In today’s newsletter, I discuss Netflix, small business optimism and a blockbuster NBA trade.
MEDIA: Netflix Original Content
One of the top trending videos on YouTube in the past day comes from Netflix, which released a promo video touting the video streaming service’s movie slate for 2021.
Netflix is promoting that it will release a new, original Netflix-produced movie every week this year, which underscores just how much the company is investing in original content.
Pink's Bottom LineAs the nation’s movie theaters struggle because of the coronavirus pandemic, traditional studios have been looking at the new and different ways to distribute and monetize their content in today’s challenging environment.
However, Netflix — and other video streaming services — don’t face those problems as they own their distribution platforms and collect monthly revenue via subscription fees.
Importantly, Netflix also interacts directly with the consumer rather than distribute through intermediaries like movie theaters, which gives the streaming service deeper insight into its consumers’ behaviors.
As such, Netflix — as its new slate of movies indicates — is further distancing itself from its peers in the entertainment industry.
MONEY: Small Businesses
Against the backdrop of a nationwide pandemic, this country’s small businesses are not very optimistic, according to a new survey.
The NFIB Small Business Optimism Index slumped in December. It hit a level of 95.9, below the index average of 98, and down from a level of 101.4 from November’s reading.
Notably, according to those small business owners surveyed, they don’t expect things to get much better in the next six months, either.
Pink's Bottom LineThe country’s small businesses have borne the brunt of the economic impact of the coronavirus in the past year.
Small businesses in aggregate account, by some measures, for nearly half of all private sector jobs in the country.
If small business doesn’t rebound and business owners don’t become more optimistic about the future, it could undoubtedly prolong the economic malaise in the United States.
SPORTS: NBA Title Odds
The NBA’s Brooklyn Nets earlier today reportedly traded for Houston Rockets’ star guard James Harden, which will gives the Nets a trio of all-stars in its starting five with Harden, Kevin Durant and Kyrie Irving.
By chance very early this morning before the Harden trade had been announced, I happened to check the NBA championship odds on FanDuel Sportsbook, and the Los Angeles Lakers were +260 to win the NBA title this year while the Nets were listed at +600.
Now, post the Harden trade, the Lakers remain at +260 while the Nets are currently +270, according to FanDuel Sportsbook.
Pink's Bottom LineThe Lakers early regular season play had separated them from the rest of the league before the announcement of the Harden trade, but now the Nets are essentially co-favorites with the Lakers to win the title.
That shows the outsized impact that one player can have on an NBA team’s fortunes — there is nothing really comparable in other sports with the possible exception of an acquisition of an elite quarterback on a football team.
In any case, while the Nets should improve now that they have Harden on their roster, I still expect the Lakers to win the NBA title rather easily this year.
(Note: For those new to sports betting, a team listed at +260 means that if a bettor wagers $100 on that team to win and the team does indeed win, then the bettor wins $260.)
Jeremy Pink is COO of Geniecast, a leading virtual content and experience company, and he is also currently an advisor to companies in the media and financial tech sectors. Jeremy 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, and 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)