Disney, Fox and WBD’s Sports Streaming Platform – Venu Unveiled!
Disney, Fox, and Warner Bros. Discovery have named their upcoming sports streaming joint venture Venu Sports. Stadiums, arenas, speedways, octagons, courts, rinks, ballparks, and other locations where fans congregate to watch and engage with the action serve as the inspiration for the name. During TV week, the media behemoths unveiled the Venu Sports brand, which is the moniker of their joint upcoming sports streamer, with assistance from creative partners at R/GA. CEO Pete Distad revealed the company’s name and logo.
Venu – the new sports streaming platform
The product, dubbed cord nevers because it is intended for households without access to traditional cable bundles and is scheduled to launch this fall, will be sold directly to customers through a new app. Fox, Disney, and WBD will each hold a third of the business, be equally represented on the board, and grant the joint venture a non-exclusive license to use their sports content. It will include content from the ABC network, as well as the NFL, NBA, WNBA, MLB, NHL, NASCAR, College Sports, UFC, PGA TOUR Golf, Grand Slam Tennis, the FIFA World Cup, cycling, and much more. The linear networks ESPN, ESPN+, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, FOX, FS1, FS2, BTN, TNT, TBS, and TruTV will all be included.
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Behind Venu’s logo
The Venu Sports logo takes a different approach, embracing a navy blue that is one of the most recognizable uniform colors in sports and an offsetting orange that should feel familiar to any fan of the Denver Broncos, Auburn, Illinois, or Syracuse. Disney, Fox, and WBD’s sports logos already rely heavily on bold colors (lots of primary reds and blues) and block lettering. The typeface features the curves of a road race and the tilt of a runner in stride.
Venu Sports onboarded ex-Apple Executive Pete Distad
Primarily announced in February, Venu Sports brought on former Apple executive Distad in March, concurrently with lawmakers voicing antitrust worries regarding the service’s effects. However, media companies recognize the benefits of consolidating multiple sports properties under one roof, particularly during NewFronts and upfronts, as live sports continue to draw larger audiences and the sports broadcast landscape becomes more fragmented with regard to ad buyers. The ESPN, Fox, and WBD sports networks’ portfolios along with ESPN+—which offers programming from all major professional sports leagues and collegiate sports—would be combined to form Venu Sports. As part of the branding announcement, Venu Sports unveiled its website and announced a tentative fall 2024 launch date.
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Additionally, subscribers will be able to combine the product with Disney+, Hulu, or Max, among other services. Prices and further details regarding the launch schedule will be disclosed later. According to analyst estimates, the JV’s monthly pricing could range from $35 to $50. TheWrap was previously informed by a person close to the project that the price would be less than YouTube TV’s $72.99 base plan each month.
Brands venturing away from cable TV
The action is being taken in an attempt to reach viewers who have been steadily drifting away from cable TV, as Disney and other media companies have been doing more and more in the streaming market. Warner Bros. Discovery and The Walt Disney Co. recently revealed that they will be launching a new bundle service this summer that will combine Warner Bros.’ Max app with Disney’s Hulu and Disney+ streaming services.
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Netflix’s Ad-Supported Tier Hits 40M Monthly Active Users Globally
Netflix’s ad-supported tier has passed a new benchmark. Up from 5 million a year ago, the ad tier now has 40 million monthly active users worldwide. In the 12 countries where it is available, the plan accounts for more than 40% of new streamer sign-ups. Along with these updates to the ad tier, the company also unveiled its own internal adtech platform.
Netflix’s ad-supported tier hits a milestone
With over 70% of its ad-supported users watching Netflix for more than 10 hours a month, Nielsen reports, Netflix took a moment during its upfront presentation at Pier59 Studios, where it’s also hosting a two-day experience with rooms themed after popular series, to brag about how engaged its users are. In addition, it claimed that viewers are twice as likely to respond to an advertisement three hours into a show as they are when they first start, in contrast to other streaming services and linear TV.
