Weekly Recap: Pink's Bottom Line on Media, Money and Sports
Top items and takeaways from this week's newsletter
Here are the top items and takeaways from this week’s newsletter.
MEDIA
Univision, a big Spanish language media company in the United States, this week said it will launch a new 24-hour news channel early next year. That new channel will be part of Prende TV, Univision’s recently launched free video streaming service. That merged entity likely will also focus on video streaming, and that makes the launch of the new news channel, which will be part of Prende TV, so intriguing.
Video streaming apps — not surprisingly — are growing in popularity in 2021, according to a report from Sensor Tower, a global app research and analytics firm. Consumers installed 13% more video streaming apps in the first quarter of this year compared to the same quarter a year ago, according to Sensor Tower. Additionally — and more importantly — consumers spent 48% more money on video streaming apps in the first quarter of this year than they did in the first quarter of 2020, according to Sensor Tower. Here’s what that all means for the broader media industry.
The number of traditional linear pay television subscribers — primarily cable and satellite subscribers — declined again in the first quarter, according to data from the Leichtman Research Group. The total number of pay tv subscribers declined by 1.895 million in the first three months of the year, slightly less than the 1.955 million who cut the cord in the first quarter of 2020, according to that data. The data suggests that while the pace of cord-cutting appears constant, subscriptions to traditional linear pay television remain in a secular decline. It’s yet another reason why the media industry is focused on video streaming, which, unlike traditional linear tv, is growing rapidly.
MONEY
Housing starts in the United States fell 9.5% in April compared to March, according to data released this week by the government. It’s likely that higher lumber prices and a shortage of workers to build homes were the main culprits behind that lower housing starts number. As such, the decline in housing starts likely does not indicate a cooling off of the red hot US housing market.
Many cryptocurrencies, notoriously volatile assets, had a volatile week even by their standards. While cryptocurrencies have emerged as an alternative asset class and have become a mainstream investment for both the retail and institutional investors, it will be important to gauge investor reaction to this week’s volatility.
Both Walmart and Target, two of the country’s biggest retailers, reported strong quarterly earnings this week. Walmart reported strong sales, particularly in e-commerce, and the company boosted its outlook for the rest of the year. Target reported that sales rose a robust 22.9% in its most recent quarter, and the retailer also appeared confident about its performance for the rest of the year. These two earnings reports are encouraging for the overall economic recovery in the United States as retail spending accounts for about two-thirds of all economic activity in this country.
SPORTS
Connor McDavid of the NHL’s Edmonton Oilers led the league in scoring this year with 105 points. In a typical 82-game season, if a player scores 100 points, it’s an impressive feat that would put him among the league leaders. Since this year’s NHL season was truncated to 56 from 82 games, McDavid’s point total of 105 is even more impressive. His scoring pace puts him on rarefied ice.
Sabrina Ionescu of the WNBA’s New York Liberty recorded a triple double in her team’s victory last Tuesday night. It is only the tenth triple double ever recorded in the history of the WNBA, and Ionescu became the youngest player ever to achieve that feat. Because she plays in the media rich New York market, she’s likely to garner even more attention than she would have generated on nearly any other team in the league. That’s a good for sign for the WNBA as Ionescu’s star power should help build the overall popularity — and television viewership — of the league.
Spain’s Rafael Nadal, winner of 13 French Open men’s tennis titles, is the clear favorite to win the tournament, which begins Monday, again this year. Greece’s Stefanos Tsitsipas, currently ranked 5th in the world, is also a player to watch in this year’s tournament. Here’s why he could play deep into the second week at the French Open.
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)