Pink's Bottom Line on Media, Money and Sports
In the zone, hotel occupancy and an unusual sports calendar.
If you’re searching for something new to watch on Netflix, I suggest Giri/Haji, a crime/suspense drama focusing on a Tokyo detective that's set mostly in London. If you’re a sports fan, though, you will have plenty of other viewing options this fall, which I discuss in today’s newsletter.
MEDIA: In the Zone
In another sign that soon there might be a change in how viewers watch marquee sports in the future, Bloomberg is reporting that sports streaming service DAZN is seeking more money to fuel its operations — the company is looking for upwards of $1 billion, according to the Bloomberg article.
DAZN, pronounced “da zone” not “day’s in,” has been around for about four years, and in its current form since 2018. Its business is essentially to buy live sports rights, stream those events and charge consumers a monthly fee to subscribe to watch them.
Pink's Bottom LineDAZN has emerged as a real player in the sports rights arms race. The company, along with tech giants like Amazon and Twitter, appears poised to challenge traditional broadcasters in the United States for key sports rights, particularly if it has a cash infusion to help make deals happen.
As some major sports rights expire, it will be interesting to watch DAZN’s strategy in the United States.
In particular, I’ll closely watch what DAZN does in relation to US Major League Soccer (MLS) rights, which expire in 2022. DAZN already holds rights to the MLS in several countries.
MONEY: Hotel Occupancy
There’s some modestly encouraging news from the hotel sector. Occupancy rates at the nation’s major hotels topped 50% for the first time since the middle of March, according to data from STR.
STR data shows that 50.2% of hotel rooms were occupied for the week ending August 15, compared to its nadir of 22% in mid-April. For the biggest 25 markets in the country, though, the occupancy rate stood at only 42.2% for the week ending August 15.
Pink's Bottom LineLike airline passenger traffic, hotel occupancy is a good proxy for business travel in general.
If we see these occupancy rates begin to move consistently higher in the major markets, then that could be one of the first indicators of a recovery in overall business travel.
I will also watch trends in hotel occupancy rates and airline passenger traffic together to see if they move in lockstep or if they diverge.
SPORTS: Unusual Sports Calendar
The coronavirus pandemic is upending the sports calendar this year. The Indy 500, traditionally a Memorial Day weekend event, happens this Sunday.
The Kentucky Derby will take place on the first Saturday of September this year, not the first Saturday in May as is the tradition.
The Masters golf tournament is being played in mid-November, not early April.
Of course, the NBA and NHL playoffs just started, and both usually end in June.
Don’t forget also that the NFL kicks off its season on September 10.
Pink's Bottom LineWhew. This fall will be a bonanza for sports viewers.
Despite a potential glut of sports programming, I expect television viewership to hold steady or improve from last year’s levels for all of these events — even those that are not traditionally held in these next few months.
Also, we should see a sharp increase in the total amount of money wagered on sports in the next few months compared to last year, simply due to the sheer volume of big events. That should be a positive for the overall sports industry.
Jeremy Pink is former CEO of Broadcast Sports International and a former CNBC executive in New York, London and Singapore. He currently serves as an advisor to companies in media, sports and financial tech.
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