It appears that Netflix’s move into an ad-supported business model has been successful. Across all tiers, there were 270 million users of the service as of April. Furthermore, Netflix reported that over 40% of new users were registering for the ad-supported tier in areas where advertisements are available. The streamer anticipates that its upcoming platform will give advertisers new perspectives on impact measurement and purchasing strategies. To accommodate new partners like Google’s Display & Video 360, Magnite, and The Trade Desk, Netflix is also currently growing its buyers’ market.
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Netflix to introduce in-house ad tech platform
Netflix announced its intention to introduce “an in-house advertising technology platform” along with the milestone. “Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” stated Amy Reinhard, president of advertising at Netflix. Co-CEO Greg Peters stated during Netflix’s most recent earnings report that “plenty more” needs to be done to “realize the potential” in the ad tier. The company also revealed many upcoming projects, including a renewal for 3 Body Problem, in addition to the ad tier updates.
NFL Christmas Day games on Netflix
The announcement of Netflix’s intention to expand into live events coincides with the news that streaming rights for NFL games on Christmas Day have been acquired. This comes after several live comedy specials and will soon be joined by weekly WWE broadcasts and a boxing match involving Jake Paul and Mike Tyson. Additionally, it coincides with a period in which Netflix and its rivals have begun to resemble traditional cable TV due to price increases and bundles
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Upcoming series and movie lineup
Ted Sarandos, the other co-CEO of Netflix, was very transparent about the initial looks and teases of the shows the company would be showcasing before its upfront event. These included Ryan Murphy’s Monsters: The Lyle and Erik Menendez Story, Cobra Kai, Emily in Paris, Outer Banks, The Night Agent, and Season 2 of Squid Game, which Sarandos referred to as “our big one.” The Waterfront, Rising: Simone Biles, and untitled projects about Olympic Men’s Basketball, a Tim McGraw-led drama, and a Dallas Cowboys docuseries are among the new series the company has announced.
A sequel starring Adam Sandler as Happy Gilmore and a Kathryn Bigelow film were among the new releases that were announced at the same time. The news rounds out Netflix’s big news day, which also featured the previously reported Christmas NFL deal. The three-year deal is expected to transform the TV industry and position the streamer as a top competitor for upfront TV funding.
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Max Kicks Off Marketing Campaign for Europe Launch
Warner Bros. Discovery’s enhanced streaming service, Max, unveiled its European marketing campaign ahead of its launch in the first European countries on 21st May*. Through the campaign, consumers across 20 countries in the Nordics, Iberia and Central and Eastern Europe will get a first look and feel of the Max brand and the sheer breadth of the content on offer, including smash hit Dune: Part Two that will be available to watch on the service on launch day**.
The multifaceted campaign is inspired by the premise that Max makes you feel differently. The creative showcases the breadth and depth of the streamer’s high quality and varying content by visually constructing the idea that the viewer is transported physically and emotionally through watching on Max.
Starting with the anthem TV spot, the viewer is taken on an immersive journey through various worlds, as if travelling through different Max content. From the comfort of the sofa, the on-screen viewer is transported to a dragon laden fiery battlefield where the fight within House Targaryen is in fierce play. Then, as she is plunged into the deep with aquatic life from Discovery’s nature genre, the viewer experiences a moment of calm before coming up for breath to find herself being splashed by Olympic Games Paris 2024 swimmers, mid-competition. From the pool, she is catapulted into a cloudy mist where a Quidditch match is in play and a near collision with Harry Potter on his Nimbus 2000 sends her into a dreamscape world with snippets from popular titles, such as Dune: Part Two and 90 Day Fiancé flashing past her.
The viewer’s emotions and reactions visibly change as she reacts to the different worlds she visits, establishing the notion that Max is rooted in feelings. She then comes back down to earth in an awe-struck state, reflecting on the iconic and exciting content slate on Max. The advert was built in a modular fashion, allowing for the various markets launching Max in the region to showcase locally produced titles based on the offering in each country (title availability varies by country).
