Pink's Bottom Line on Media, Money and Sports

Top items and takeaways of the week from the worlds of media, money and sports

Here are the top items and takeaways of the week from the worlds of media, money and sports.

MEDIA

• Netflix had eight of the ten most streamed productions among all video streaming services in the first week of January, according to Nielsen data.

  Pink’s Bottom Line: While competition intensified among video streamers since the pandemic began, Netflix has maintained its dominance and will continue to do so for the foreseeable future.

• Speaking of Netflix, the company said this week that it struck a deal to feature electric vehicles from General Motors in future productions on the video streamer.

  Pink’s Bottom Line: It’s an innovative deal that will generate much needed revenue for Netflix, which is looking to advertising to diversify its revenue streams.

• The Dr. Phil show, one of the most popular syndicated programs on American television, will ends its 21-year run at the end of this season.

  Pink’s Bottom Line: It’s the latest sign that syndicated programming, once an unassailable revenue generator for traditional linear television, is diminishing in importance in today’s media landscape.

MONEY

• Alphabet, the parent company of Google, reported weaker than expected earnings this week, but notably the company also said that it will begin to detail its activities and investments in Artificial Intelligence (AI) in subsequent earnings reports.

  Pink’s Bottom Line: Google’s move to disclose its AI-related activities is significant as AI represents the first meaningful existential threat to the company in its history.

• If you’re throwing a Super Bowl party this year, you might want to serve chicken wings and guacamole as prices of wings and avocados are down sharply compared to a year ago.

  Pink’s Bottom Line: Food costs overall, though, are still nearly 12% higher compared to a year ago, as inflation will spa the buying power of consumers at least until the end of the year.

• Jeremy Grantham, co-founder of investment firm GMO and a notable Wall Street bear, wrote a letter to investors last month that said the S&P 500 could decline by as much as 50% this year though his base-case scenario has the S&P, which currently stands at about 4,100, falling to 3,200 by year-end.

  Pink’s Bottom Line: I’ve followed Grantham for years, and he often offers prescient analysis that is directionally correct.

SPORTS

• In the NBA, Kyrie Irving of the Brooklyn Nets is reportedly seeking a trade from the team by next week’s trading deadline.

  Pink’s Bottom Line: While speculation will run rampant that Irving will join the Los Angeles Lakers and LeBron James, look for the Nets to move him elsewhere, if at all.

• In the NFL, following this week’s retirement of Tampa Bay quarterback Tom Brady, who many expected to become a Las Vegas Raider this offseason, look for Jimmy Garoppolo of the San Francisco 49ers to go to Las Vegas instead.

  Pink’s Bottom Line: Garoppolo now is the best veteran quarterback likely available, and he will generate considerable interest among a few teams, but he will go to Las Vegas to join head coach Josh McDaniels, Garoppolo’s former offensive coordinator in New England.

• In women’s college lacrosse, North Carolina this week named Erin Matson, 22, its new women’s lacrosse head coach.

  Pink’s Bottom Line: Matson just finished her lacrosse playing career at North Carolina just last year where she led the team to four national titles — it is a truly inspired and progressive hire by the university.

---

Jeremy Pink consults for media, sports and tech companies around the world. He 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. He is also a former CNBC television executive in New York, London and Singapore. He started his career as a sportswriter for two newspapers in Columbus, Ohio.

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)