In today’s newsletter, I discuss Spotify’s latest podcasting move, Singles Day in China and Premier League soccer.
MEDIA: Spotify and Podcasting
Spotify made another move into the world of podcasting this week, announcing that it will buy Megaphone, a podcast advertising company.
That move follows on the heels of a couple of other moves made by Spotify recently, including last year’s purchase of Gimlet, a podcast creator, and this year’s acquisition of The Ringer, another podcasting content company.
Additionally, Spotify recently signed Joe Rogan, a leading podcaster, to a large deal that gives Spotify rights to Rogan’s content.
Pink's Bottom LineMeanwhile, Spotify’s premium subscription business is growing nicely, up 27% to 144 million subscribers last quarter compared to the third quarter of 2019, according to the company’s quarterly earnings report that it released a couple of weeks ago.
The company’s focus on advertising, particularly in podcasting, with the acquisition of Megaphone is notable as it appears that Spotify is looking to build out that revenue stream aggressively in addition to its already very successful subscription offering.
MONEY: Singles Day
While today is Veteran’s Day in the United States, it is Singles Day in China, a holiday that celebrates those who are not in a relationship.
It happens on November 11 every year — on 11/11. Get it? Singles Day?
In any case, in 2009 China online retail giant Alibaba started a massive annual retail sale on Singles Day — it is similar to Amazon’s Prime Day in the United States, for example.
Pink's Bottom LineThe Singles Day shopping event has become one of the biggest retail events of the year in China, and this year looks like no exception.
Sales appear to be hitting record levels for Alibaba this year though its Singles Day sale has turned into a Singles Days sale in 2020 as the event actually began on November 1 this year.
Importantly, though, the Singles Day sale’s success this year underscores the fact that the Chinese consumer looks resilient even as the global coronavirus pandemic surges and as it impacts consumer sentiment elsewhere in the world.
SPORTS: Premier League Soccer
The Premier League, the UK’s globally popular soccer league, will abandon plans to charge for some matches on a pay-per-view basis in the UK as fans there balked at the prospect.
There is strong demand from viewers to watch additional matches that aren’t already on the main television networks there as, due to the coronavirus pandemic, fans haven’t been able to watch any matches in person this season.
Pink's Bottom LineThe Premier League will have to find an alternative to its pay-per-view plan in its home market in order to satisfy the rabid fan base there though it’s unclear at the moment just how the league will resolve this issue.
While the Premier League already generates enormous sums of money in the UK and from around the world for the rights to broadcast its soccer matches, it will be very tricky for the league to generate incremental revenue in the UK without further alienating its fan base.
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)