Pink's Bottom Line on Media, Money and Sports
App spending, a cryptocurrency related IPO and the NFL quarterback carousel
In today’s newsletter, I discuss projected spending on apps, a cryptocurrency related IPO and the NFL quarterback carousel.
MEDIA: App Spending
Spending on apps via the Google Play and Apple App Store will grow nicely in the next few years, according to a report from SensorTower, a data app research and analytics company.
SensorTower projects app spending will increase on a 19.5% compound annual growth rate through 2025. That means app spending is projected to increase to $270 billion in 2025 from $111 billion last year.
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Notably, according to SensorTower, spending on non-gaming apps will be greater than spending on mobile gaming apps by 2024.
For some context, in 2020, spending on mobile gaming apps totaled $48 billion, doubling the amount spent on non-gaming apps.
That suggests that non-gaming apps — many of which rely on recurring subscriptions unlike most gaming apps — appear to have a nicely sustainable revenue model.
MONEY: Coinbase IPO
Coinbase, essentially an exchange where investors can buy and sell cryptocurrencies, is planning an initial public offering (IPO). (Click here to read Coinbase’s S-1, its formal SEC filing for an IPO.)
Coinbase says it plans to do a direct listing of its shares, meaning that it won’t use an investment bank to underwrite its IPO but will instead offer its shares directly on the market.
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While Coinbase’s plans for an IPO had been mostly known since late last year, the timing of its formal filing comes at a time when the price of Bitcoin, the most widely traded cryptocurrency, has been soaring.
The IPO is also coming at a time where Bitcoin — and cryptocurrencies in general — are becoming more popular among retail and institutional investors alike.
As such, Coinbase’s IPO is also the latest piece of evidence of just how much cryptocurrencies are becoming mainstream.
SPORTS: NFL Quarterback Carousel
Russell Wilson, the veteran quarterback of the NFL’s Seattle Seahawks, is reportedly unhappy with his team, according to a story in The Athletic.
That is leading to speculation that Wilson, arguably one of the top five quarterbacks in the NFL, could be traded, something that was inconceivable just a few months ago.
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It is also adding to an already tumultuous offseason among NFL quarterbacks as we’ve already seen trades for Carson Wentz — from Philadelphia to Indianapolis — and Matthew Stafford — from Detroit to the Los Angeles Rams for Jared Goff.
Deshaun Watson, quarterback of the Houston Texans, also has indicated that he wants to be traded though the team has said it has no plans to make a trade.
There are also top free agent quarterbacks in the market and there’s speculation about additional marquee quarterbacks who might also be on the trading block.
Despite all of the potential trades and movement, I expect subdued activity and I expect Wilson to remain in Seattle unless another team makes an offer that the Seahawks simply can’t refuse.
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)