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
For those unfamiliar, the YouTube Partner Program (YPP) offers creators ways to monetize their content on YouTube. In a blog post earlier this week, YPP said that it now has more than two million participants in that program worldwide — YPP started in 2007. YPP is an example of the burgeoning creator economy, where content creators are working with different platforms to earn money with their content. Content creators can often earn a living on multiple platforms including YouTube, Patreon, TikTok, Instagram and others. As such, the two million participant mark announced by YPP is notable as it is the latest indication that the creator economy is thriving.
In the second quarter of this year, the typical mobile phone consumer used 45 apps on average on a monthly basis, according to an analysis by Sensor Tower, a mobile research and analytics firm. Notably, consumers in the second quarter of this year used more apps in the business and finance categories compared to the second quarter of 2020. That suggests that as more Americans work from home, they appear to be using more finance and business apps — that is a trend worth watching as more people begin returning to the office in the coming months.
Axel Springer, a German media company that also owns US digital media businesses, reportedly will buy Politico, a leading political news media company. According to The Wall Street Journal, the purchase price for Politico is more than $1 billion. Notably, the Axel Springer-Politico deal follows last week’s announcement that Nexstar said it is acquiring The Hill. Look for more purchases of digital media companies — expect both big media and big tech to make those acquisitions.
MONEY
Gas prices, which had been rising all summer, are moving lower, according to AAA. The average price of a gallon of regular unleaded gasoline in the United States was $3.16 at the beginning of the week, down two cents from a week earlier, according to AAA. The decline in gas prices this week appears to reflect a slowing of demand for gas due to both the end of the summer driving season and the emergence of the Delta variant. As a result, gas prices could decline even more in the coming weeks, assuming that demand does not return.
Nearly six in ten Gen Z investors — age 18 to 24 — say they have made a trade while they were drunk, according to a survey by Magnify Money, a financial information website owned by LendingTree, an online loan marketplace. Among all investors, 32% said they have made a trade while they were intoxicated, according to that survey. Additionally, almost half of those investors surveyed said that it is difficult to keep emotions at bay when it comes to making investing decisions. The survey’s findings show that while emotion plays a role across all age groups when it comes to investing decisions, it appears that the older the investor, the less that emotion plays a role.
The government Thursday released its second estimate of GDP growth in the second quarter. It reported that the nation’s economy grew 6.6% last quarter, a bit higher than its original estimate of 6.5%. Strong Personal Consumer Expenditures (PCE), which is a good proxy for consumer spending, in part led to that slightly higher revised economic growth number last quarter. Consumer spending, which accounts for roughly two-thirds of all economic activity in the United States, will need to remain robust in order for the economy to show sustained strong growth. The spread of the Delta variant, though, could put a crimp on consumer spending.
SPORTS
The top selections in this year’s NBA draft remain the favorites to win the NBA Rookie of the Year award this season. Notably, the top two picks of this year’s draft, Cade Cunningham of the Detroit Pistons and Jalen Green of the Houston Rockets, are the clear favorites to capture the Rookie of the Year award this season, according to FanDuel Sportsbook. However, one unheralded player, Alperen Sengun, the 16th pick in this year’s draft by the Houston Rockets, has emerged as the sixth favorite to become Rookie of the Year, according to FanDuel Sports. Here’s why Sengun looks like he just might emerge as a top young star in the NBA this season.
The NFL has expanded the number of teams that will make the playoffs this year to 14 from 12. Add that expanded number of teams to the recent trend that playoff teams often turn over dramatically from year to year, and it’s likely that we’ll see a host of new teams in the postseason this year. As such, I have identified three teams that will make this year’s postseason that didn’t make it in 2020.
The Baltimore Ravens are favored to win the AFC North Division again this year, according to FanDuel Sportsbook. The Ravens are led by star quarterback Lamar Jackson, who looks poised to have another terrific season this year. According to FanDuel Sportsbook, Jackson is tied with Dallas quarterback Dak Prescott as the fifth favorite to win the NFL league MVP award this year. The Ravens are loaded — both on offense and defense — and Jackson should be able to lead his team to the top seed in the AFC this year. As such, I suspect that Jackson, who was the NFL MVP in 2019, will emerge along with Kansas City quarterback Patrick Mahomes as the two players vying for the MVP award this 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)