Pink's Bottom Line on Media, Money and Sports
Pay-tv subscribers, retail sales and college football
In today’s newsletter, I discuss another decline in pay-tv subscribers, slower retail sales and an emerging team in college football.
MEDIA: Pay-Television Subscribers
The country’s biggest pay-television providers lost suffered more subscriber losses in the second quarter of the year, according to data from the Leichtman Research Group, a media research firm.
According to Leichtman, the top pay-tv providers lost a combined total of 1.23 million subscribers last quarter — for the past year, subscriber losses totaled 4.52 million.
Pink's Bottom LineNotably, all of the top cable and satellite providers lost subscribers last quarter while Internet delivered pay-tv services actually showed a slight net increase in subscribers for the quarter.
Still, the overall data is further evidence that traditional, linear pay-tv is struggling at the same time that video streaming is surging in popularity.
MONEY: Retail Sales
That follows a revised increase of 0.7% in retail sales for June compared to May, according to that government data.
Notably, sales of cars — and car parts — fell for the second consecutive month, indicating that higher car prices, particularly for used cars, might be dissuading consumers from making auto purchases.
Pink's Bottom LineThe overall decline in retail sales in July also signals that the Delta variant could be putting a damper on consumer sentiment.
As consumer spending accounts for roughly two-thirds of all economic activity in the United States, a decline in retail sales has widespread implications for the strength of the overall economic recovery.
As such, next month’s retail sales report will be very important to monitor to determine if July’s decline in retail sales is transitory or the beginning of a downward trend.
SPORTS: College Football Preseason Rankings
Alabama has once again claimed the top spot in the AP Top 25 preseason college football rankings.
Oklahoma is ranked second followed by Clemson and Ohio State, ranked third and fourth, respectively.
Those four schools — along with other teams from the SEC — have dominated college football since the College Football Playoff began seven years ago.
Pink's Bottom LineHowever, this year, a new team — Iowa State — looks like it just might crash the party and emerge as a legitimate contender for the national title.
Iowa State, coming off of a 9-3 record and a Fiesta Bowl victory last year, ranks 8th in the preseason poll, and also returns its terrific starting quarterback, Brock Purdy, plus a host of other top players.
If Iowa State wins a September game against intrastate rival Iowa, ranked 18th, and beats No. 21 Texas in November, the Cyclones will be in a great position to challenge Oklahoma for the Big 12 title and to earn a spot in the College Football Playoff.
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)