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
While the US movie box office struggles, China’s theaters and cinemas appear to be doing quite well. According to data from an article in The Hollywood Reporter, the movie Detective Chinatown 3 grossed nearly $400 million this past Friday to Sunday, which was also a holiday weekend in China celebrating the Lunar New Year. Contrast those numbers with the total US domestic box office gross of $11.2 million for the Friday to Sunday period, according to Box Office Mojo. It may not be all bad news for the US movie business, though.
There’s more mergers and acquisitions activity related to the nation’s red hot podcasting industry. This week, iHeartMedia, a large, diversified audio company that has radio broadcast stations, publishes podcasts and more, said it will acquire Triton Digital, a company that provides audio technology and advertising services for podcasters and the entire digital audio industry. Expect podcasting competition to intensify even more this year and expect even more consolidation within the industry.
Maryland’s state government last week passed a measure that would allow the state to tax digital advertisements. However, that new measure’s legality is being challenged. (Here’s an excellent Baltimore Sun article about the new tax and efforts to stop it.) In any case, the tax could generate significant revenue for Maryland at a time when state and local budgets are under enormous pressure because of the impact of the coronavirus pandemic. It’s worth watching to see just what implications this digital ad tax in Maryland will have on the digital ad business across the country.
MONEY
Consumer sentiment fell slightly this month compared to January, according to the monthly Consumer Sentiment Index survey released recently by the University of Michigan. Notably, though, those surveyed who earned less than $75,000 a year accounted for the entire overall decline in sentiment, according to the Michigan survey. Here’s what that means.
Home prices rose across the board during the fourth quarter of last year, according to data from the National Association of Realtors (NAR). The median price of an existing home jumped 14.9% to $315,900 in the fourth quarter of 2020 compared to the fourth quarter of 2019, according to the NAR. If mortgage rates and inventory levels stay low and if the work from home trend remains strong, look for home prices to remain resilient for at least the rest of the year.
Retail sales nationwide rose sharply in January compared to December, following three consecutive monthly declines in sales during the critical holiday shopping period. Notably, retail sales in January rose in conjunction with the release of government stimulus checks indicating that consumers spent some of that stimulus money. That makes the passage of a new stimulus package even more critical.
SPORTS
The Utah Jazz right now sport the best record in the NBA. The Jazz are on a truly astonishing run considering that the team really doesn’t have the duo or trio of superstars that most title contenders have these days. The Jazz clearly are a strong regular season team, but it’s unclear whether they can also be a dominant team in the playoffs.
With baseball spring training just now beginning, the Los Angeles Dodgers, defending World Series champions, are the favorite to win it all again this season. The New York Yankees are the second favorite. Here’s why it’s not surprising that the two teams favored to win the World Series both come from the nation’s two biggest media cities.
In a blockbuster offseason move in the NFL, the Philadelphia Eagles reportedly are trading quarterback Carson Wentz, who the Eagles had considered its franchise quarterback until recently, to the Indianapolis Colts. While the trade didn’t come as much of a surprise as Wentz and the Eagles appeared to have irreconcilable differences, it is the latest change of scenery this offseason for a veteran quarterback in the NFL. It also puts the focus squarely now on a possible trade of Houston’s Deshaun Watson, arguably one of the top five quarterbacks in the league.
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)