Pink's Bottom Line on Media, Money and Sports
Disney+ video streaming service, consumer prices and the NCAA men's basketball tournament
In today’s newsletter, I discuss the rapid growth of the Disney+ video streaming service, consumer prices and the NCAA men’s basketball tournament.
MEDIA: Disney+ Streaming Service
Disney+, the rapidly growing subscription video streaming service from Disney, has topped 100 million subscribers, according to Disney CEO Bob Chapek who was speaking at the company’s annual shareholder meeting Tuesday.
(Click here to listen to that shareholder meeting. Chapek mentions the 100 million subscriber mark at 21:55 in this audio stream.)
At that shareholder meeting, Chapek also said that the company now has a target to produce more than 100 new titles per year across its brands and divisions.
Pink's Bottom Line
Disney+ launched in November 2019 — just 16 months ago — and its growth has been strong ever since — that underscores the popularity of video streaming services, particularly during the time of the coronavirus pandemic.
However, Disney+ — and other video streaming services — now are facing a more crowded field of competitors, which could lead to market saturation and to a slowdown in subscription growth.
As such, proprietary and popular content will remain a key differentiator between streaming services, and Disney+ appears well positioned to deliver on that content.
MONEY: Consumer Inflation
Consumer prices rose 0.4% last month compared to January, led mostly by increases in energy prices, according to the government’s Consumer Price Index (CPI) report released earlier today.
According to that report, gas prices surged 6.4% in February compared to January— accounting for much of that overall monthly increase in prices.
Energy prices, which include natural gas and electricity, rose 3.9% in February compared to January, according to that report.
Pink's Bottom Line
This report shows that energy prices — especially gas prices — are rising sharply, but other prices appear more under control, at least for February.
Notably, food costs increased 0.2% in February compared to January, new car prices were flat month to month and used car prices slipped 0.9% last month, according to the CPI report.
While energy prices can be volatile and could stabilize soon, it’s still worth keeping a close eye on inflation — particularly at the consumer level — as consumer spending accounts for as much as 70% of total US economic activity.
SPORTS: NCAA Men’s Basketball Tournament
The NCAA men’s basketball tournament — March Madness — begins a week from tomorrow.
According to FanDuel Sportsbook, three teams are better than even money to make the Final Four — Gonzaga is -300, Baylor is -250 and Michigan is -210.
(Note: Gonzaga at -300 means that if a bettor wagers $300 on Gonzaga to make the Final Four and Gonzaga does indeed make it, then that bettor wins $100.)
Pink's Bottom Line
For a tournament that’s notorious for its upsets, it’s surprising to see three teams that are such strong favorites to make the Final Four.
While Gonzaga and Baylor have been the best teams this year, the Big Ten — led by Michigan, Illinois, Iowa and Ohio State — has probably been the best conference.
As such, look for two Big Ten teams to reach the Final Four this year, which would the first time that’s happened since 2015 when both Michigan State and Wisconsin advanced to the national semifinals.
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)