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The Daily News of TV Sales

August 31, 2016

KBB: AUTO SALES DROP 2% IN AUGUST.

GM LIKELY DOWN FOR 5th CONSECUTIVE MONTH

As we reported Tuesday, a year to year comparison by Kelley Blue Book shows that auto sales for August are expected to be down by a total of 1.54 million units from August 2015. That will result in a 17.3 million seasonally adjusted annual rate, or SAAR.

Kelley Blue Book analyst Tim Fleming looks for steady sales the rest of the year. “Overall, sales are expected to remain steady in the mid-17 million SAAR range despite a drop in August 2016.”

The mix of sales is divided, with demand for ‘utility’ vehicles continuing to grow while car sales are falling. Fleming added, “Kelley Blue Book will keep an eye on a few key factors, including increased fleet penetration in 2016 combined with flat retail demand, rising incentives from automakers, and used car prices, which have yet to respond to the growing supply of off-lease vehicles. Any change to the trajectory of these factors could speed up the eventual decline in new-car sales for the industry.”

GM is expected to post declines for the fifth consecutive month. Fleming noted, “General Motors has lost nearly a full point of market share this year, although this is fully attributable to reduced rental sales, which is less profitable.” The report points out that GM has dropped from the top automaker of for rental vehicles to #4 this year.

While GM suffers, Hyundai-Kia celebrates with a 2% increase over August 2015. The popularity of the Hyundai Santa Fe and the Kia Sportage crossovers will fuel the increase, while cars like the Kia Soul and Optima are trending down.

Compact utility vehicles are expected to increase market share to 19% in August, coming at the expense of mid-sized cars. Consumer demand for the compact utility vehicles is projected to grow by 4%, lower than the double digit growth of the segment in recent years, but still a healthy increase, helping offset the drop in demand for mid-size cars. That category is expected to fall by 17% with the Honda Accord and the Chrysler 200 leading the way.

CONSUMER CONFIDENCE STRONG

Consumer Confidence is currently at the highest level since September, 2015 according to new results issued by the Conference Board. That measure has two components: the Present Situation index that measures peoples’ current circumstances and the futures index which looks at what respondents expect six months from now. This month’s present situation index hit 123, up from 118.8 last month, and was at the highest level in almost nine years. Consumers are still somewhat concerned about what might be ahead, however. The future index was up from 82 to 86.4, but that measure has been higher in recent years.

ADVERTISER NEWS

Mondelez has dropped its bid for Hershey after the trust that has voting control over that company showed no interest in Mondelez’ latest bid to create what would have been the largest candy company in the world. Without the extra size Hershey would have provided, Mondelez is seen as a potential takeover target itself, possibly for former sibling Kraft which has since merged with Heinz……Chevrolet has confirmed the Bolt battery-electric hatchback will reach dealers before the end of the year—there had been some reports the model would be delayed into 2017. Chevy has said the Bolt can go more than 200 miles on a single charge. It’s priced as low as $30,000 after a $7,500 federal tax credit……Nordstrom has struck a deal to be the exclusive department store carrying J. Crew women’s apparel and accessories, which had been available only in the brand’s own retail stores. Nordstrom has been carrying J. Crew’s Madewell brand at 76 of its stores and ……In another exclusive deal, Ulta Beauty will become the only retailer to carry Proactiv products, in select stores and online at . Proactiv is the leading brand of acne treatments and has mostly been publicized through direct response advertising……In yet another acquisition for Alimentation Couche-Tard’s Circle K c-store business, it’s buying the Louisiana-based Cracker Barrel chain of convenience stores (same name, but a different company from the Cracker Barrel Old Country Store restaurant chain). That will add 53 more sites to the growing Circle K banner; of course last week in a much bigger deal Couche-Tard announced it will acquire over 1,000 CST Brands’ locations……In Chipotle’s latest attempt to win back some of the lost traffic it’s incurred since its food-safety problems, the chain will offer a free soft drink or iced tea to high school or college students during September. It’s one per person per visit and the students will need to show a valid school ID……Papa John’s might be thought of as the pizza chain most identified with football, but Pizza Hut is introducing a new box that includes a printed flick football playing field with goal posts, a scorecard and punch-out footballs to allow customers to play finger-football. Cowboys’ kicker Dan Bailey has been signed to help promote the gimmick……Blaming “headwinds in the domestic mall business,” Abercrombie & Fitch said same-store sales were down 7% at its namesake stores and down 2% at the Hollister banner that had been performing better in recent quarters. Results were better in direct-to-consumer sales which were up 23% on top of 21% growth in the quarter a year ago.

