In today’s newsletter, I discuss broadband subscriber growth, economic recovery and the NFL’s weakest division.
MEDIA: Broadband Subscribers
More consumers are signing up for high-speed broadband while others are ending their pay television subscriptions, according to two different reports from the Leichtman Research Group, a research firm that covers broadband, media and entertainment.
According to one report, a net 1.53 million consumers signed up for broadband last quarter, far above the net 915,000 in the third quarter last year, and the biggest quarterly number of net sign-ups since 2009.
Meanwhile, according to another report, the top multichannel pay television providers saw a net decline of 120,000 subscribers last quarter, though it was still far better than the net 915,000 who stopped their services in the third quarter of 2019.
Pink's Bottom Line
These reports from the Leichtman Group underscore the importance of high-speed broadband, particularly during the coronavirus pandemic when more people are working from home and the need for fast, dependable broadband service is imperative.
The research also shows a continued move away from traditional pay television services, and it indicates that consumers are likely migrating toward video streaming, which requires a quality broadband connection.
MONEY: Economic Recovery
There are some new signs today that point toward an encouraging economic recovery, at least in the month of November.
The IHS Markit Flash US Composite Output Index, which was released this morning, rose to 57.9 last month, up from 56.3 in October, to its highest level in more than five years.
(Note: If that index hits a level above 50, it indicates an expansionary environment while if it hits a level below 50, it indicates a contractionary environment.)
Pink's Bottom Line
In that same report, IHS Markit also reported that its indexes that measure business service activity and business manufacturing activity rose to multi-year highs.
All of these numbers are particularly encouraging considering the negative impact of the coronavirus pandemic.
However, as cases and hospitalizations continue to grow, it’s unclear whether these stronger economic readings will ultimately be sustainable.
SPORTS: NFC Least
In most other NFL seasons, a Thanksgiving day game between two teams with 3-7 records wouldn’t generate much interest, nor would it matter much.
However, this year, in the NFL’s weakest division, the NFC East, the 3-7 Dallas Cowboys play the 3-7 Washington Football Team with major implications for a division championship and a playoff berth.
Right now, the Philadelphia Eagles lead the division with a 3-6-1 record, followed by the Cowboys, the Washington Football Team and the New York Giants, all with 3-7 records.
Pink's Bottom Line
While I suspect the Cowboys will win their game Thursday against Washington and move into a better position to win the division, the Giants are actually favored in their game this weekend against the Cincinnati Bengals. The Eagles are underdogs in their game against Seattle.
That means we will likely see the Cowboys and Giants emerge by the end of this weekend as the frontrunners in the NFC East.
Additionally, those two teams play one another the last weekend of the season with the division title potentially on the line, which means that we’ll have to follow this brutal division all the way until January.
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. Jeremy is also a former CNBC television executive in New York, London and Singapore.
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)