Pink's Bottom Line on Media, Money and Sports

Netflix, the American consumer and the Los Angeles Dodgers

The Presidential Debate is running on all major broadcast networks, the 24-hour news networks, PBS and elsewhere tonight. As such, please consider today’s newsletter as my humble attempt at counter-programming or maybe call it concurrent programming — you can also read it as you watch the debate tonight.

MEDIA: Price Increase for Netflix?

Netflix reportedly looks like it might increase its monthly subscription price, at least according to one analyst on Wall Street.

Jefferies analyst Brent Thill reportedly posited in a research note that a price hike for the video streaming service could come soon. (Note: Thill is a widely followed Wall Street analyst who covers the tech sector.)

Netflix has raised prices in the past, but consumers absorbed those price increases without much problem.

Pink's Bottom Line

As you can imagine, if Netflix did, for example, again increase the cost of its service by $2 a month and also didn’t suffer a significant loss in subscribers, the price hike would become a huge revenue generator for the company. (Here’s a good summary of that potential revenue.)

I do think the American consumer will absorb another price hike this year without too much of an issue.

However, subsequent price increases by Netflix will be harder to sustain as the popularity and emergence of rival video streaming services like Disney+, Peacock, HBO Max and others continues to grow.

MONEY: Consumers More Confident

The American consumer appears more confident, at least according to one widely watched survey.

The Conference Board, a non-profit, non-partisan think tank, says that its Consumer Confidence Index increased sharply this month to a reading of 101.8, up from a level of 86.3 in August.

(Note: A reading of 100 is the baseline level for this index, so a reading above 100 in September means consumers have slightly more confidence today than they have had historically.)

Pink's Bottom Line

The higher September reading also is a positive sign for economic recovery in the United States as the nation’s consumer accounts for as much as 70% of overall US economic activity.

If consumers remain as confident in subsequent months, particularly as the holiday shopping season approaches, then the chance for a stronger, sustained economic recovery is in the cards.

SPORTS: It’s Dodger Time

Playoffs began today in Major League Baseball, and it’s a postseason unlike any that we’ve ever seen.

There are 16 teams competing for the World Series, eight from leach league. Since 2012, only ten teams, five from each league, have competed for the title so it’s a much bigger pool of teams this year.

The Los Angeles Dodgers, who have the best record in baseball’s shortened regular season this year, begin their postseason tomorrow against the the Milwaukee Brewers.

The Dodgers lost the World Series in both 2017 and 2018, and they are favored to win it this year.

Pink's Bottom Line

Notably, the Dodgers lead the majors this year in run differential, which is one of my favorite stats in all of baseball or any sport for that matter, by a wide margin.

(Note: Run differential is the difference in the total number of runs a team scores compared to the total number of runs it allows in a season. It’s also a great indicator of a team’s overall strength.)

In fact, the Dodgers scored the most runs and allowed the fewest runs in all of baseball.

That’s quite a feat, and I think it means that the Dodgers will win the World Series this year for the first time since 1988.

---

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 executive in New York, London and Singapore. He currently serves as an advisor to companies in media, technology, sports and financial tech.

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.