For the out of home and digital creative, the design is intended to spark an emotional connection and build brand awareness of Max. In these static and animated builds, bold messages are partnered with highly anticipated content from the Warner Bros. Discovery slate. For instance, the advert for House of the Dragon S2 states ‘Where Rivalries Unite Us’, and for Dune: Part Two ‘Where Blockbusters Transport You’. The multi-title assets featured in the digital and outdoor creative are designed to showcase the breadth across genres that Max brings such as House of the Dragon alongside 90 Day Fiancé and the Harry Potter film collection.
This part of the campaign taps into the essence of what it is to be human – to unite, to be moved, to remember – which consumers across the region can relate to and share in.
To reflect the diverse nature of Europe, each market will rollout out a localised version of the campaign, allowing consumers to better relate to the service. For example, in Norway, top talent from the country will take viewers on a comedic walk through the new product, detailing its name and hinting at some of the biggest shows they’re looking forward to watching on Max.
Rebecca Rormark, SVP Marketing, Streaming EMEA at Warner Bros. Discovery commented: “Delivering the creative campaign for the launch of Max in Europe is an incredibly proud and important moment. The European launch marks the start of a very exciting global journey. It also builds on our long heritage in Europe, bringing together an incredible breadth and depth of culture-defining entertainment from our services and networks, all in one place. We have captured this by creating, developing and producing a hero TV spot inspired by how our content makes you feel differently as part of broad and strategic pan-EMEA campaign that epitomises everything Max stands for and brings the brand to life.”
Max launches in Iberia, Nordics and countries in Central and Eastern Europe on 21st May, with further launches in France, Netherlands, Poland and Belgium on 11th June*.
Warner Bros. Discovery Launches Olli, its Data-Platform for Advertising Solutions
Warner Bros. Discovery revealed the launch of Olli, a proprietary first-party data platform that will power the next generation of advanced advertising solutions for partners. Through the platform, advertisers will be able to organize, launch, and track ad campaigns throughout WBD’s content library. Olli enables seamless campaign planning, activation, and measurement across WBD’s entire portfolio of premium content and brands by combining data, audience intelligence, and ad tech solutions.
WBD’s first-party data platform Olli
With a new feature called data-driven video, the Olli platform will enable advertisers to target specific demographics, assisting clients in optimizing reach, reducing waste, and increasing engagement. With data-driven video, clients can refocus to balance the target audience across WBD’s linear and digital platforms after the early exclusion of heavy linear TV viewers. Additionally, it contains tools to lessen needless exposure for the intended audience.
The product promises to provide audience solutions and streamline media planning. Through the collection of first-party data from its direct users and consumers, Olli will be able to identify audiences. The user base of WBD’s portfolio of brands, which includes HBO and Max, Discovery+, CNN, TNT Sports, Bleacher Report, Food Network, HGTV, and OWN: Oprah Winfrey Network, will be tapped into by Olli.
WBD has previously collaborated with media agencies to offer data-driven video solutions, including MG, RPA, and Wayfair. The third quarter of this year will see the start of testing by IPG Mediabrands.
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Media Strategy
WBD can strengthen the following pillars of a client’s media strategy with Olli:
Data and Identity
Olli’s extensive audience graph provides detailed insights into user behaviors and preferences. It is derived from direct consumer relationships spanning over 100 million households and 700 million devices in the United States. This makes it possible to identify audiences more precisely, which strengthens engagement and facilitates the creation of strategies. Olli creates comprehensive audience profiles by utilizing first-party data from active users, guaranteeing accurate first-party targeting and improved campaign performance.
Activation and Automation
By unifying planning across the portfolio and integrating marketer data with WBD’s extensive first-party audience library, Olli optimizes WBD’s ad tech processes and delivers unrivaled targeting fidelity and campaign relevance along with faster time-to-market and cost savings. By utilizing Snowflake’s Data Clean Room solutions, Olli improves data security and privacy compliance, two essential aspects of the modern digital advertising landscape.
