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
Jason Kilar, CEO of Warner Media, said he is forecasting that HBO Max, the video streaming service from AT&T’s Warner Media, will grow to 120 million subscribers worldwide by the end of 2025. Additionally, Kilar said, “HBO Max attracts a considerably younger audience. Forty-three percent of HBO Max viewers are under the age of 35. 50% of the audience is female whereas HBO has historically had a slight male skew.” It’s yet another sign of just how much traction video streaming services currently have, and Kilar’s comments also indicate strong growth prospects for a younger demographic for the next few years. (Note: Kilar made all of those comments a week ago during the AT&T Investor Day, and I found the transcript of his comments on Aiera, a financial services event access and monitoring platform, where I have worked as an advisor. )
Viewership of the Grammys Awards show, which CBS broadcast Sunday night, fell to its lowest level ever according to multiple news reports that cited Nielsen measurement. (Click here to read an excellent story on the viewership of the Grammys in Variety, an entertainment publication.) While viewership of the Grammys likely will still rank higher than most programming on traditional television with the exception of live sports this year, the decline in viewership is notable.
The Wall Street Journal is reporting that the Chinese government, which controls media tightly in China, doesn’t want Alibaba’s media businesses under the group’s control any longer. Separately, according to multiple news reports, the Chinese government does not want media outlets to air the Oscars live in China next month. Both the potential sale of Alibaba’s media assets and the reported government directive to not air the Oscars live indicates the influence that the Chinese government still wields over media.
MONEY
Stripe, a payments processing platform founded in 2010, said in a press release Sunday that it raised another $600 million, and the company said that puts its valuation at $95 billion. It is the latest sign that the coronavirus pandemic impacts just about everything, including the valuation of a top fintech firm like Stripe.
The government earlier this week reported that retail sales fell 3% in February compared to January, though sales last month were 6.3% higher than February of last year. If bar and restaurant sales begin to recover as more of these businesses reopen and if the government’s stimulus package starts to take hold, retail sales could be poised to move sharply higher in the coming months, even if the torrid pace of e-commerce slows.
As the work from home trend has gains traction and momentum during the pandemic, Google appears like it’s embracing work from office. Google announced this week that it will invest $7 billion on new offices — and data centers — throughout the United States this year including $1 billion in California. Assuming the pandemic recedes, we’re going to find out if the work from home trend is durable and just how much the traditional office market will return.
SPORTS
As the NBA begins its stretch run to the postseason, the Brooklyn Nets look just about as strong as any team. According to FanDuel Sportsbook, Brooklyn now is the clear favorite win the Eastern Conference, and are a close second favorite to the Los Angeles Lakers to win the NBA championship. However, the Lakers, ultimately, are still the team to beat.
We probably won’t see a Cinderella team make it to the Final Four in this year’s NCAA men’s basketball tournament. That doesn’t mean we won’t have upsets — including a number one seed — along the way, but I do think most of the top ranked teams are a clear cut above the rest of the field this year. Here are my predictions for the tournament.
The NFL’s Buffalo Bills reportedly signed former Chicago Bears quarterback Mitchell Trubisky to a one-year deal, ending a tumultuous four years for Trubisky in Chicago. Trubisky, who the Bears selected with the second overall pick in the 2017 draft, was 29-21 as a starting quarterback for Chicago — he will now back up Buffalo quarterback Josh Allen. Here’s why I like this signing both for Trubisky and for the Bills.
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)