In today’s newsletter, I discuss Disney, DoorDash and Big Ten football.
MEDIA: Disney and Streaming
It’s been almost exactly one year since Disney launched its Disney+ video streaming service, and the company says that total subscribers for Disney+ now hover around 74 million, well above the company’s initial expectations.
Disney, which reported earnings Thursday, is looking at all of its video streaming services — Disney+, ESPN+ and Hulu — as engines of growth.
However, the coronavirus did negatively impact a portion of Disney’s overall business last quarter as revenue declined sharply in its theme parks unit.
Pink's Bottom Line
Still, the company’s direct-to-consumer strategy looks like it will remain a priority for Disney in the coming years.
Said Disney CEO Bob Chapek in Friday’s quarterly earnings press release, “The real bright spot has been our direct-to-consumer business, which is key to the future of our company.”
That supports the overall trend in media as companies are looking to connect directly with consumers rather than go through conduits — think cable boxes or move theaters — to deliver their content.
MONEY: DoorDash IPO
The nation’s red hot Initial Public Offering (IPO) market looks like it will add another big name to the recent list of well known companies with plans to go public.
DoorDash, the ubiquitous food delivery service, on Friday filed to go public, and many got their first glimpse at the private company’s rapidly growing business.
(Click here to read the DoorDash IPO prospectus and to learn why Co-Founder and CEO Tony Xu wrote, “We started DoorDash to help people like my Mom.”)
Pink's Bottom Line
While the coronavirus pandemic has negatively impacted many businesses, DoorDash has been a beneficiary as consumers place more orders for food delivery as they go out less and stay at home more.
DoorDash’s growth could continue for the near term as the number of coronavirus cases surge in the country and the stay-at-home trend persists.
For the longer term, the trick for DoorDash will be whether it can retain those consumers who are frequently ordering food delivery now but who could change their behavior as the pandemic recedes.
SPORTS: Big Ten Football
It’s the middle of November, and rather astonishingly, two of the Big Ten college football conference’s traditionally strong programs, Michigan and Penn State, have one win between the two of them.
While that lone win between the two programs is somewhat a function of a truncated schedule due to a delayed start to the season caused by the coronavirus, it is sill jarring to see those two teams with a combined record of 1-7 so far.
Perhaps equally as jarring is to see that the combined record of two of the conference’s usually middling teams — Indiana and Northwestern — is 8-0.
Pink's Bottom Line
Some semblance of normalcy will likely resume in the Big Ten when all is said and done this season as traditional powers Ohio State and Wisconsin are each currently unbeaten — although they have only played a combined five games.
Additionally, we should have a much clearer picture of this season’s true Big Ten frontrunners as soon as next weekend. That’s when Ohio State — favored by 20.5 points according to FanDuel Sportsbook — hosts Indiana, and when Wisconsin — favored by 6.5 points according to FanDuel Sportsbook— plays at Northwestern.
With apologies to all subscribers who attended Indiana or Northwestern, I expect Ohio State and Wisconsin to each win next weekend, and ultimately to meet in December’s Big Ten conference championship with the winner of that game most likely making it to the College Football Playoff.
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)