NETWORK NEWS

The 23rd season of Dancing with The Stars has filled out the celebrity contestant list with Olympic gold medalists Ryan Lochte and Laurie Hernandez. The pair will be joining Amber Rose, Rick Perry, Maureen McCormick and Vanilla Ice among others. DWTS season 23 starts on Monday September 12th at 8 PM (ET)……NBC has announced that the next season of Grimm will be the last. The drama has been a staple for the network since 2011……The New Celebrity Apprentice with new host Arnold Schwarzenegger will premiere Monday, January 2nd at 8 PM (ET) on NBC. Appearing as advisers will be Warren Buffett, Steve Ballmer, Tyra Banks, Jessica Alba and Schwarzenegger’s nephew, entertainment attorney Patrick Knapp Schwarzenegger……NBC’s Oz-inspired series, Emerald City will debut on Friday January 6th at 9 PM (ET) with a 2 hour special. NBC is betting Emerald City will be a good fit for the Friday night block of sci-fi adventure programming……Variety is reporting that Paget Brewster is returning as a series regular on Criminal Minds. Brewster was a regular cast member from 2006 to 2012 and has made guest appearances on the show since then. She became a regular cast member after the shows recent dismissal of Thomas Gibson. Criminal Minds will begin its new season on CBS September 28th at 9 PM (ET)……The ratings race on Monday night was pretty much a repeat of the previous Monday. According to Nielsen, American Ninja Warrior on NBC matched the previous Monday night with a 1.9 A18-49 rating while ABC’s Bachelor in Paradise remained steady with a 1.6. So did Mistresses with a 0.6. Running Wild with Bear Grylls delivered a 1.4 improving a tenth of a point from the previous Monday. So You Think You Can Dance on Fox was even as well with a 0.7. Both CBS and CW scheduled reruns……Zach Braff of Scrubs is getting a shot at another comedy. The series is tentatively named Start Up and has a put pilot commitment from ABC. Braff is set to direct the series and is reuniting with Scrubs co-executive producer, Matt Tarses.

DONE DEALS

Robert “Bob” Leider has returned as EVP and GM of Sunbeam’s TV stations; WSVN Miami, WHDH Boston and WLVI Boston. This comes one day after it was announced that Chris Wayland would be leaving the same job for the VP of Group Operations at Tribune. Leider has been semi-retired from Sunbeam since 2014 after leading the company for 40 years, and has served in a VP/consultant role for Sunbeam in the interim....,Veteran broadcaster Les Vann will assume the GM role at WFTX FOX4 in Ft. Myers, effective 9/12. Vann’s GM experience includes WISH Indianapolis, WKRC Cincinnati and WJCL/WTGS Savannah, GA. At WICS in Springfield Vann worked every job in the newsroom from intern to news director....WCVB, Boston has hired Kelly Ann Cicalese as a meteorologist for its weekend morning newscast beginning October 22. Cicalese comes to WCVB from WSAZ Huntington-Charleston West Virginia. Prior to that she was on the weather team at KGWN Cheyenne, Wyoming.

