Pink's Bottom Line on Media, Money and Sports
Video consumption gauge, small cap stocks and the NBA Finals
In today’s newsletter, I discuss a gauge of video consumption in the United States, small cap stocks and the NBA Finals.
MEDIA: Video Consumption Gauge
Streaming accounted for a greater percentage of total video consumption in June than it did in May, according to Gauge, a product from Nielsen that provides a snapshot of total video consumption across broadcast, cable television and streaming.
Streaming accounted for 27% of total consumption in June compared to 26% in May, according to Gauge.
Cable television accounted for the greatest percentage of total video consumption in June at 40%, up from 39% in May, according to Gauge.
Pink's Bottom Line
Notably, broadcast television accounted for 23% of total viewing in June, down from 25% in May, according to Gauge.
That data shows that viewers are consuming more video from streaming services and cable television than from broadcast television, and that gap widened from May to June.
It will be interesting to see if that trend holds in July as broadcast television has two big sporting events this month — the NBA Finals and the Olympics.
I suspect that those events are likely to show that broadcast television will recover some of that lost ground this month.
MONEY: Small Cap Stocks
The Russell 2000, an index that measures the performance of small cap stocks in the United States, is down about 7.8% so far this month.
That compares to the S&P 500, a broad index of large cap stocks, which is down less than 1% over the same time period.
For the year to date, both indices have moved decidedly higher — the Russell is up 7.9% while the S&P is ahead 13.4% so far in 2021.
Pink's Bottom Line
In any case, the performance of small caps stocks, like those in the Russell 2000, sometimes can be a leading indicator for the rest of the stock market.
As such, it’s worth watching the performance of the Russell 2000 closely over the next few months.
It will be interesting to see if the Russell’s performance in these next few months will suggest an overall downward trend in the broader market or if it will simply indicate a continued recent underperformance of small cap stocks relative to their large cap peers .
SPORTS: NBA Finals
The Milwaukee Bucks Sunday night beat the Phoenix Suns in Game 5 of the NBA Finals to take a 3-2 lead in the best of seven series — the teams play Game 6 tomorrow night in Milwaukee.
According to FanDuel Sportsbook, the Bucks are now clear favorites at -380 to win the series and become NBA champions.
It is quite a turnaround for Milwaukee as the Bucks lost the first two games of the series and looked unlikely to recover from those two losses.
Pink's Bottom Line
The Bucks have been fortunate in their route to the precipice of the team’s first NBA title in 50 years.
They beat an injury depleted Brooklyn Nets team in the Eastern Conference Semifinals.
In the Eastern Conference Finals, Milwaukee defeated the Atlanta Hawks, an unlikely opponent that ousted the top seeded Philadelphia 76ers in the other Eastern Conference Semifinals.
That good fortune paired with great talent like Giannis Antetokounmpo, who is clearly the best player in the NBA Finals, will lead the Bucks to that elusive NBA championship.
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)