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Measurement and Insights
Olli provides WBD with cutting-edge measurement techniques and actionable ad analytics to demonstrate effectiveness and attribution at every stage of the customer journey. Olli offers partners more precise and useful insight and measurement than ever before thanks to its upcoming fully integrated measurement partners, like ABCS Insights and LoopMe.
Here’s what they said
Ryan Gould, Head of Digital Ad Sales, Warner Bros. Discovery said,
“With the introduction of Olli and Data-Driven Video, Warner Bros. Discovery offers a transformative approach to how media strategies are crafted and executed. Our goal is to ensure that every connection between brand and audience is reached in the most efficient and effective way across our vast expanse of digital and traditional platforms. We’ve already seen early success with this offering, and we look forward to bringing it to the wider marketplace working with marketers looking to activate advanced audience segments to achieve their advertising, sales and marketing objectives.”
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ESPN, Fox, and Warner Bros. Discovery Form a Joint Venture for New Streaming Sports Platform
FOX, Warner Bros. Discovery, and ESPN, a division of the Walt Disney Company, have come to an agreement on the main terms of forming a new joint venture. They will develop an inventive new platform to house an exciting new streaming sports service. Major college and professional games that are typically only broadcast on traditional TV will be available on the sports-focused streaming service.
New streaming sports service
The platform combines the sports networks, select direct-to-consumer (DTC) sports services, and sports rights portfolios of the companies, which include college and professional sports content from all the major leagues. Final agreements between the parties must be negotiated before the pay service can be formed. The product will be offered to customers directly through a new app. It is slated to go on sale in the fall of 2024. Additionally, subscribers have the option to bundle the product with Disney+, Hulu, and/or Max. The service would be rebranded and run by a separate management group.
Key Features of the new standalone streaming service
Each company will own one-third of the service. We still need to decide on the service’s name and price. The objective is to entice viewers who do not have a pay TV subscription. They will provide them with access to all the sports included in that package. All three companies’ standalone subscription streaming services will feature an unparalleled quantity of live sports programming from their respective sports networks. Its main source of income will be from user subscription fees. On its own networks, each network will still sell advertisements that conflict with its content. For the joint venture, there will be equal board representation for each of the three participating companies. Each of them will grant the joint venture a non-exclusive license to use their sports content.
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Service catered specifically towards sports fans
To give sports fans a fresh and unique experience, the platform would compile content to provide a wide variety of dynamic sports content. Fans could access linear networks, such as ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, and ESPN+, by subscribing to this targeted, all-in-one premium sports service. Among the most watched programs that will be included in the package, it will also include Monday Night Football.
Along with NASCAR, the PGA Tour, Grand Slams of tennis, and more, the new service will also broadcast games from the National Football League (NFL), Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL). Users of Max, Hulu, and Disney Plus will also be able to bundle the new service.
Sports streaming landscape
As some leagues choose to keep broadcasting games on conventional cable networks and others have negotiated agreements with streaming services, the landscape of sports streaming has grown more fragmented. The live sports add-on for Warner Bros. Discovery’s Max streaming service debuted last year and costs an additional $9.99 per month. By combining some of the biggest sports networks, viewers may have access to even more streaming options that aren’t restricted to a smaller number of sports and leagues. It might produce the kind of incredible sports streaming service that fans of sports would love to have in the terrible current climate. Or it might just be a more costly, unfinished, and glitch-filled version of what we already had with cable TV.
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Here’s what they said
Bob Iger, Chief Executive Officer of The Walt Disney Company said,
The launch of this new streaming sports service is a significant moment for Disney and ESPN, a major win for sports fans, and an important step forward for the media business. This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other industry leaders as part of a differentiated sports-centric service. I’m grateful to Jimmy Pitaro and the team at ESPN, who are at the forefront of innovating on behalf of consumers to create new offerings with more choice and greater value.
