Weekly Recap: Pink's Bottom Line on Media, Money and Sports
Top items and takeaways from the week
Thank you to everyone for your support — we saw some of our best ever open rates on the newsletter this week. Now, here are the top items and takeaways from the week.
MEDIA
Movie theaters in the United States continue to struggle as domestic box office grossed just $11.4 million this past weekend, up 3.5% from last week, but down a staggering 89% from the same weekend a year ago, according to data from Box Office Mojo. As coronavirus cases surge to record levels, I don’t expect to see much of an improvement at the box office for Thanksgiving weekend or, for that matter, Christmas weekend, which is usually one of the biggest weeks of the year for the movie industry.
Conan O’Brien will end his 28-year run as host of a late night talk show on traditional linear television, and he will take his talents to video streaming platform HBO Max where he will do a weekly program instead. I suspect that we’ll see more and more stars who grew to fame on traditional media move to these newer platforms like video streaming.
In another sign of the growing acceptance of sports gambling in the United States, Sinclair Broadcasting, owner of 21 regional Fox Sports Networks, will rebrand those networks as Bally Sports. That’s after Bally’s, a large casino operator, announced a partnership with Sinclair, a large local and regional broadcaster, on Wednesday. The deal between the two underscores just how important sports betting has become to both the broadcasting and the gambling industries.
MONEY
The nation’s red hot Initial Public Offering (IPO) market looks like it will add another big name to the recent list of well known companies with plans to go public as DoorDash, the ubiquitous food delivery service, recently filed its IPO prospectus. While the coronavirus pandemic has negatively impacted many businesses, DoorDash has been a beneficiary as consumers place more orders for food delivery as they go out less and stay at home more.
The average consumer will spend $691 on holiday shopping this year, down from $740 last year, but roughly the same as what was spent in 2018, according to the NPD Group, a market research firm. As consumer spending accounts for about 70% of economic activity in the country, slower holiday spending this year could potentially hamper the country’s nascent economic recovery.
Sales of existing homes rose 4.3% in October, compared to September, and surged 26.6% compared to October of 2019, according to a report Thursday from the National Association of Realtors (NAR). The median price of an existing home also increased sharply, up about 16% to $313,000 in October compared to the same month a year ago, according to NAR. Those higher prices, while indicative of an overall strong housing market, might have other implications — they suggest potential buyers at housing’s lower end could get priced out of the market.
SPORTS
The 2020 NFL season could perhaps serve as a referendum on the futures of two quarterbacks who happen to be playing against one another this Sunday. They are Carson Wentz of the Philadelphia Eagles, who was the second overall pick in the 2017 draft, and Baker Mayfield, who was selected as the overall number one pick in the 2018 draft by the Cleveland Browns.
For a number of years now in college football, the Mid-American Conference has played some of its games on Tuesday nights during the season. This past Tuesday was no exception as Buffalo beat Bowling Green in a blowout, 42-17. For those who didn’t watch the game — I suspect that includes every subscriber to this newsletter — you missed an outstanding performance by Buffalo running back Jaret Patterson, who rushed for 301 yards.
Although we’re in Week 11 of the NFL season, there doesn’t appear to be any clear favorite to win the NFC — the conference is wide open right now. Here’s why I like the Green Bay Packers to win the NFC and represent the conference in the Super Bowl.
Jeremy Pink currently serves as an advisor to companies in media and financial tech. He is 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. Jeremy 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)