Pink's Bottom Line on Media, Money and Sports - Inaugural Edition
Local news, big tech and baseball stats
Welcome to the inaugural edition of Pink’s Bottom Line on Media, Money and Sports. You can read all out who I am and what this newsletter is about right here.
Now, let’s get started.
MEDIA: Local Down But Not Out
When the Coronavirus pandemic began, many macro trends accelerated more rapidly than they did pre-Covid. Think work from home. Think E-commerce. Think Telemedicine.
In addition to those trends, one sad trend in media also began accelerating — the shuttering of local news outlets. According to research from Poynter, 50 local news organizations are no longer with us since the pandemic began.
Local newsrooms had already suffered for much of the past decade. The emergence of Facebook and Google sucked away critical local advertising revenue. The transition to a digital subscription model has produced mixed results. The end result — a litany of closures, layoffs and importantly, a lack of reporting of critical local news.
All doom and gloom, right?
I don’t think so.
Pink’s Bottom Line
Look for a new, local news company to emerge in the coming months.
In times of crisis or disruptive change, opportunity often emerges for nimble, forward-thinking companies. Microsoft began in the teeth of the early 1970s recession, for example.
A new company will emerge that will figure out how to monetize local news. It will have two distinct advantages. First, legacy systems and revenue streams won’t exist - the new entity will create a new sustainable, business model. Second, it will have access to top-flight talent like perhaps at no other time in history.
MONEY: Words Count for Amazon, Apple, Facebook and Google
Last week was a big week for the big four tech stocks in the United States. Last Wednesday, all four CEOs testified virtually in front of Congress, ostensibly to discuss the size and influence of each company.
On the following day, all four companies reported quarterly earnings. As with all earnings reports, each company conducted an earnings call, so I drilled down into the transcripts of each call.
I searched for how many times either the word “Congress or Washington” was mentioned. For Amazon and Google, neither Congress or Washington was mentioned. Congress was said once in Facebook’s call. It was also said once in Apple’s call, but in connection to the passing of longtime Congressman John Lewis.
Pink’s Bottom Line
While the four company CEOs testified before Congress only a day before each reported earnings, neither the CEOs or the analysts on the calls appeared concerned whatsoever about the testimony or potential negative implications from it. There was essentially only one mention of the hearings among all four companies. Amazing.
If words count, don’t look for much meaningful change coming from Washington in the operations of these tech companies any time soon.
SPORTS: Extra, Extra Except for a Pitcher’s ERA
As you might know, major league baseball changed its rules on extra innings in this unusual 60-game season. In the 10th inning, each team will start its half of the inning with a runner already on second base.
The idea is to speed up the game, which looks like it will do, as the first weekend of games with extra innings all ended in the tenth inning — a far better outcome than a prolonged 14, 15 or even 16 inning contest.
Here’s what I find interesting about the new rule. If the runner who is on second base to start the inning scores, the opposing pitcher will not be charged an earned run.
Pink’s Bottom Line
I think we’re going to see a statistical quirk this season for some relief pitchers. Those pitchers who inherit the runner at second base in the 10th inning could very well take a loss for a game without giving up an earned run. As such, look for a handful of relievers to post very good earned run averages but very poor win-loss records.
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