In today’s newsletter, I discuss the HBO Max video streaming service, retail sales in the United States and the NBA’s Brooklyn Nets.
MEDIA: HBO Max Subscribers
Jason Kilar, CEO of Warner Media, said he is forecasting that HBO Max, the video streaming service from AT&T’s Warner Media, will grow to 120 million subscribers worldwide by the end of 2025.
That’s well ahead of previous projections of 75 to 90 million subscribers by the end of 2025.
(Note: Kilar made those comments Friday during the AT&T Investor Day, and I found the transcript of his comments on Aiera, a financial services event access and monitoring platform, where I have worked as an advisor. )
Pink's Bottom LineAdditionally, Kilar said, “HBO Max attracts a considerably younger audience. Forty-three percent of HBO Max viewers are under the age of 35. 50% of the audience is female whereas HBO has historically had a slight male skew.”
It’s yet another sign of just how much traction video streaming services currently have, and Kilar’s comments also indicate strong growth prospects for a younger demographic for the next few years.
That said, I do suspect that, at least in the United States, video streaming could reach a saturation point as early as this year with consumers considering the proliferation of those services on the market.
MONEY: Retail Sales
The government reports retail sales numbers for February on Tuesday, and expectations are for a solid month of sales.
That follows a forecast by the National Retail Federation last month, which projected that retail sales will grow somewhere in the neighborhood of 6.5% and 8.2% for all of 2021.
Pink's Bottom LineRetail sales grew 6.7% last year, and 3.9% in 2019, according to the NRF, so a strong performance in 2021 would mean three solid years of growth.
It’s crucial to the nation’s overall economic recovery that retail sales show growth as consumer spending accounts for as much as 70% of overall economic activity in the United States.
If Tuesday’s retail sales report does indeed show solid growth, that’s a good indicator that the rest of this year could also be strong, especially as the government’s stimulus checks from its latest fiscal rescue package are already beginning to reach consumers.
SPORTS: Brooklyn Nets
As the NBA begins its stretch run to the postseason, the Brooklyn Nets look just about as strong as any team.
The Nets beat the Detroit Pistons last night, and Brooklyn now has won 12 of its past 13 games, which is even more impressive as Kevin Durant, one of the team’s superstars, has missed the past 11 games.
Additionally, the Nets just signed Blake Griffin, a six-time all- star, adding a top player to an already formidable roster that includes Durant, Kyrie Irving and James Harden.
Pink's Bottom LineAccording to FanDuel Sportsbook, Brooklyn now is +125 to win the Eastern Conference, and +300 to win the NBA title, which makes the Nets almost co-favorites with the Los Angeles Lakers who are +280 to win the NBA championship.
When Durant returns and if Griffin plays well and finds his spot in the team’s rotation, the Nets could even emerge as title favorites ahead of the Lakers before the postseason begins.
However, the Lakers, ultimately, are still the team to beat.
(Note: The Nets at +300 means that if a better wagers $100 on the Nets to win the NBA title and the Nets do win it, then that bettor wins $300.)
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)