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The Daily News Of TV Sales

December 20, 2016

TVs ARE INCREASINGLY ONLINE AS WELL

BETTER APPS HELP DRIVE GROWTH

Television sets are no longer simple screens controlled by a tuner—they’re increasingly connected to the Internet either directly as Smart TVs or via a connected device. The latest Connected Home Forecast from The NPD Group predicts that by the end of 2019, 238 million installed devices are expected to be connected to the Internet and able to deliver apps to TVs, representing 59% growth from 2015 to 2019. Connected TVs are projected to drive 45% of the growth over the coming four years, while less expensive, content-heavy streaming media players are projected to drive 35% growth.

The rate of connecting these devices is projected to increase from 70% in 2015 to 80% of installed units by the end of 2019, driven primarily by hardware prompting connectivity, an increase in quality app programming from TV networks, and improvements to user interfaces.

“With an ever-increasing number of connectable devices expected to be connected to the Internet, viewers will have the ability to choose their preferred option instead of using the only device they have attached to their TV,” said John Buffone, executive director, industry analyst, NPD Connected Intelligence. “This shift will inevitably result in diminished usage for some devices,” he added.

Beginning in 2016 and through the remainder of the forecast period in 2019 NPD’s forecasters expect streaming media devices will be found in more homes than any other connected TV device. With multiple options available from industry leaders such as Google, Roku, Amazon and Apple, NPD expects 43% of U.S. Internet homes will own at least one streaming media player by the end of 2019. However, Roku and Google’s Chromecast have expanded beyond streaming media players to take advantage of the growth in connected TV sales as well. As such, the forecasters say a consolidation of operating systems has begun with more than ten TV manufacturers opting to partner with Roku and Chromecast, as opposed to manage their own app eco-system.

“The integration of streaming media player operating systems into TVs points to the beginning of a consolidation of operating systems that app developers will need to focus on in order to reach their audience,” said Buffone.

As previously noted, broadcast and cable networks are getting high marks for making better apps so viewers can watch their desired shows on Smart TVs and connected devices. Perhaps having fewer operating systems will allow for even better apps to engage viewers.

ADVERTISER NEWS

Home builder Lennar Corp. Is closely watched as a barometer of the health of the housing industry and the company’s just-released quarterly results suggests that sector of the economy may be quite good. Deliveries of new homes were up 7%, new orders rose by 9% and backlog grew by 15% with the dollar value of backlog up 17%. Its CEO sees the market in “slow and steady recovery”……Although the market for traditional sedans has fallen this year, Automotive News reports Chevrolet has sold more Malibus to retail customers than in any year since the nameplate was revived twenty years ago. Although the Toyota Camry and Honda Accord still lead the segment, the Malibu is up 12% in sales so far this year while the rest of the segment is down 14% (with the Camry down 9.4%)......In other Chevy news, it will unveil the next generation of the Traverse at the Detroit Auto Show next month; it’s the first redesign for Chevy’s biggest crossover vehicle since it was launched in 2008……Caleres, which changed its name from the Brown Shoe Company last year, is buying Allen Edmonds and its chain of 70 stores from equity firm Brentwood Associates. Caleres (Latin for “passion”) currently operates over 1200 footwear stores under various banners including Famous Footwear and Naturalizer……You’ll remember Mylan, which ran into a firestorm of criticism over its pricing of the EpiPen (which had used TV advertising with a harrowing commercial showing an attack from the victim’s point of view). The company has just introduced a generic version of the treatment for about half the wholesale acquisition cost of the original that will reach druggists this week. It’s not yet clear if TV will be part of the effort to launch the cheaper version…… McDonald’s is teaming with UberEATS for a test of delivery from over 200 restaurants in the Orlando, Tampa and Miami markets starting next month. Nation’s Restaurant News reports that after launching about a year ago, UberEATS is now in operation in 29 U.S. markets……Chicago-based Portillo’s is in expansion mode with its 50th unit due to open in the Twin Cities market, its seventh state of operations, next summer. NRN says the chain targets markets where former Chicago residents or visitors may now live based on sales from its online business. “We align it where there’s already some brand awareness,” the chain’s CEO said. Locations average a huge volume for restaurants, almost $9 million annually……BJ’s Wholesale Club is starting online ordering for deli and bakery orders and customers who are not current members can get a 90 days free trial.

