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
Moviegoers returned to theaters and cinemas this past Memorial Day holiday weekend as box office revenue hit its highest level since the pandemic began, according to data from BoxOfficeMojo. Despite lingering concerns about the pandemic, moviegoers appear willing return to the nation’s theaters and cinemas, particularly if there are blockbuster new releases.
The average US media consumer isn’t very good at spotting fake news, according to a study by the Proceedings of the National Academy of Sciences as reported by CNN. While nearly nine out of ten of the more than 8000 surveyed said they were able to spot fake news better than the average person, roughly 75% overrated their ability to do so, according to that study as reported by CNN. Those are worrying findings and they broader implications.
Not surprisingly, the three biggest cable news networks — CNN, Fox News and MSNBC — all suffered steep primetime viewership declines last month compared to May 2020. During May 2020, news viewership soared because it was the near the beginning of the coronavirus pandemic so that’s why this year’s lower numbers weren’t surprising. as US consumers continue to cut the cord by stopping their cable and satellite subscriptions, the universe of potential viewers will get smaller for all traditional pay television networks including news networks. Here’s what that means.
MONEY
Hot dog sales are on a roll, according to a survey from the National Hot Dog and Sausage Council (NHDSC). During the pandemic, sales rose roughly 20% and sales in April are up 8.6% this year compared to April of 2019, according to the NHDSC. The country’s appetite for hot dogs remained strong throughout the pandemic, and the hunger for them should continue this summer.
The Organization for Economic Co-operation and Development (OECD) said this week that it expects the global economy to grow 5.8% this year, up from its 4.2% growth estimate that it made at the end of last year. The OECD cites vaccinations for the coronavirus and government stimulus packages like the one in the United States as reasons for its higher projection. Notably, if many countries with emerging market economies do gain greater access to vaccines, the world’s overall economy should show even stronger growth.
Amazon today said that Prime Day, the two-day shopping sales event from the behemoth online retailer, will be held on June 21 and 22 this year. While the Prime Day sales event began only in 2015, it has emerged as one of the biggest shopping events of the entire year in all of global retail. This estimate from Digital Commerce 360 puts sales at more than $10 billion for Amazon during the Prime Day event in 2020 when it was held in October. Here’s why I expect Prime Day sales to approach or top last year’s numbers.
SPORTS
With the NBA playoffs now fully underway, injuries to marquee players have emerged as a key storyline. As such, look for the players and the league to consider a shorter regular season to reduce wear and tear on players. That, of course, assumes that the NBA will find ways to recover any lost revenue that might occur with a shorter regular season.
Naomi Osaka, the second ranked women’s tennis player in the world, shockingly withdrew from the French Open this week. A few days before that, Osaka said that she would skip mandatory news conferences as those events negatively impacted her mental health. Osaka’s statement and actions shine a spotlight on mental health issues in sports, which can often be overlooked by many. Her withdrawal from the French Open now could usher in a new era in sports where mental health issues are acknowledged openly and without stigmas.
The USFL, the upstart football league from the 1980s, will return next spring with at least eight teams. Television distribution will be critical for the success of the new league, and the USFL already has Fox Sports as a broadcast partner. (Note: Fox Sports owns a small piece of the USFL.) While demand for NFL football appears insatiable, it’s unclear whether spring professional football will ever gain significant traction with viewers, sponsors or advertisers.
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)