Weekly Recap: Pink's Bottom Line on Media, Money and Sports
Top items and takeaways from the week
Here are the top items and takeaways from this week’s newsletter.
MEDIA
There’s more evidence of pricing power in the booming video streaming business as ESPN+, the sports streaming service, recently announced that it will increase the price of its annual subscription. While it appears that video streaming services are confident that they can still maintain their subscriber base with incremental price increases, I expect that 2021 will be the year when we might see some push back from consumers.
In the latest sign that the nation’s magazine business remains in the throes of change, Wyndham Destinations, a vacation timeshare company, said it is buying the magazine Travel + Leisure from the Meredith Group, a media company that owns a number of other magazines and local television stations. This deal — and others like it — underscores the notion that potential acquirers of magazines these days aren’t necessarily media companies, and it also indicates that media companies simply might not value magazines much any more.
Section 230 of the government’s Communications Decency Act in part reads, “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” That essentially provides Facebook and Twitter legal protection in most cases for incendiary or inappropriate content, for example, that might appear on their platforms. Here’s why the potential repeal of Section 230, while already a polarizing political issue, will become even more contentious in 2021.
MONEY
Despite the negative impacts of the coronavirus pandemic, the nation’s manufacturing sector remained strong in December, according to the IHS Markit US Manufacturing PMI, a monthly survey that examines manufacturing in the United States. If manufacturing can continue to exhibit strength in 2021 — particularly as the pandemic gets more under control — then the sector could serve as a backbone to the nation’s economic recovery.
On the heels of the Senate run-off elections in Georgia, the yield on the 10-year Treasury note topped 1% this week — that’s the first time the yield has hit that level on the 10-year since before the pandemic began. While the yield on the 10-year is still very low by historical standards, it could be indicative of a change in sentiment likely brought about by the prospects of a Democrat-controlled Senate.
The U.S. trade deficit widened to its biggest gap in more than 14 years, according to a report this week from the Commerce Department. The deficit for goods and services combined swelled to $68.1 billion in November, a 7.9% increase compared to October. Imports from China also grew. All of that data indicates that US demand for foreign goods — particularly from China — remains robust despite the impacts of the coronavirus pandemic and despite tariffs levied on China in recent years.
SPORTS
Top ranked Alabama will play third seed Ohio State in the College Football Championship game Monday following resounding victories in the national semifinal games by both the Crimson Tide and the Buckeyes a week ago. Alabama is currently a consensus 7.5 point favorite over Ohio State, and the Crimson Tide’s offense looks unstoppable. However, here’s what could lead to an improbable Ohio State victory in the national title game.
With the NFL Playoffs kicking off tomorrow, the defending Super Bowl champion Kansas City Chiefs remain the clear favorite to win the title again this year. That said, perhaps the two teams playing the best football right now are the Buffalo Bills and the Baltimore Ravens, who both happen to be in the AFC with the Chiefs. Here’s why it’s not hard to imagine either the Bills or the Ravens winning the AFC instead of the Chiefs.
If you check out the college basketball rankings this week, it’s a bit startling to see the absence of traditional programs like Kentucky and North Carolina from the country’s Top 25. Duke, another perennial power, is ranked 24th in the country. However, I still expect one of these three teams to make it to the Final Four this March.
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)