In today’s newsletter, I discuss video gaming revenue, the future of oil prices and the NBA’s new season.
MEDIA: Video Gaming Revenue
Consumers are spending more money on video games across all types of platforms, according to a report from Newzoo, a gaming research company.
Newzoo estimates that total video game revenue will soar this year, approaching $175 billion, which represents a growth of more than 19% on a year-over-year basis.
All three gaming platforms — pc, mobile and console — will show increases in revenue, according to Newzoo.
Pink's Bottom LineNewzoo says that the impact from coronavirus, as consumers stayed home more, helped boost revenues sharply this year, and it still expects video gaming revenue to climb from about $175 billion this year to nearly $218 billion in 2023.
That’s a powerful trend and one that shows no real signs of slowing down in any meaningful way any time soon.
MONEY: Oil Prices
As the world learned of Pfizer’s promising COVID-19 vaccine trials earlier today, the Dow and the S&P 500 stock indices climbed in response and finished the day with healthy gains.
Also, oil prices jumped today as a key oil futures contract —December West Texas Intermediate — traded above $40 per barrel. By comparison, oil began 2020 trading above the $60 per barrel price point.
Pink's Bottom LineAs the pandemic potentially recedes thanks to the promise of a vaccine, business travel should begin to resume, and more people will likely be driving their cars for both work and leisure.
As such, those actions will eventually create renewed demand for oil, and that’s most likely what led to today’s increase in prices.
The key question now is whether that renewed demand for oil will decline, stabilize or grow on a much longer term basis.
SPORTS: NBA Season
Although the Los Angeles Lakers won the NBA title only four weeks ago, the NBA is already gearing up to get the next season started about six weeks from now.
The NBA and the leagues’ players agreed last week to start the regular season, which will consist of 72 games not the normal 82, on December 22 in part to capture a traditionally strong Christmas Day television viewing audience.
Pink's Bottom LineThe quick turnaround could impact the top teams like the Lakers and the Miami Heat, LA’s opponents in the NBA Finals, as those teams would have less rest and time to recuperate in what amounts to a very shortened offseason.
It could also impact other teams like the Boston Celtics and Denver Nuggets who made deep runs into the playoffs.
However, as the playoffs won’t begin until next spring, I suspect the quick turnaround won’t cause any real issues as the teams will quickly figure out how to adapt.
As of right now, I like the Lakers or the Golden State Warriors to win the NBA title in 2021 though one team, the Lakers, will have a very short offseason, and one team, the Warriors, will enjoy a lengthy respite.
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)