Lachlan Murdoch, Executive Chair and Chief Executive Officer of FOX added,
We’re pumped to bring the FOX Sports portfolio to this new and exciting platform. We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place.
David Zaslav, Chief Executive Officer of Warner Bros. Discovery, stated,
At WBD, our ambition is always to connect our leading content and brands with as many viewers as possible, and this exciting joint venture and the unparalleled combination of marquee sports rights and access to the greatest sporting events in the world allows us to do just that. This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment and value and we’re thrilled to deliver it to sports fans.
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Disney Agrees to Sell 60% of India Business to Reliance-backed Viacom18
The Walt Disney Company has agreed to sell 60% of its India business to Viacom18 for $3.9 billion (INR 33,000 crore), according to the Wall Street Journal. The deal is expected to close this month. Viacom18 is owned by Mukesh Ambani, chairman of Reliance Industries (RIL). Walt Disney and Reliance Industries have been in deep discussions to combine their Indian entertainment businesses since December 2023. The businesses, however, were unable to come to a consensus regarding structure or valuations.
Disney agrees to sell 60% India business for INR 33,000 crore
Following rumors of Reliance Industries’ interest, Viacom18, owned by Reliance, the largest tycoon in Asia by Mukesh Ambani, has now finalized the deal and signed a non-binding term sheet to combine their India operations last month. The deal’s value was previously estimated by reports to be $10 billion. The decline in value is partially attributable to a write-off of revenue from Disney’s sale of cricket TV rights to struggling Zee Entertainment Enterprises Ltd., which is currently anticipated to be unable to make the payment. But according to a report this week from Bloomberg, Disney’s business in India are only worth about $4.5 billion, not the $10 billion that the US entertainment giant had previously sought.
Disney facing difficulties in India
Disney’s difficulties with streaming in India were made worse when Viacom18 outbid the American corporation for the IPL rights, paying $2.6 billion to stream the competition through 2017. Disney’s quarterly earnings in August 2023 revealed a 12 million decrease in streaming subscribers in the subcontinent, which was primarily ascribed to Hotstar’s decision to discontinue IPL streaming.
Disney+ Hotstar in India is facing difficulties because of this deal. Subscriptions to the platform have steadily decreased, from 61.3 million in September 2022 to 37.6 million a year later. Contributing factors include the loss of important content like HBO and IPL shows as well as competition from Jio Cinema. Although the sale’s official motivations are still unknown, rumors suggest:
- Priority Shifts: Disney may be refocusing its resources on high-growth sectors like Disney+ and core markets.
- Content Challenges: It may have been challenging to navigate the intricate Indian media environment and obtain well-liked content.
- Financial considerations: Simplifying operations and increasing financial flexibility are two benefits of offloading a part of the company.
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Increasing Opportunities for Viacom18
The media behemoth is now poised to take a leading role in the streaming wars. This is all thanks to its agreement with Reliance Industries’ Viacom18. Disney, on the other hand, will keep working with other companies. It will create and distribute content while holding a 40% share. Reliance holds a 51% stake, while Bodhi Tree Systems, a venture led by Uday Shankar, the former head of Disney India, and James Murdoch, holds a 9% stake. With this decision, both businesses enter a new chapter in the ever-changing Indian media landscape. The exact course of this strategic change remains to be seen, but the entertainment sector in the area will undoubtedly be greatly impacted.
Other Business Investment Plans
Viacom18 plans to invest approximately $1.5 billion in cash and equity in the stake. Disney owns a portion of the Tata Sky, Hotstar streaming, and Star India networks. The deal, which is expected to close in February, highlights the difficulties in navigating India’s vast 1.4-billion-person market. Disney Star and Viacom18 were reportedly preparing to battle it out for the right to advertise in the upcoming IPL 2024 earlier this month. Disney Star, which will broadcast the IPL matches on its sports channels, is reportedly requesting INR 167 crore and 83 crore for associate and co-presenting sponsorships on standard definition (SD) channels, respectively, according to a report in the Economic Times.
