Pink's Bottom Line on Media, Money and Sports

Podcasting, jobless claims and the College Football Playoff

Thank you to everyone for your support of this newsletter, and I wish all of you a very happy and prosperous new year. Now, here’s the final newsletter of 2020.

MEDIA: Podcasting Acquisition

There’s more consolidation in the podcasting business as Amazon this week said it is buying Wondery, a large podcast production company.

(Note: Amazon paid roughly $300 million for Wondery, according to a story in The Wall Street Journal.)

It’s the latest in a number of deals in the podcasting industry as companies like Spotify and SiriusXM have also made acquisitions recently.

Pink's Bottom Line

It’s not surprising that the big tech and big media is focused on podcasting as the IAB U.S. Podcast Advertising Revenue Study that was released in July projected podcasting advertising revenues to approach the $1 billion mark this year, and to grow even more in 2021 and 2022.

As such, I suspect that we’ll see even more consolidation in podcasting in the next two years, and that we’ll also see a clear winner — or two — emerge as a result.

Also, that winner, more than likely, will come from big tech or big media.

MONEY: Jobless Claims

In perhaps the final economic report of 2020, the government reported that weekly US jobless claims slipped last week to 787,000 though the most recent four-week moving average remains stubbornly high.

Those jobless claims numbers come on the heels of a new fiscal stimulus package that will include an extension of unemployment benefits and an incremental federal weekly stipend of $300 for unemployed workers — all until the middle of March.

Pink's Bottom Line

As the coronavirus pandemic gets more under control in the first quarter, the economic recovery could pick up steam, which likely means more hiring of workers, particularly in the services sector that has been hardest hit by the pandemic.

However, if the economy does not show signs of strength, those jobless claims numbers will likely remain at elevated levels, and that will make additional fiscal stimulus measures in the first quarter necessary and crucial.

SPORTS: College Football Playoff

The College Football Playoff begins tomorrow afternoon with top seed Alabama playing Notre Dame, the fourth seed. Clemson, the number two seed, plays Ohio State, the third seed, tomorrow night.

According to FanDuel Sportsbook, Alabama is a 18.5 point favorite over Notre Dame, and Clemson is favored by 7.5 points against Ohio State.

Pink's Bottom Line

Those point spreads are significant as they suggest a disparity in the quality of teams in these College Football Playoff semifinal games, at least in the eyes of the sportsbooks.

In the short history of the College Football Playoffs, most semifinal games have indeed been lopsided, with a notable exception last year when Clemson beat Ohio State 29-23.

While both Alabama and Clemson likely will win their respective semifinal games, the contests will be closer than these point spreads indicate and that means both Notre Dame and Ohio State will cover.

---

Jeremy Pink is COO of Geniecast, a leading virtual content and experience company, and he is also currently an advisor to companies in the media and financial tech sectors. Jeremy 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, and 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)