Pink's Bottom Line on Media, Money and Sports
Twitter's new subscription product, services sector strength and the USFL returns
 |
In today’s newsletter, I discus Twitter’s new subscription product, services sector strength and the USFL returns.
MEDIA: Twitter’s New Subscription Product
Twitter today said that it will launch its long awaited subscription product, which the social media company is calling Twitter Blue. The new service will begin in Australia and Canada.
For a flat monthly fee, subscribers to Twitter Blue will get an enhanced set of features including bookmarks, a special reading mode and even the ability to undo a Tweet.
Pink's Bottom LineThe launch of Twitter Blue demonstrates the ubiquity — and popularity — of subscriptions across the digital media world.
Many media companies now rely on subscriptions in addition to advertising as a subscriptions are predictable, recurring sources of revenue unlike advertising, which is a less certain, variable revenue stream.
As such, Twitter’s foray into subscriptions could provide the company significant new revenue beyond advertising, which is currently its primary source of proceeds.
MONEY: Services Sector Strength
Economic activity in the nation’s services sector is strong, according to the ISM’s Services PMI, a leading gauge of activity in the services sector.
Additionally, in that report, supply deliveries slowed, which often happens as an economy picks up steam.
Prices also increased in May, which is an indication that consumer demand is also growing.
Pink's Bottom LineOverall, the Services PMI points to a robust overall economic recovery led by the services sector.
That said, the economy is showing signs of strain with that improved activity as supplies are tight and prices are higher.
It will be important to see how the service economy handles these challenges in the coming months to determine if these challenges are temporary of if they are longer term in nature.
SPORTS: Return of the USFL
Television distribution will be critical for the success of the new league, and the USFL already has Fox Sports as a broadcast partner. (Note: Fox Sports owns a small piece of the USFL.)
Pink's Bottom LineAdditionally, the USFL will be competing with the XFL, which also plans a spring football league in 2022.
It has been a tough run for new football leagues recently. The Alliance of American Football debuted in the spring of 2019 only to fold during its inaugural season.
This will be the third iteration of sorts for the XFL. It debuted in 2001, and folded after one season. The XFL started again in 2020, playing only a handful of weeks before it declared bankruptcy.
While demand for NFL football appears insatiable, it’s unclear whether spring professional football will ever gain significant traction with viewers, sponsors or advertisers.
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)