Pink's Bottom Line on Media, Money and Sports
Music streaming advertising, holiday spending and the College Football Playoff
In today’s newsletter, I discuss music streaming advertising, holiday spending and the College Football Playoff.
MEDIA: Music Streaming Advertising
Advertising revenue from music streaming platforms is forecast to grow sharply this year and next, according to a report in the MediaPost citing Morgan Stanley media analyst Benjamin Swinburne.
According to those Morgan Stanley estimates as reported in the MediaPost, that ad revenue is expected to grow a staggering 37% in 2021 and 21% next year.
Pink's Bottom Line
That robust ad revenue growth indicates that the music industry, which once struggled in the era of digital delivery of music, now is benefiting from the tremendous consumer adoption of music streaming.
As music streaming platforms increase their subscriber bases, look for those ad revenues to remain strong, even beyond 2022.
MONEY: Holiday Spending
Consumers will spend more this holiday season compared to last year, according to the recently released Holiday Outlook 2021 report from PwC.
Pink's Bottom Line
Notably, according to that report, spending this holiday season will be up 13% compared to 2019, before the pandemic began.
As such, the consumer appears confident and strong as the all important holiday retail season is set to begin.
Since consumer spending accounts for roughly two-thirds of all economic activity in this country, a strong consumer this holiday season likely also means a strong economy for the rest of the year.
SPORTS: College Football Playoff
It was another week of chaos in college football as top-ranked Alabama fell to Texas A&M 41-38 on a last second field goal.
As I wrote last week, it is looking more and more likely that at least two one-loss teams could make the College Football Playoff (CFP) this season, and the sportsbooks seem to agree.
Pink's Bottom Line
It seems likely that if both Alabama and Ohio State win the rest of their games and their respective conference championships, each will make the CFP.
Additionally, Cincinnati, currently unbeaten with a relatively easy schedule the rest of the year, could emerge as the first team from outside a Power 5 conference to make the CFP if the Bearcats win the rest of their games.
In any case, look for more chaos in college football for the remainder of the year — that seems to be the only certainty this season.
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)