Pink's Bottom Line on Media, Money and Sports
Video streaming subscriptions, consumer inflation and the NBA's Stephen Curry
In today’s newsletter, I discuss video streaming subscriptions, consumer inflation and the NBA’s Stephen Curry.
MEDIA: Video Streaming Subscriptions
The number of subscriptions to video streaming services in the United States hit an interesting milestone in the first quarter of the year, according to Ampere Analysis, a data and analytics research firm.
According to Ampere, there are now 340 million subscriptions to video streaming services in this country, which is more than the the total population of 330 million people in this country.
Pink's Bottom Line
The competition for video streaming subscribers is fierce in this country while traditional linear television’s subscriber base is eroding.
In the past year or so, for example, three new, well-funded video streaming services have entered the market — HBO Max, Peacock and Discovery+ — that now compete with the likes of Netflix, Disney+ and Amazon Prime among others.
As such, expect subscriptions to video streaming services to hit a saturation point soon — perhaps by the end of the year — and that could lead to pricing pressure on these services.
MONEY: Consumer Prices
Consumer prices recorded their biggest one-month increase in nearly eight years, according to the government’s Consumer Price Index (CPI) report, which was released earlier today.
The CPI rose 0.6% last month following a 0.4% gain in February, according to that report.
Notably, gasoline prices jumped 9.1% last month, which accounted for roughly half of that overall increase in prices in March, according to that report.
Pink's Bottom Line
Inflation at the consumer level could have a significant impact on the overall economic recovery as higher prices erode consumer spending power.
That’s important as consumer spending accounts for about two-thirds of overall economic activity in this country.
In the next few months, I’ll watch consumer prices closely to see whether March’s report is a one-time occurrence or the beginning of an overall trend.
SPORTS: Stephen Curry
In the NBA last night, Stephen Curry of the Golden State Warriors scored 53 points in his team’s victory over the Denver Nuggets, and Curry became the career all-time points leader for his franchise with that performance.
Curry passed Wilt Chamberlain, a transcendent talent and one of the greatest to ever play the game, to become the all-time points leader for the Warriors.
Like Chamberlain, Curry is a transcendent talent thanks mostly to his astonishing three-point shooting.
Pink's Bottom Line
Curry’s ability to hit three-pointers in any conceivable fashion and from seemingly anywhere beyond the three-point line changed the way the NBA game is played.
The NBA now emphasizes three-point shooting in a way it never did before Curry entered the league.
In twenty or thirty years when fans discuss this era of NBA basketball, two players will be remembered most vividly — LeBron James, who might be the best player of all-time, and Curry, who ushered in the era of the importance of the three-point shot.
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)