THIS AND THAT

Although franchisees are a huge part of the restaurant business, QSR magazine notes a study done by Franchise Business Review has found that satisfaction among 89 brands worth of foodservice franchisees runs 5-10% behind other industries. The study noted that “money is not a nonfactor, but it is far from the most important one in franchisee satisfaction.” Part of the problems may stem from the entrance of private equity groups taking over franchisors and the fact the buyers may be looking for a quick return on their investments. Currently, franchisors that rank as favorites among franchisees are Culver’s, Kona Ice, Zaxby’s, Captain D’s, and Ground Round……A J.D. Power study of satisfaction among wireless users finds that incidences of network problems are dramatically higher in urban areas, driven by younger, high-usage consumers. Customers report 15 problems per 100 connections in urban areas compared to 12 PP100 in rural areas and just 10 PP100 in the suburbs. And because younger users are heavier consumers, the 18-34 demo averages 17 PP100 compared to just 10 PP100 among 35+ users. Power divides the nation into six regions and finds Verizon Wireless ranking highest in five of the six, with U.S. Cellular seen as best in the North Central region. Power also has found customers are becoming less tolerant of problems—24% of customers who experience more than 12 PP100 say they “definitely will” switch carriers……Millennials have been reported before to be somewhat less interested in buying cars than preceding generations and American Banker notes countless surveys have also found they are not fans of big banks either. But now Chase bank is teaming with TrueCar for a car-buying app called Chase Auto Direct that layers auto financing onto online car shopping. The app is currently available in 30 states and will roll out into the rest of the country by next year. Approved buyers are routed to a network of dealers affiliated with Chase and can walk in to already-finished paperwork at the dealership. Chase currently works with about 14,000 dealerships with indirect lending, meaning Chase lends to the dealers and the dealer lends to the customer after tacking on a few basis points to the interest rate.

OPTIMISM FROM AFAR

Warc, a London-based research firm, has been examining the advertising market in the U.S. and is estimating final growth of 5.8% for the year, the fastest pace in six years, with the most robust growth coming from television and digital media. TV is seen as outpacing the overall advertising universe with 6.6% growth.

Of course, political advertising and the Olympics are helping to make this year strong, and without either next year, overall television revenue is expected to dip by 4.5%. And in that year, Warc projects growth of 12.5% in digital which will then overtake total television revenue.

Warc predicts media losing revenue this year are radio, expected to be down 2.8%, newspaper, off another 12.7% after many years of declines, and magazines, down 12.4%.

WEEKLY RATINGS

NBC continues to be the king of prime time for the week of August 22 according to the Nielsen ratings. America’s Got Talent on Tuesday did a 2.4 A18-49 rating and on Wednesday, AGT got a 2.1. Making the programs number 1 and 2 for the week. The Sunday and Wednesday runs of Big Brother on CBS both scored a 2.1 for 3rd and 4th position. NBC finished out the top five with a 2.0 for American Ninja Warrior on Monday. FOX won the ratings race with NFL preseason football (2.0) Sunday afternoon, while NBC’s Sunday Night Football pulled at 1.8 rating and the same for the Thursday night game. CBS NFL preseason entry on Friday delivered a 1.1. The premiere of Better Late Than Never on NBC finished just out of the top 10 with a 1.6 rating. ABC’s best showing was Bachelor in Paradise Monday night with a 1.6 in the demo and for FOX it was MasterChef with a 1.3. CW, Telemundo and Univision did not place a program in the top 25 for the week.

VIEWERS ARE WATCHING FEWER CHANNELS

A survey done by TiVo’s Digitalsmiths shows that 83% of consumers watch 10 or fewer channels, with 2% fewer respondents watching 11 to 20-plus channels. That’s down 1.5% versus a year ago; 2.0% from two years ago, and 4.1% from three years ago. The number of those who “feel overwhelmed” by the number of channels available is growing slightly - 32.3%, up from 28% three years ago.

