Pink's Bottom Line on Media, Money and Sports
Discovery and streaming, home prices and the NBA in New York
In today’s newsletter, I discuss the strong performance of Discovery’s streaming service, the strong US housing market and the two strong NBA teams in New York.
MEDIA: Discovery Earnings
Discovery, a global media company that produces thousands of hours of original programming each year and that has a number of popular pay television networks, reported earnings Monday. (Click here to read the company’s earnings press release.)
Notably, as part of that earnings release, Discovery said that its new discovery+ streaming service, which launched last month in the United States, now has 11 million paid subscribers globally, and the company expects that number to reach 12 million by the end of this month.
Pink's Bottom Line
The early success of discovery+ shows yet again just how strong the video streaming market — both domestically and globally — has become.
As the year progresses, though, expect that the overall video streaming market to become saturated and for growth in paid subscribers to slow.
If that does indeed happen, expect price pressure for some video streaming services though discovery+ might not feel that pressure as its content focus is different from most other streaming services in the market.
MONEY: Home Prices
Home prices are still climbing, according to the S&P CoreLogic Case Shiller Index, a widely followed gauge of home prices in the United States, suggesting that the housing market’s recent strong performance still shows no meaningful signs of a slowdown.
According to that index, which was released today, home prices rose 10.4% in December, the most recent data available, compared to December of 2020.
Interestingly, among the larger cities measured by this index, three cities in the western part of the country — Phoenix, Seattle and San Diego — posted the biggest annual gains.
Pink's Bottom Line
The gains weren’t just in the west — housing prices increased in all major regions of the United States, according to that index.
During the coronavirus pandemic, the housing market has shown strength compared to other parts of the US economy, and that relative outperformance has underpinned the overall economy recovery.
Assuming that mortgage rates remain at historic lows and assuming that other segments of the economy begin to recover more quickly, expect the housing market to remain strong at least through the end of the year.
SPORTS: NBA in New York
If the NBA’s Eastern Conference playoffs were held today, the Brooklyn Nets, the current second seed in the East, and the New York Knicks, the seventh seed, would meet in the first round of the playoffs.
(Note: I am not considering a planned play-in tournament for teams seeded seven through ten in each conference this year — I am assuming the Knicks will earn the seventh seed.)
If that series between the Nets and Knicks were eventually to happen, it would showcase two vastly different teams and styles, and it would captivate all of New York.
Pink's Bottom Line
The Nets have built their team through the acquisition of star players Kyrie Irving, Kevin Durant and James Harden, and the team boasts perhaps the most explosive offense in the entire NBA.
Meanwhile, the Knicks have relied on fewer stars, and have built their team mostly through the draft. Additionally, the Knicks are a defensive-minded team which is a reflection of their new head coach, Tom Thibodeau.
I expect the Nets to win the Eastern Conference — its three core superstar players will simply overwhelm the rest of the teams in the conference.
Also, it wouldn’t be out of the question for the Knicks to win a series in the playoffs, though that wouldn’t happen if they drew the Nets in the first round.
Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. 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)