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
ABC, CNN, Fox News, MSNBC, The New York Times and The Wall Street Journal are considered by the majority of consumers as mainstream news media, according to a recent survey by the Pew Research Center. For some background, mainstream media is generally assumed to refer to established, widely available news outlets in the country. In any case, partisan differences, which permeate just about everything in today’s society, don’t seem to apply at least when it comes to the definition of mainstream media.
Podcast advertising revenue increased 18.9% to $842 million in 2020 compared to 2019, according to the IAB US Podcast Advertising Revenue Study released today. Notably, according to that study, revenue grew 37% in the fourth quarter of 2020 compared to the fourth quarter of 2019, and the study projects ad revenue for podcasts to top $1 billion this year and reach $2 billion by 2023. That sharp revenue growth has led to consolidation in podcasting as big media and big tech have been scooping up podcast companies to participate in that growth. Look for that trend to continue.
Disney said in its quarterly earnings report this week that its Disney+ video streaming service has 103.6 million subscribers — that’s up from 33.5 million a year ago, and ahead from 94 million from last quarter. Notably, Disney said in early March that subscribers had already topped the 100 million mark, so the pace of subscriber growth of Disney+ appears to be slowing. Additionally, Netflix said in its quarterly earnings report last month that it experienced slower subscriber growth though it expected that growth to pick up in the second half of the year. In any case, the days of a breakneck pace of subscriber growth in video streaming appear to have ended.
MONEY
It is a mixed outlook for small businesses, according to the NFIB Small Business Optimism Index, which was released earlier today. The NFIB Small Business Optimism Index increased in April from March levels, and it is up strongly since January. However, in that same survey, small business owners surveyed said that their biggest challenge is hiring — they say they can’t find enough workers to fill existing job openings. Here’s what it means.
Inflation on the consumer level surged in April, according to the government’s Consumer Price Index (CPI) report released this week. Prices jumped 0.8% in April compared to March, and prices at the consumer level are up 4.2% over the last year, according to that report. Consumer inflation looks like a real issue at the moment — that could erode overall consumer spending power and ultimately impact the economic recovery.
I noticed on App Annie earlier this week that Gas Buddy was the top app in Apple’s App Store while Crypto.com was the top app in the Google Play store. Gas Buddy helps consumers locate inexpensive gasoline prices, and Crypto.com allows users to buy and sell cryptocurrencies. As such, the popularity of personal finance related apps — like Gas Buddy and Crypto.com — seem like they are becoming good barometers of overall consumer and investor sentiment.
SPORTS
The Preakness Stakes, the second leg of the Triple Crown of horse racing, will be run tomorrow under a cloud hovering above the sport. That’s because Medina Spirit, winner of the Kentucky Derby, the first leg of the Triple Crown, failed a postrace drug test and now could be stripped of that Derby victory. The Derby’s second place finisher, Mandaloun, will be crowned the Kentucky Derby winner if Medina Spirit is disqualified. However, there will be no possibility for a Triple Crown winner since Mandaloun is not running in the Preakness. All in all, it’s a mess for horse racing in America, which already had been fading in popularity in the United States.
The NFL will kick off its regular season this year when the defending Super Bowl champion Tampa Bay Buccaneers host the Dallas Cowboys on September 9. It will be an intriguing matchup as Dallas quarterback Dak Prescott will be returning to the lineup for the Cowboys having missed much of last season due to injury. As for the Bucs, that team will look to defend its title with quarterback Tom Brady at the helm for his second season in Tampa. There’s a strong possibility that the Tampa-Dallas season opener could be a preview of the NFC Championship game this year.
Golf’s second major of the year, the PGA Championship, begins a week from today at the Kiawah Island Golf Resort in South Carolina. According to FanDuel Sportsbook, world number seven Rory McIlroy is the favorite to win the PGA this year at +1100 and world number three Jon Rahm is the second favorite at +1200. They’re followed by three golfers — Jordan Spieth, Bryson DeChambeau and Justin Thomas — who are all at +1400, according to FanDuel Sportsbook. Here’s why I suspect either McIlroy or Spieth will win the PGA.
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)