Weekly Recap: Pink's Bottom Line on Media, Money and Sports
Top takeaways and items from the week
Here are the top takeaways and items from this week’s newsletter. I hope everyone is having a great, long holiday weekend.
MEDIA
More consumers are signing up for high-speed broadband while others are ending their pay television subscriptions, according to two separate reports from the Leichtman Research Group, a research firm that covers broadband, media and entertainment. These reports underscore the importance of high-speed broadband, particularly during the coronavirus pandemic when more people are working from home and the need for fast, dependable broadband service is imperative.
If you want to watch the new blockbuster movie WW84: Wonder Woman 1984 on Christmas Day, you’ll have two choices of where to view the film — in the theater or at home on HBO Max, the video streaming service. The accelerated change in the way movies are distributed attests to the reach of video streaming platforms and to the growing importance of a direct-to-consumer strategy for studios.
Four of the top five highest grossing apps in the Google Play store are media apps, according to my unofficial and quick review earlier this week. The composition of the these top grossing media apps is indicative of some broader trends in media and mobile.
MONEY
If you’re from Generation X, which includes those born from 1965 to 1980, chances are you’re more likely to own a mutual fund than someone from another generation, according to a report from Investment Company Institute (ICI). Notably, though, the percentage of Gen Z and Millennial led households that held mutual funds grew to 47% this year, well ahead of the 41% who owned funds last year, according to that report, suggesting that the younger generation in America is saving money even in the middle of the coronavirus pandemic.
We’re in the middle of the traditionally busiest travel week of the year, and consumers will be paying the least amount of money for a gallon of gas than they have paid in five years, according to AAA. However, it doesn’t necessarily mean those lower prices will generate increased consumer demand this holiday travel season as many Americans are staying home — and limiting all travel — due to the coronavirus pandemic.
The National Retail Federation (NRF) released its own projections on holiday spending a few days ago, and those projections appear relatively encouraging. The NRF says it expects consumers to spend between 3.6% and 5.2% more during this year’s holiday season compared to last year. The strength of the holiday shopping season will be crucial to maintaining the nation’s economic recovery as consumer spending in general accounts for about 70% of the country’s overall economic activity.
SPORTS
The college basketball season officially began Wednesday, but many questioned whether to start the season at a later date instead. Notably, Rick Pitino, who currently coaches Iona, suggested that the season should begin in March and culminate with the NCAA Tournament in May. Here’s why Pitino’s suggestion is a good one.
In some very sad news, Argentinian soccer legend Diego Maradona passed away Wednesday at age 60 from a heart attack. Maradona had a number of health issues over the years, and he underwent brain surgery last month. He was a truly special player.
When this strange college football season began in September, the top Heisman Trophy favorites were clear — quarterbacks Trevor Lawrence of Clemson and Justin Fields of Ohio State. Now, in late November, Florida quarterback Kyle Trask has emerged as a clear favorite. Trask’s season this year is also reminiscent of the breakout season of last year’s Heisman winner, LSU quarterback Joe Burrow.
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is 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. Jeremy 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)