Pink's Bottom Line on Media, Money and Sports
Debate viewership, Bed, Bath & Beyond and the Atlanta Falcons
The Los Angeles Lakers looked dominant last night in the first game of the NBA Finals, but in today’s newsletter I talk about the NFL’s Atlanta Falcons, a team that has been anything but dominant so far. Here’s my take on the Falcons and more in today’s edition.
MEDIA: Younger Viewers Tune Out the Debate
Viewership on traditional linear television among those aged 18 to 34 of the contentious, bruising and polarizing presidential debate Tuesday night between President Donald Trump and former Vice-President Joe Biden plunged 34% compared to the first presidential debate of 2016, according to data from Nielsen.
For all age groups, Tuesday’s debate pulled in more than 73 million viewers, down 12.9% from the first presidential debate in 2016, according to Nielsen data.
Viewership for those aged 55 and above actually increased slightly for this year’s debate compared to 2016, according to those Nielsen numbers.
Pink's Bottom LineThe younger audience appears to have tuned out the debate this year — or at least not watched it on traditional linear television.
That suggests to me that, while political ad spending on television will remain plentiful until next month’s election, ad spending to reach the coveted 18 to 34 year-old demographic will shift even more sharply to digital media than had already been happening.
As Twitter doesn’t accept political ads and as Facebook won’t run political ads after October 27, look for other digital media to benefit from a surge in political ad spending that targets the younger demographic.
MONEY: Big Box, Big Day
Bed, Bath & Beyond, one of the country’s bellwether big box retailers, did something it hadn’t done since 2016.
The company reported that same-store sales grew sharply last quarter, up 6% compared to the same quarter last year. It’s the first time the retailer has seen same-store sales increase in nearly four years.
(Note: Same-store sales measure sales of stores open one year or longer, and do not measure sales of newer stores. It’s a way for retailers to gauge true, annual comparable sales performance of their stores.)
Pink's Bottom LineBed, Bath & Beyond’s sales growth came from its digital channels, which saw revenue increase 89% year-over-year while in-store sales actually declined 12% over the same time period.
That sales disparity underscores a long-term trend that has only accelerated since the coronavirus pandemic — retail is going virtual, and moving away from physical stores.
If traditional retailers like Bed, Bath & Beyond can remain nimble during these unprecedented times with their digital offerings, that could provide some much-needed stability to the overall retail sector.
SPORTS: Winless Winner
As the NFL season kicks off its fourth week tonight, six teams currently are winless at 0-3, which doesn’t bode well for their playoff chances as only seven teams in history have made the post-season after starting with three consecutive losses. (Note: I’m only considering seasons starting from the first Super Bowl.)
Of the six teams this year with that 0-3 record, I think the team that has the best chance to reach the post-season is the Atlanta Falcons.
Pink's Bottom LineThe Falcons held the lead in the fourth quarter of all three of their games this season, and they probably should have won at least two of them - they suffered some truly historic collapses.
The Falcons next play the Green Bay Packers, which will be a tough game for Atlanta to win. After that game, though, the Falcons have a pretty winnable five game stretch.
Considering that the playoffs expand to seven teams per conference from six this year and considering that the Falcons’ division doesn’t appear particularly strong, I think we might see Atlanta with a 4-4 record midway through the year and in a good position to clinch a playoff berth.
Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he led 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. Jeremy currently serves as an advisor, consultant or board member to companies in New York, London, Hong Kong and Dubai in the media, technology, sports and financial tech sectors.
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.