexibility. And effectively, they’re unwilling to commit to that upfront as they have been in years past. And therefore, you have less visibility, which is leading to your guide. And so my question is, given that are you guiding because of the less visibility that you have there? And then if the scatter market demand materializes, that would be the catalyst to fill it and then potentially generate upside versus what you’re guiding for that line item?
And then just thinking about 2024, and how we should think about networks for 2024, what would you think on modeling out the potential continuation of this trend that you’re guiding right now? Just thoughts on how we should think about modeling out 2024, given how you’re thinking about fourth quarter? Thanks.
Lisa Knutson: Yes I think you’re absolutely, right. The less visibility phenomenon has really probably for the last several quarters been an issue and probably led to a bit more conservatism in our guide for Q2 and Q3. I would say that certainly, that lack of visibility continues their writing dollars later in the – and certainly the upfront – the weaker upfront industry-wide weaker upfront does in some ways give you an opportunity to write more in scatter. As I said, we see pretty big premiums from a CPM perspective in scatter versus our upfront dollars that are committed. And so if advertisers want that flexibility, they’re going to pay for that flexibility with higher rates from a scatter perspective, which we’re happy to do.
So I think with the guide – our guide being down in the 10% range if you back out what we’ve talked about in terms of our the sunsetting of our lower-margin CTV product, we would be close to the 8% range. So I think we’re watching the marketplace carefully. We’re being very diligent in writing the highest CPM that we can, whether that’s in scatter or DR, if certain categories get hot.