But are viewers still cutting the cord? Just 7.2% of pay TV subscribers plan to cut services altogether. Over 50% plan to stay with their current pay TV provider. 8% of pay TV subscribers switched providers in the last three months.

The survey involved 3,114 viewers in the U.S. and Canada and was done in the second quarter.

AVAILS:

ABC Full Circle, the business development team of ABC National Television Sales, is looking for an experienced, career-minded, self-motivated sales professional to join our team in the capacity of Director, Sales in our Chicago location. This person is responsible for all aspects of new business development including, account prospecting, account management, account acquisition, executive overviews, needs assessments, proposal generation, and contract negotiations. FULL DETAILS HERE. Minimum of 5 years’ successful business development experience in broadcast and digital platforms. CLICK HERE to apply. Job identifier: 374116BR. EOE.

WUVN in Hartford, CT is searching for an Integrated Marketing Solutions Consultant. This position is responsible for representing Entravision communications Corporation’s media properties, and calling on local advertisers and advertising agencies in a professional manner, to sell advertising, event sponsorships and marketing campaigns. Knowledge of Spanish, Hispanic culture, and Spanish media is a plus. Bilingual English/Spanish is preferred but not required. At least 2 years of experience in sales preferred. Send resume/cover letter to: Carla Cooper, ccooper@. Or, fax resume to 860-278-1811. No calls please!

KOLD, the Raycom-owned CBS affiliate in the top 75 market of scenic Tucson, AZ seeks a dynamic leader to serve as the Vice President and General Manager. Find out why Tucson is a great place to work and play! From hiking/biking to a great food scene to beautiful weather with hardly any humidity, this market is a great opportunity! Te General Manager will be responsible for providing leadership, a forward-thinking vision and driving innovation to improve station performance. We offer competitive compensation and benefits programs. APPLY HERE. No calls please. EOE-M/F/D/V.

Raycom Media owned WMC-TV NBC in Memphis, TN, WMC-TV Digital and BOUNCE-TV has an incredible opportunity for an experienced LSM that is ready to move up to our open Sales Manager position in the 50th market. Must be a team leader with a clear focus on New Business and Digital development providing client advertising solutions across multiple sales platforms. Well-developed coaching and team building skills and the ability to plan and achieve sales objectives are imperative. Qualified applicants, CLICK HERE to apply. EOE.

KCTV5/KSMOtv in Kansas City is looking for the right Account Executive to join our team in Fairway, KS. The right candidate will have a minimum of two years' experience in advertising sales, and the ability to set priorities and thrive in pursuing prospects to develop marketing strategies that include our full portfolio of solutions including on-air, events and digital. We’re the home of the Kansas City Chiefs, with over 32 hours of locally produced newscasts each week. Qualified candidates can apply at – job JR02419 EOE

Albuquerque market leader KOAT-TV is looking for experienced salesperson to sell its Spanish language station, “Estrella TV”. Candidates must have sales experience, be Spanish language fluent and self-motivated. Experience in TV/Radio sales and solid negotiation skills required. KOAT offers opportunity for career advancement, by working for one of the nation’s largest broadcast companies, Hearst Television. CLICK HERE for more information or to apply. EOE

Media General, Tri-Cities, TN seeks a highly motivated, creative thinking, success driven sales manager to oversee all aspects of national sales in the Tri-Cities market. The position will also manage a 3-4 person local sales team. The right candidate for this position will have a Bachelor’s level degree along with a minimum of 3-5 years of experience in broadcast television or at a rep firm, a thorough understanding of the national sales process. Please apply online at careers. No phone calls please. EOE M/F/D/V

Apple next week is expected to unveil the iPhone 7. How’s the camera? asked Anthony Weiner.

--Seth Meyer

A developer in New York wants to build an IHOP on top of a Revolutionary War cemetery. IHOP’s CEO said, 'It makes sense, we’ve killed more Americans than the British ever did’. -- Conan

Spots n Dots

The Daily News of TV Sales

August 31, 2016

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