NETWORK NEWS

ABC and sister network ESPN are introducing The Bachelor Fantasy League Sweepstakes game for the upcoming season of The Bachelor. Players will be able to sign up for free and form leagues to predict the top four women who make it to the hometown dates portion of the season. The game can be played through ABC’s web site or within the ESPN app. The next season of The Bachelor starring Nick Viall will premiere on Monday, January 2nd on ABC……The list of movie-to-TV series keeps growing with the addition of a new project from NBC. The network is developing a reboot of Single White Female, the cult classic from 1992 starting Bridget Fonda and Jennifer Jason Leigh. The updated soapy psychological thriller will be set in San Francisco and will be written by Eric Garcia, who is also executive producer on the project……Rouge One: A Star Wars Story star Felicity Jones has been picked to host the first Saturday Night Live of 2017. Jones will be joined by county music singer Sturgill Simpson as musical guest for the January 14th SNL episode……This past weekend’s Saturday Night Live had the best ratings for the program since November 12th. The show hosted by Casey Affleck posted a 2.4 18-49 Nielsen rating……ABC has placed a 10-episode order for a new drama for the summer of 2017 called Somewhere Between. The series will follow Laura Price, the lead character, who knows just when, where and how her daughter will be killed. Despite having this information, her daughter’s actions keep her directly in the path of her killer. A cast for the series has yet to be announced……Howie Mandel’s All-Star Comedy Gala will premiere on the CW Monday, January 16th at 8 PM (ET). Comedians Jay Pharoah and IIiza Schlesinger will perform stand-up routines on the special. The CW has partnered with Just for Laughs to pay tribute to some of their own favorite comedians from the 35-year history of the festival, including Jim Gaffigan and Wanda Sykes……William Valdès and Ela Velden will host Feliz Navidad Con Mix5 on Univision this Christmas Eve. The special will also feature the first concert broadcast of La Banda’s second season winners, who will also discuss their family Christmas stories with fans. The special will air Saturday, December 24th at 8 PM (ET)……Three CW dramas were able double their Nielsen 18-49 ratings when seven-day DVR playbacks were factored in. Supernatural jumped from a 0.6 to a 1.2 and both Jane the Virgin and The Vampire Diaries doubled from a 0.4 to a 0.8 for the week of December 4th.

HOLIDAY NEWSPAPER ADS DOWN SHARPLY

Kantar Media data cited by eMarketer shows an overall 13% drop in retailers’ holiday media spending on TV, newspaper, radio and digital display ads between November 21 and December 11. The biggest factor, though, is a big drop in newspaper advertising. Excluding newspapers, holiday media ad spending on those measured channels would have declined just 3% to $945 million.

“Newspapers have been a challenged medium with declining circulation and revenue,” said Jon Swallen, Kantar Media’s chief research officer, in an interview with eMarketer, adding that retailers have so far been reducing newspaper ad spending at a slower rate than other advertisers. Retailers have been one of the top two to three advertiser groups that newspapers rely on for ad revenue, he said. “As newspaper circulation declines, that [local market] coverage becomes smaller. It’s down to the point where retailers now see the return on investment is no longer there.”

Retailers’ spending on newspaper ads so far this holiday season has declined more than 30%, the biggest decline in at least four years, Kantar Media data showed. The measure declined 15% in 2015.

In total, newspapers’ share of retailers’ holiday media spending measured by Kantar in November and December dropped to 14% in 2015 from 17% in 2014 while digital’s share jumped four percentage points to 26% in 2015, Swallen said. TV saw its share decline by two percentage points to 44% last year. “Retailers may have reached a tipping point in terms of their use of newspaper and share of ad budget,” Swallen said.

