In today’s newsletter, I discuss the focus on direct-to-consumer services in media, a surge in used car prices and a great boxing match this weekend.
MEDIA: Importance of Streaming
The coronavirus pandemic has acted as an accelerant to a trend that was already in full swing among media and tech companies — customer adoption of direct-to-consumer video streaming services like Disney+, Netflix, Peacock and Prime Video.
Now, Disney, one of the country’s largest media companies, says it’s reorganizing some of its operations to focus more on its direct-to-consumer strategy.
Disney says the success of its streaming service, Disney+, is a catalyst for this reorganization.
Pink's Bottom LineDisney’s move only confirms what already has been happening at a swift pace in the media market place.
Expect other large media and tech companies to consider shifting their corporate focus to direct-to-consumer services even more than they already have.
MONEY: Used Car Prices Jump Again
The headline number of today’s Consumer Price Index report looked relatively tame as the government reported that consumer prices rose 0.2% in September compared to August, and that prices at the consumer level were up 1.4% compared to a year ago.
However, if you look under the hood of that report, you’d find that used car prices surged, up 6.9% in September compared to August.
That’s the biggest monthly increase in used car prices since February 1969, more than 51 years ago, according to that report.
Pink's Bottom LineBecause of the pandemic, Americans are driving less and many have become more cost conscious.
That’s a perfect recipe to create increased demand for used cars, which pressures supply and ultimately causes those higher prices.
Expect this trend of higher used car prices to continue for the foreseeable future.
(Note: If you’re a subscriber to this newsletter, you know I’ve been focused on surging used car prices. Click here and here to read my recent thoughts on the topic.)
SPORTS: Excellent Boxing Match
While next Saturday’s sports calendar will feature college football and the major league baseball playoffs, I think the most intriguing event of the day will be a boxing match that should unify the world lightweight championship.
Vasiliy Lomachenko, the WBA and WBO lightweight champion, faces American Teofimo Lopez, the IBF lightweight title holder, Saturday night in Las Vegas.
Pink's Bottom LineMany boxing experts consider Lomachenko, 32, as the best boxer in the world, and, according to FanDuel Sportsbook, he is a -430 favorite to win the fight against Lopez.
Lopez, 23, is much younger and less experienced, but he’s already put together a 15-0 record as a pro, including 12 knockouts.
I expect Lomachenko to win in a very entertaining match, which will be widely available to watch as it’s live on ESPN and not a pay-per-view event.
(Note: For those unfamiliar with sports betting -430 means that if a bettor wagers $430 on Lomachenko and Lomachenko does beat Lopez, the bettor would win $100.)
Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he led 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. Jeremy currently serves as an advisor, consultant or board member to companies in New York, London, Hong Kong and Dubai in the media, technology, sports and financial tech sectors.
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