Pink's Bottom Line on Media, Money and Sports

Home entertainment, institutional investor confidence and an emerging NBA team

In today’s newsletter, I discuss home entertainment, institutional investor confidence and an emerging NBA team.

MEDIA: Home Entertainment

Consumers spent more time on home entertainment options this year compared to last year, according to data from the NPD Group, a data analytics and research firm.

Consumers spent 6% more time on home entertainment options in 2020 compared to 2019, according to the NPD Group.

Pink's Bottom Line

From a money perspective, television and movies were popular, accounting for nearly one-third of annual home entertainment budgets.

Interestingly, though, those aged 35 to 44 — an important demographic because of its purchasing power — spent 74% more money on books in 2020 than in 2019, according to NPD.

That spending increase on books was the biggest annual percentage increase among all home entertainment categories showing that books can still capture the country’s attention despite higher tech options that are widely available.

MONEY: Institutional Investor Confidence

Despite surging coronavirus cases and despite the fact that US stock markets are hovering around their all-time highs, global institutional investors appear more confident, at least according to one measure, the State Street Global Investor Confidence Index.

That index rose to a level of 104.1 this month compared to a revised 90.8 in November — a reading of 100 is considered neutral while a reading above 100 means that institutional investors have a healthier appetite for risk as measured by increased allocations to equities in their portfolios.

Pink's Bottom Line

Meanwhile, the North American Investor Confidence Index jumped to 103.5 in December, up from 87.6 in November, the Asian Confidence Index also moved above 100 to 112.6 in December though the European Confidence Index decline, staying below 100 in December at 87.2, according to State Street.

That suggests that as the new year begins, institutional investors appear likely to allocate more of their portfolios to equities in the United States and in Asia, but not in Europe.

SPORTS: Orlando Magic

In the NBA, the Orlando Magic are the league’s only team to start the year 4-0 though the Atlanta Hawks could join the Magic with that same record if they beat the Brooklyn Nets tonight.

In any case, Orlando’s strong start to the season has been led in part by Markelle Fultz, the former top overall pick from the NBA Draft in 2017.

Fultz struggled in his first two years with the Philadelphia 76ers, the team that drafted him.

However, in the past two seasons, Fultz has emerged as a key player for the Magic — he’s averaging 18 points and nearly six assists a game so far this year.

The Magic play the 76ers tomorrow night, which could mean that Fultz might help lead Orlando to its fifth consecutive victory of the year against his former team.

Pink's Bottom Line

Orlando has a very deep roster, including quality players like Terrence Ross, Aaron Gordon and Nikola Vucevic in addition to Fultz.

While it’s still very early in the season, the Magic do look like they could be a playoff team again — and even win a series — in the Eastern Conference this year.

In fact, I suspect that the Magic just might emerge as the surprise team of this NBA season.

(Note: Orlando lost in the first round of the playoffs last season to the Milwaukee Bucks.)

---

Jeremy Pink is COO of Geniecast, a leading virtual content and experience company, and he is also currently an advisor to companies in the media and financial tech sectors. Jeremy is the 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, and he 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)