The broadcaster is requesting INR 35 crore for associate sponsorship and INR 71 crore for co-presenting sponsorship for HD channels. In contrast, Viacom18 has maintained its advertising rates at the same level to attract more advertisers. Viacom18 will continue to stream IPL matches for free on JioCinema. For the 2023 Indian Premier League, the company reportedly signed over 500 advertisers.
Hotstar a few years back
For a few quarters, Hotstar ruled the Indian video streaming scene. However, since then, Viacom18, supported by Reliance, has gained traction by paying roughly $3 billion to secure the five-year rights to stream the IPL cricket matches. Disney paid $3 billion to broadcast the content on television for the same five-year rights.
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Roku and Unity Announce Collaboration to Aid Mobile App Marketers
Roku, the top streaming service in the US and the world’s top platform for producing and managing real-time 3D (RT3D) content, and Unity have announced a strategic product and commercial partnership. This partnership will make it easier for mobile app marketers to extend their app install campaigns to TV streaming inventory. Through this partnership, mobile app marketers will have the only seamless TV streaming campaign execution experience possible by combining Unity’s user acquisition technology and experience with Roku’s premium inventory.
Roku – Unity solution for app marketers
The solution, which is currently in beta testing, links Unity’s Luna app marketing platform to Roku’s premium TV streaming inventory by fusing Unity’s campaign management and optimization technology with Roku’s Action Ads. With a smooth transition from ad view to download, Roku’s Action Ads offer advertisers the advantages of click-through measurement along with an easy-to-use discovery flow for viewers. They can therefore evaluate the effectiveness of their streaming TV campaigns from the point of initial ad exposure to the download of mobile apps.
TV streaming and Roku Action Ads
The first-to-market collaboration coincides with the expansion of TV streaming advertising. GroupM projects that global TV streaming ad revenue will reach $25.9 billion in 2023, an increase of 13.2%. Given that, at least 82 of the top 100 games use Unity to expand their user bases and that Roku has nearly half of all broadband homes in the United States, these two platforms are ideally positioned to assist app marketers in utilizing more screens and devices to engage potential users and spur incremental growth. Through this partnership, marketers can now take advantage of Roku Action Ads for a seamless experience in addition to closing the measurement loop for improved optimization.
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App marketers and TV streaming campaigns
With the Roku remote, users can start the game download on any mobile device and go back to watching TV shows without any hassles. Additionally, app marketers can now track every aspect of their TV streaming campaigns, from the first TV ad exposure to the final mobile app download, which opens up new, more affordable growth strategies. When Roku’s scaled inventory is combined with Luna’s campaign management technology, app marketers hoping to boost performance on home TVs will have never-before-seen opportunities.
After logging in from Unity, app marketers will go to Luna and choose Roku from a list of marketing channels. This makes it simple for marketers of mobile apps to purchase cross-channel advertising on a single platform. After the beta test, Luna will collaborate with a select group of partners to expand to Roku.
Here’s what they said
Miles Fisher, Senior Director, Head of Emerging and Programmatic Sales at Roku said,
Mobile app marketers seek to maximize their budgets and ad opportunities. TV streaming has become the right performance channel to enable growth and provide channel diversity in a highly competitive market. Roku’s scale, tech, and direct connection with the viewer are uniquely positioned to make the largest screen in the home work harder for mobile performance marketers on Unity.
Omer Kaplan, SVP of Revenue and Operations for Unity Grow added,
The driving force behind this partnership is to turn CTV into a high-scale performance channel for apps and games. Savvy app marketers today know that they have to harness every available channel to drive truly incremental and cost-efficient growth, and CTV represents a huge and largely untapped opportunity. By coupling that scaled inventory with Luna from Unity’s robust campaign management and optimization technology, this partnership unlocks unique value for app marketers who are looking to drive performance on home TVs. We believe that there is no better combination of partners more suited to making CTV a successful performance marketing channel to add to app advertisers’ UA toolkit.
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