Pink's Bottom Line on Media, Money and Sports
Pay television subscribers, earnings from retailers and a men's player to watch in the French Open tennis tournament
In today’s newsletter, I discuss the decline in pay television subscribers, the earnings strength of two major retailers and a men’s player to watch in this year’s French Open tennis tournament.
MEDIA: Pay Television Subscribers
The number of traditional linear pay television subscribers — primarily cable and satellite subscribers — declined again in the first quarter, according to data from the Leichtman Research Group.
The total number of pay tv subscribers declined by 1.895 million in the first three months of the year, slightly less than the 1.955 million who cut the cord in the first quarter of 2020, according to that data.
Pink's Bottom Line
Notably, the number of subscribers of Internet-delivered equivalents of cable and satellite pay television — like Hulu + , Live TV and Sling — also declined last quarter, according to this data.
The data suggests that while the pace of cord-cutting appears constant, subscriptions to traditional linear pay television remain in a secular decline.
It’s yet another reason why the media industry is focused on video streaming, which, unlike traditional linear tv, is growing rapidly.
MONEY: Earnings from Retailers
Both Walmart and Target, two of the country’s biggest retailers, reported strong quarterly earnings this week.
Walmart reported strong sales, particularly in e-commerce, and the company boosted its outlook for the rest of the year.
Target reported that sales rose a robust 22.9% in its most recent quarter, and the retailer also appeared confident about its performance for the rest of the year.
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These two earnings reports are encouraging for the overall economic recovery in the United States as retail spending accounts for about two-thirds of all economic activity in this country.
Additionally, as both Walmart and Target appear positive about the retail environment for the rest of the year, that suggests that the economic recovery might just be at a beginning stage.
SPORTS: French Open Men’s Tennis
Spain’s Rafael Nadal, winner of 13 French Open men’s tennis titles, is the clear favorite to win the tournament, which begins Monday, again this year.
According to FanDuel Sportsbook, Nadal is -125 to capture his 14th French Open title. World number one Novak Djokovic is the second favorite at +440 to win it.
Pink's Bottom Line
Greece’s Stefanos Tsitsipas, currently ranked 5th in the world, is a player to watch in this year’s tournament.
Tsitsipas has had a good spring season season including losing to Nadal in a tight three set match in the final of the Barcelona Open in April.
The Barcelona Open, like the French Open, is played on clay courts where Nadal has been so dominant.
Tsitsipas showed that he can hold his own against Nadal on that surface, and the world number five could definitely play deep into the second week at the French Open.
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)