Pink's Bottom Line on Media, Money and Sports

Television set sizes, consumer spending and two NBA contenders

In today’s newsletter, I discuss the sizes of television sets, consumer spending and two emerging NBA contenders.

MEDIA: Television Set Sizes

Americans are buying more televisions and they’re also buying bigger ones, according to data from the NPD Group, a research, data and analytics firm.

So far, this year, consumers have purchased 19% more television sets than they did last year, and in 2020, 21% of all sales of televisions were for sets that were 65” or larger, up from 18% last year, according to NPD.

Pink's Bottom Line

Americans have spent a greater amount of time in their homes in the past year due to the coronavirus pandemic, and that has likely created more demand for television sets as consumers seek entertainment options from their own living rooms.

Additionally, because of the explosion in popularity of video streaming services, which are available on Smart TVs or via third party hardware, consumers appear to have opted for larger sets to consume that content.

As we head into 2021, we will look back back on 2020 at just how disruptive the pandemic was for just about everything and at just how prevalent video streaming services have become.

MONEY: Personal Income, Consumer Spending

Personal incomes declined in November and consumer spending also fell for the first time since April, according to data released today by the Commerce Department.

Incomes fell 1.1% last month compared to a month earlier, while consumer spending — called personal consumption expenditures (PCE) in this government report — slipped 0.4% in November compared to October.

Pink's Bottom Line

Both lower personal incomes and weaker consumer spending are worrying signs for the health of the overall economy.

As consumer spending accounts for about 70% of total US economic activity, any decline in spending could potentially have some negative consequences.

As coronavirus cases reach record levels and as many Americans are staying at home this holiday season, December’s spending numbers could also be weak, which does not bode well for the economy in the beginning of the new year.

SPORTS: Mavericks and Suns

It’s the second day of the NBA’s regular season, and tonight’s game between the Dallas Mavericks and the Phoenix Suns could give us a glimpse in to two teams who each could challenge the Los Angeles Lakers for the Western Conference championship.

Dallas brings back MVP favorite Luka Doncic, who has put up historic numbers in his first two NBA seasons. He will be joined by Kristaps Porzingis, another all-star, when he returns from injury.

Those two players along with a strong complement of role players and a solid bench make the Mavericks formidable contenders.

Pink's Bottom Line

Phoenix, for its part, brings in veteran guard Chris Paul to its roster alongside Devin Booker, one of the top young players in the league.

The Suns also showed a lot of promise at the end of last season, winning the last ten games that they played.

Of the two teams, I like the Suns’s chances to make some noise this postseason a bit more than the Mavericks, but I do believe that in the longer term Dallas will emerge as a perennial championship contender as Doncic gets more experience and as the Mavericks find key, complementary players around him.

---

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)