Pink's Bottom Line on Media, Money and Sports
Spotify's acquisition, consumer confidence and the NCAA Men's Basketball Tournament
In today’s newsletter, I discuss Spotify’s recent acquisition, consumer confidence in the United States and the NCAA Men’s Basketball Tournament.
MEDIA: Spotify’s Acquisition
Spotify, the global music streaming and podcasting company, announced that it had purchased Betty Labs, the company behind the Locker Room app.
The Locker Room app provides live audio capabilities for users to talk about sports together — it is similar to the Clubhouse app, which is a popular live audio app where users talk about virtually any topic together.
Spotify said that it will enhance and modify the Locker Room app so users will have the ability to talk live about a variety of topics, not just sports.
Pink's Bottom LineSpotify’s acquisition of Betty Labs builds out the company’s overall audio offerings, which now include music streaming, podcasts and live audio.
It is a fascinating move for Spotify as it diversifies the company’s potential revenue stream while still maintaining the company’s focus on audio.
Importantly, I suspect that Spotify’s acquisition on Betty Labs will lead to a flurry of other acquisitions from big media or big tech in the live audio space.
MONEY: Consumer Confidence
Consumer confidence rose sharply last month, hitting its highest level since the pandemic began, according to the Conference Board Consumer Confidence Index that was released Tuesday.
That index hit a level of 109.7 last month, up from 90.4 in February, according to the Conference Board.
Additionally, consumers appeared optimistic about the next six months as more than 40% said business conditions would improve over that time period compared with just over 30% in February.
Pink's Bottom LineConsumer confidence — and strong expectations from consumers about future business conditions — are critical to overall economic growth in the United States.
That’s because consumer spending accounts for as much as 70% of all economic activity in this country.
Additionally, as the government stimulus makes its way into the economy and as businesses reopen as the pandemic recedes, a strong economic recovery seems like a real possibility in the coming months.
SPORTS: NCAA Men’s Basketball
Top seeds Gonzaga and Baylor now look like they are on a collision course to meet in the NCAA Men’s Basketball Tournament final next Monday.
Last night, Gonzaga, which dispatched USC in convincing fashion, will play UCLA, an 11 seed that beat top seed Michigan, in one national semifinal.
In the other semifinal, Baylor, which defeated three seed Arkansas Monday, faces two seed Houston, a winner over 12 seed Oregon State.
Pink's Bottom LineAccording to FanDuel Sportsbook, among the four teams remaining in the tournament, Gonzaga is a clear favorite at -190 to win it all with Baylor as the second favorite at +260.
If Gonzaga does win the tournament, it will finish the season as unbeaten national champions, which would make the Zags the first team to accomplish that feat since Indiana in 1976.
Expect that to happen in a very exciting national championship game between Gonzaga and Baylor next Monday.
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)