Pink's Bottom Line on Media, Money and Sports
Box office blues, holiday shopping and the NBA Draft
I have some personal news — I recently agreed to become COO of Geniecast, a leading virtual content and experience company. Here’s the press release on my appointment.
Please note that I will keep writing and publishing this newsletter even after I join the team at Geniecast in December.
Now, here’s today’s edition.
MEDIA: Box Office Blues
There’s more evidence that the movie theater business is still struggling mightily even as the traditionally strong Thanksgiving box office weekend is just around the corner.
According to data from Box Office Mojo, domestic box office grossed $11.4 million this past weekend, up 3.5% from last week, but down a staggering 89% from the same weekend a year ago.
Pink's Bottom Line
The domestic box office is suffering as moviegoers are reluctant to go to theaters because of the pandemic, and because studios simply aren’t releasing as many movies.
As coronavirus cases surge to record levels, I don’t expect to see much of an improvement at the box office for Thanksgiving weekend or, for that matter, Christmas weekend, which is usually one of the biggest weeks of the year for the movie industry.
MONEY: Holiday Spending
Consumers will spend about 6.4% less this year on holiday shopping than they did last year, according to the NPD Group, a market research firm.
NPD estimates that the average consumer will spend $691 on holiday shopping this year, down from $740 last year, but roughly the same as what was spent in 2018.
Additionally, with shoppers reluctant to go to physical stores because of the coronavirus, online shopping, not surprisingly, will be front and center in most consumers’ holiday shopping plans this year, according to the NPD Group.
Pink's Bottom Line
While the coronavirus appears to be an accelerant to the wider adoption of online shopping this holiday season, it looks like it won’t mitigate the weaker spending elsewhere.
As consumer spending accounts for about 70% of economic activity in the country, slower holiday spending this year could potentially hamper the country’s nascent economic recovery.
SPORTS: NBA Draft
In about 48 hours from now, we’ll know the top pick of this year’s NBA Draft, which is being held Wednesday night.
While there is no consensus number one pick and it doesn’t appear that there is any transcendent talent this year, I do think this year’s draft could have major implications for the NBA this season.
That’s because the Golden State Warriors, one of the favorites to win the NBA title in 2021, hold the number two pick in the draft.
I am anticipating that the Warriors will either trade that pick for an established NBA player or draft a player — possibly James Wiseman, a center from Memphis, if he’s available — who could have an immediate impact for Golden State.
Pink's Bottom Line
In either case, Golden State is in a position to markedly improve its already talented roster.
Importantly, if the Warriors do keep their number two pick, that player won’t have to carry the burden of a franchise like most top picks who are generally drafted by the weakest teams.
The Warriors certainly are the team to watch in this year’s draft, and they are in a very strong position to boost their chances to challenge for the NBA title this season.
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is 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. Jeremy 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)