In today’s newsletter, I discuss podcasting, retail sales and the teams favored to win the World Series this year.
MEDIA: Podcasting
There’s more mergers and acquisitions activity related to the nation’s red hot podcasting industry.
Today, iHeartMedia, a large, diversified audio company that has radio broadcast stations, publishes podcasts and more, said it will acquire Triton Digital, a company that provides audio technology and advertising services for podcasters and the entire digital audio industry.
It appears that this deal is yet another sign that a major audio company — in this case, iHeartMedia — is making a move as it pertains to the podcasting business.
Pink's Bottom Line
Late last year, iHeartMedia, which says it is the top publisher in the country of podcasts, purchased Voxnest, a company also focused on podcasting. It also bought Stuff Media, another podcasting company, in 2018.
While it seems that the purchase of Triton Digital will help across the entire portfolio of iHeartMedia’s audio businesses and not just its podcasts, iHeartMedia, like many other companies, appears to see podcasting as a growth area.
As such, expect podcasting competition to intensify even more this year and expect even more consolidation within the industry to occur.
MONEY: Retail Sales
Retail sales nationwide rose sharply in January compared to December, following three consecutive monthly declines in sales during the critical holiday shopping period.
According to a government report today, retail sales jumped 5.3% last month compared to December, and rose 7.4% on a year-over-year basis.
Retail sales can account for upwards of 70% of all economic activity in the United States so they are vitally important to the country’s overall economic health.
Pink's Bottom Line
Notably, retail sales in January rose in conjunction with the release of government stimulus checks indicating that consumers spent some of that stimulus money.
It also suggests that the government’s next stimulus package, which likely will provide even larger stimulus checks to consumers, could deliver an even bigger boost to retail sales in the coming months.
That, in turn, could provide a significant jolt to the overall economic recovery in the country.
SPORTS: World Series Favorites
With baseball spring training just now beginning, the Los Angeles Dodgers, defending World Series champions, are the favorite to win it all again this season.
According to FanDuel Sportsbook, the Dodgers are +350 to win the World Series this year, followed by the New York Yankees at +550 and the San Diego Padres at +800.
(Note: The Dodgers at +350 means that if a bettor wagers $100 on Los Angeles to win the World Series and the Dodgers do indeed win, that bettor would win $350.)
Pink's Bottom Line
It is not surprising that the two teams favored to win the World Series both come from the nation’s two biggest media cities.
Baseball has become an increasingly regional sport, and only a few teams — like the Dodgers and Yankees — attract national interest and can truly support large payrolls.
That’s why I suspect that the Dodgers and Yankees — as well as few other major market teams — will remain perennial favorites to win the World Series for the foreseeable future.
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)