Pink's Bottom Line on Media, Money and Sports
Big week of media earnings, gasoline prices and college football favorites this season
In today’s newsletter, I discuss a big week of media earnings, gasoline prices and college football favorites this season.
MEDIA: Big Week of Media Earnings
There are a slew of earnings reports scheduled this week from many of the country’s traditional media companies.
Discovery reports earnings tomorrow. On Tuesday, local television companies Nexstar and Sinclair report as does Fox Corp. On Wednesday, it’s ViacomCBS and News Corp.
(Note: I found these scheduled earnings reports using Aiera, a company that provides event intelligence and insights for investors. I have served as an advisor to Aiera in the past.)
Pink's Bottom Line
While there are a number of other media companies reporting earnings this week, these reports that I’ve highlighted should give an indication of how media companies are faring in two key areas.
First, reports from Discovery and ViacomCBS will give insight in to how newer video streaming services like Discovery+ and Paramount+ are performing.
Second, all of these reports together will shed light on the strength of both the local and national advertising markets.
Expect these video streaming services to show solid gains in subscribers though not at a breakneck growth rate.
Likewise, overall advertising will show solid growth compared to last year though expect the outlook for the rest of the year to be mixed.
MONEY: Gas Prices
The average price of a gallon of regular gasoline climbed again in the latest week, according to AAA.
A gallon of regular now cost a national average of $3.17, up sharply from the beginning of May when a gallon cost $3, according to AAA.
For some context, the average price of a gallon of gas was 99 cents lower one year ago during the early stages of the pandemic.
Pink's Bottom Line
Consumer demand for gasoline should slow down in the few weeks as the peak summer driving season ends.
As such, that potentially reduced demand eventually could lead to lower prices at the pump.
However, don’t expect lower gasoline prices any time soon even with muted consumer demand as oil prices currently showing no signs of moving lower.
SPORTS: College Football Favorites
The college football season begins at the end of this month, and some familiar names are favored to win the national championship again this year.
According to FanDuel Sportsbook, Alabama at +250 is favored to repeat as national champs. Clemson is the second favorite at +400 while Georgia at +500 and Ohio State at +600 are the third and fourth favorites, respectively.
Pink's Bottom Line
Notably, five of the top nine favorites to capture the national title are from the SEC — if Oklahoma is also included, as the Sooners will soon join the SEC along with Texas, that would mean six of the top nine teams are essentially from the SEC.
That demonstrates the outsized strength of the SEC compared to other conferences when it comes to college football.
As the SEC will only get stronger with the coming additions of Oklahoma and Texas, look for other major conferences — especially the Big Ten and the ACC — to consolidate in some fashion probably by the end of the year.
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)