Pink's Bottom Line on Media, Money and Sports

Netflix price hike, retail sales and Australian Open men's tennis

In today’s newsletter, I discuss a Netflix price hike, retail sales and Australian Open men's tennis.

MEDIA: Netflix Price Hike

Netflix is increasing the prices of its subscription services in both the United States and Canada.

According to the company’s website, the standard plan in the United States, for example, now costs $15.49 per month, up from $13.99 per month.

Pink's Bottom Line

With the competition among streaming services intensifying, the need for original productions, which are expensive, has never been greater.

That’s because original productions drive viewership and differentiate streaming services from one another.

As such, the price hike from Netflix likely reflects the amount of the money the company plans to invest in original productions, and it also suggests that other streaming services might also soon increase subscription prices.

MONEY: Retail Sales

Retail sales declined sharply in December, according to a government report released on Friday.

Sales fell 1.9% in December compared to November, though sales are still 16.9% higher in December of 2021 compared to December 2020.

Pink's Bottom Line

Notably, adjusted sales of non-store retailers, essentially e-commerce, fell 8.7% in December compared to November.

That indicates that the explosive growth in e-commerce sales, which occurred at the onset of the pandemic, is slowing at least in the short term.

SPORTS: Australian Open Men’s Tennis

The Australia Open, the first tennis major of the year, begins tomorrow, and the men’s side of the draw is more open than usual now that world number one Novak Djokovic won’t be playing in the tournament.

In fact, this will be the second major tennis tournament in a row where a player from the latest generation of players will likely capture the title.

Pink's Bottom Line

According to FanDuel Sportsbook, world number two Daniil Medvedev is the favorite at +145 to win the Australian Open, world number three Alexander Zverev is the second favorite at +270 while 20-time major winner Rafael Nadal the distant third favorite at +750.

Medvedev in particular has a game that’s suited well for hard courts, and his draw looks favorable despite a potential second round clash against the always dangerous Nick Kyrgios.

Look for Medvedev to win the Australian Open this year, and capture his second consecutive major title following his US Open victory last September.

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Jeremy Pink is currently an advisor to media and fintech 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.

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)