Pink's Bottom Line on Media, Money and Sports
NBA Finals television viewership, the Robinhood IPO and the US men's national basketball team
In today’s newsletter, I discuss television viewership of the NBA Finals, the IPO of Robinhood and the the US men’s national basketball team’s stunning loss at the Olympics.
MEDIA: NBA Finals Viewership
Television viewership of this year’s NBA Finals increased sharply compared to last year, but viewership slumped compared to pre-pandemic levels.
According to an ESPN press release, viewership of this year’s NBA Finals six-game series between the Milwaukee Bucks and the Phoenix Suns on ABC averaged 9.9 million viewers according to Nielsen data.
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While those viewership number are up 32% compared to last year’s NBA Finals, they are down a steep 34% from 2019, according to Nielsen data as reported by the Sports Business Journal.
These viewership numbers show that major sporting events still attract a large audience on linear television compared to just about any other programming though these viewership numbers still are in decline on a long term basis.
Expect that trend to continue, which will ultimately put even more pressure on the traditional linear cable and satellite television business.
MONEY: Robinhood IPO
Robinhood, the ubiquitous free stock trading app that has stimulated retail investor interest during the pandemic, is slated to list its shares on the public markets on Thursday.
Robinhood’s initial public offering (IPO) could value the company in the neighborhood of $35 billion.
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The nation’s IPO market has been red hot for about a year now, and Robinhood’s IPO is one of the most anticipated listings in that time span.
While Robinhood’s stock price could increase sharply on its first day of trading this Thursday assuming its shares list then, it will be important to see its share price three or six months from now.
If Robinhood stock is trading well above its IPO price at the end of the year, that could be a signal that the bull market still has some legs.
SPORTS: US Men’s National Basketball Team
The US men’s basketball team shockingly lost to France Sunday in the first game of Group play in the Olympics.
It is the loss in the Olympics for Team USA since 2004, but the team should still get out of Group play and make it to the medal round.
In fact, according to FanDuel Sports, the United States remains the overwhelming favorite at -230 to win the gold medal.
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However, it is clear that the gap between the United States and the rest of the world in terms of basketball talent has shrunk dramatically over the years.
Additionally, the international game is different from the NBA game in two key ways — it is far more physical and it emphasizes size much more than the NBA game.
As such, the Team USA will have to adapt its game — particularly in the medal round — if it wants to bring home the gold for the fourth consecutive time.
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)