Pink's Bottom Line on Media, Money and Sports

Netflix earnings, China's economy and a surprising NBA scoring leader

In today’s newsletter, I discuss Netflix earnings, China’s economy and a surprising NBA scoring leader.

MEDIA: Netflix Earnings

Netflix reported earnings today after the markets closed, and the video streaming service’s numbers did not disappoint investors.

The stock price of Netflix surged in after hours trading following the company’s earnings report that revealed that its subscriber base grew again last quarter — now topping the 200 million total paid subscriber mark.

The company’s revenues also soared for the year — up 24% to $25 billion in 2020 compared to 2019.

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It has been an extraordinary past year for Netflix as the company has seen its paid subscriber numbers climb as more consumers signed up for the service during the pandemic, which forced many to stay at home and seek entertainment for much of the past ten months.

Notably, Netflix is still growing on both the revenue and subscriber fronts despite the increased competition from services like Disney+ and Peacock.

If the company can continue to deliver new and original content that resonates with viewers, it could maintain its growth in 2021 — albeit likely at a slower pace — despite that increased competition.

MONEY: China Economy

As many economies around the world contracted last year against the backdrop of the global pandemic, China says that its economy grew in 2020.

According to government statistics from China released today, the country’s economy expanded 2.3% in 2020 compared to 2019.

China’s government says that while the economy contracted 6.8% in the first quarter of last year, it grew each of the remaining three quarters of the year, culminating with a 6.5% increase in the fourth quarter.

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Interestingly, while the economy as a whole expanded, consumers in China actually spent less money — retail sales fell 3.9% on an annual basis, according to those government statistics.

That suggests that consumption at the consumer level — a barometer of the true strength of the domestic economy in China — still hasn’t fully recovered from the impact of the pandemic.

SPORTS: NBA Scoring Leader

With a couple of exceptional performances by Kevin Durant of the Brooklyn Nets in his past two games, I checked to see where he ranked among the NBA’s leading scorers this season.

Not surprisingly, Durant is scoring the second most points in the league, but the NBA’s leading scorer at the moment surprised me — it’s Bradley Beal of the Washington Wizards who is averaging 34.9 points per game, more than four points a game more than Durant.

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It has been a rough year for Beal and the Wizards so far. Five straight Washington games have been postponed due to coronavirus issues — the team hasn’t played a game in over a week — and the Wizards have the second worst record in the entire league.

However, if Beal continues to score effectively and if the Wizards don’t show signs of improvement, I expect an NBA title contender to trade for Beal.

Such a trade could have a significant impact on the NBA title race if Beal lands in the right situation.

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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)