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
Facebook remained a juggernaut in the app world in March, according to data from SensorTower, an app data and research company. Facebook, Instagram, WhatsApp and Messenger — all apps owned by Facebook — ranked as the second, third, fourth and fifth most downloaded non-gaming apps, respectively, in the world in March, according to SensorTower. Overall, video and messaging related apps dominate this top ten list, suggesting the durable popularity, power and reach of these types of apps.
There’s more consolidation in the podcasting industry as The Wall Street Journal is reporting that Vox Media is buying Cafe Studios, home to the podcast of Preet Bharara, a former US attorney. As the podcasting industry has matured in the past two years, there has been plenty of mergers and acquisitions activity by large companies including Spotify, iHeartMedia, SiriusXM and others. Look for that trend of consolidation to continue.
The number of subscriptions to video streaming services in the United States hit an interesting milestone in the first quarter of the year, according to Ampere Analysis, a data and analytics research firm. According to Ampere, there are now 340 million subscriptions to video streaming services in this country, which is more than the the total population of 330 million people in this country. However, I expect subscriptions to video streaming services to hit a saturation point soon — perhaps by the end of the year — and that could lead to pricing pressure on these services.
MONEY
Federal Reserve Chair Jerome Powell told television show 60 Minutes Sunday that he expects the US economy to be “very strong” this year. Powell said that thanks to fiscal and monetary measures as well as increasing vaccinations, the economy appears on good footing. He also said, “The principal risk to our economy right now really is that the disease would spread again.” Powell’s interview reinforces the notion that the US economy might be on the cusp of a very strong recovery, provided that the coronavirus remains under control.
Consumer prices recorded their biggest one-month increase in nearly eight years, according to the government’s Consumer Price Index (CPI) report, which was released this week. The CPI rose 0.6% last month following a 0.4% gain in February, according to that report. Inflation at the consumer level could have a significant impact on the overall economic recovery as higher prices erode consumer spending power.
Small business in the United States appeared more optimistic last month, according to the NFIB Small Business Optimism Index released earlier this week. That index hit a level of 98.2 in March, 2.4 points above where it stood in February — it is now at its highest reading since November when it reached a level of 101.4. Notably, though, more than four in ten small businesses can not fill current job openings, and more than one in every four small business said it has boosted compensation for workers in the past year. Here’s what that all means for small business.
SPORTS
Perhaps the most dominant athlete in any sport these days is US swimmer Katie Ledecky. On Sunday in Mission Viejo, California, Ledecky won the 1500 meter freestyle at the Pro Swim Series fully 17 seconds ahead of the second place finisher. That is an astonishing time difference for an elite swimming event. The Olympics will begin in Tokyo this summer after a one year postponement due to the coronavirus pandemic. Expect Ledecky to emerge as the star of this year’s games, as she appears to be hitting her top form just at the right time.
In the NBA earlier this week, Stephen Curry of the Golden State Warriors scored 53 points in his team’s victory over the Denver Nuggets, and Curry became the career all-time points leader for his franchise with that performance. Curry passed Wilt Chamberlain, a transcendent talent and one of the greatest to ever play the game, to become the all-time points leader for the Warriors. Like Chamberlain, Curry is a transcendent talent thanks mostly to his astonishing three-point shooting.
The NFL’s Cleveland Browns this week signed free agent defensive tackle Jadeveon Clowney to a one-year deal, bolstering the team’s already strong defensive line. Clowney, the top pick in the NFL Draft by the Houston Texans in 2014, will join Myles Garrett, who the Browns selected with number one overall pick in the draft in 2017, on the defensive line for the Browns. With the addition of Clowney, the team’s defense could be much improved to match an offense that played well last season and only looks like it will only get better. As such, for the first time in a number of years, there’s now warranted optimism in Cleveland for the Browns next season.
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)