Pink's Bottom Line on Media, Money and Sports
Movie distribution, global economies and Los Angeles sports
In today’s newsletter, I discuss the way movies are distributed, global economies and Los Angeles sports.
MEDIA: Movie Distribution
US movie box office revenues continue to crater largely due to the negative impact of the coronavirus pandemic.
For this past weekend, gross revenue at US cinemas totaled $12.3 million compared to $137.7 million for the same weekend last year, according to Box Office Mojo.
Meanwhile, movies released directly to video streaming services appear to be generating the most interest these days.
For example, on Friday, Amazon Prime Video releases the next Borat movie and Apple TV+ debuts On the Rocks, a new movie starring Bill Murray.
Pink's Bottom Line
The release of high-profile movies to video streaming services is yet another testament to the power and influence that streaming currently holds in the United States.
Video streaming is already upending the traditional cable television model, and now, it is rapidly changing the way movies are distributed in the United States.
The movie distribution model was changing before the coronavirus pandemic, but the impact from the pandemic has acted as a dramatic accelerant to that change.
MONEY: US and China Economies
While Chinese government economic statistics can be murky at times to interpret, it does appear that the overall trend for the world’s second biggest economy is modest growth.
The Chinese government reports that China’s economy grew 2.7% last quarter compared to the second quarter of the year, and, on a year-over-year basis, GDP increased 4.9% last quarter compared to the third quarter of 2019.
It was a different story at the beginning of the year as China’s economy declined 6.8% on a year-over-year basis in the first quarter due largely to the impact from the coronavirus.
Pink's Bottom Line
The United States, by contrast, suffered a 31.4% quarterly decline in GDP in the second quarter of the year, when the negative impact of the coronavirus was greatest in this country, according to US government statistics.
While the US economy is expected to rebound sharply — the Federal Reserve Bank of Atlanta estimates that GDP could grow 35.2% last quarter compared to the second quarter — the country is still struggling with stubbornly high unemployment and the lack of a new fiscal stimulus plan.
In addition, coronavirus cases are surging to record levels in the United States as we head into late fall and winter.
All of that means a sustained US economic recovery is in peril.
SPORTS: World Series Winner
October is shaping up to be a big one of the biggest professional sports months for the city of Los Angeles in a long time.
A little over a week ago, the Los Angeles Lakers won the NBA title, and just last night in major league baseball, the Los Angeles Dodgers beat the Atlanta Braves to punch their ticket to play in the World Series.
The Dodgers play the Tampa Bay Rays in the first game of the World Series, which begins tomorrow night in Arlington, Texas.
The Dodgers open the series as -210 favorites over the Rays, according to FanDuel Sportsbook. (For those unfamiliar with sports betting, that means a bettor wins $100 if that bettor wagers $210 and the Dodgers win the World Series.)
Pink's Bottom Line
The Dodgers have the best run differential in all of baseball (+136), and the Rays are tied for the best differential (+60) in the American League.
For subscribers of the newsletter, you know that I love the run differential stat, which is the difference in total runs scored by a team compared to total runs allowed in a given season.
As such, I’m predicting that the Dodgers, the team that has the best overall run differential, will win the World Series, and bring home a second professional sports title to the city of Los Angeles in a matter of weeks.
Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he led the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore. Jeremy currently serves as an advisor, consultant or board member to companies in New York, London, Hong Kong and Dubai in the media, technology, sports and financial tech sectors.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)