OTT CLAIMING MORE TV VIEWING

Total use of television was down by 0.9% in November on a total day basis for Adults 18-49, according to crunching of Nielsen data by analyst Brian Wieser at Pivotal Research Group, although viewing was up by 0.2% among all Households. National TV commercial viewing among adults 18-49 fell by 3.2% year-over-year on a total day basis, and by 4.5% on a prime time-only basis. “Much of the gap between total viewing of TV and national commercial ratings is driven by the growth in consumption of TV delivered over-the-top [OTT], most of which is either ad-free or includes ads not included in commercial viewing metrics,” noted Wieser.

Consumption of TV via Internet-connected devices, including Roku, Apple TV and Google’s Chromecast rose by 61% year-over-year to account for 8.4% of total TV use among adults 18-49 on a total day basis vs. 5.1% in November 2015 and 2.7% in November 2014. Comcast’s NBCUniversal produced the largest share of C3 commercial impressions during November with a 14.7% adults 18-49 share among national media owners, vs. 14.9% during the year-ago period on slightly higher ad loads (11.4 minutes per hour in November 2016 vs. 11.3 minutes in November 2015). On a comparable basis, Viacom fell from 14.5% to 14.1%, Time Warner was down from 11.4% to 10.6%, Disney was down to 10.5% from 11.3% last year. Fox Networks Group was up from 9.6% to 10.8%, while CBS Corp. was down from 7.2% to 6.6%. Discovery was up from 6.0% to 6.1%. Scripps Networks Interactive was up from 4.3% to 4.4%, and AMC was down from 3.4% to 3.1%. Once again, says Wieser, “independent networks collectively gained share, rising from 8.2% to 9.0%, as relatively new independent multicast networks Escape and Grit accounted for 0.8% of all national TV ratings in the month vs. 0 in the year-ago period.”

ACCOUNT ACTIONS

Hulu is consolidating its media planning and buying under Universal McCann. Razorfish and Zenith previously worked on the businesses. Hulu’s media spend is in the hundreds of millions, according to people with knowledge of the matter……MDC Partners’ Kirschenbaum Senecal Bond + Partners will retain its lead creative agency status on the BMW account, however, Omnicom's Critical Mass has been selected to handle its web design and development, Ad Age reports. The web development account was reported to be worth $10-15 million.

GM SLOWING DOWN PRODUCTION

General Motors announced that it will shut down five plants for various periods in January to control growing inventories of less popular models. According to the Detroit News, shut for three weeks will be the Detroit-Hamtramck plant in Michigan and the Fairfax factory in Kansas. Down for two weeks will be the Lansing Grand River plant in Michigan, and down for a single week each will be the Lordstown plant in Ohio and the Bowling Green factory in Kentucky.

DONE DEALS

Tegna has named David Hunt president and general manager of WBIR (NBC) Knoxville, TN. Hunt had been director of local sports strategy at Tegna Media since 2013……Also at Tegna, Dean Ditmer has been named president and general manager of KPNX (NBC) Phoenix, AZ. Ditmer previously served as director of sales at KUSA (NBC) Denver, CO……Nexstar Broadcasting Group announced that Eric Thomas has been promoted to vice president and general manager of WGMB (FOX), WBRL (CW) Baton Rouge, LA, and associated digital services, as well as overseeing Nexstar’s joint operating agreement with White Knight Broadcasting’s WVLA (NBC) and KZUP (Ind.). Thomas was previously VP/GM of Nexstar’s KLBK (CBS) Lubbock, TX, where he was responsible for overseeing Nexstar’s joint operating agreement with Mission Broadcasting’s KAMC (ABC).

AVAILS

WFTX FOX 4, A Scripps owned station in beautiful Southwest Florida is seeking a high-energy Account Executive. The ideal candidate will have broadcast experience as well as an intense desire to prospect, develop and grow new direct business within the market. Strong time management and organizational skills are required. Please send cover letter and resume to LSM at Don.Wargo@. EOE

Buckeye Broadband, Toledo Ohio is looking for a qualified candidate to fill a Manager, Local Sales position. We're searching for an energetic and creative individual to manage our advertising sales team as we imagine and craft the future of TV advertising. 5 years Media Sales Management experience in the same or similar medium, a high level of computer skills and a history of developing non-traditional revenue are required. CLICK HERE for more details or to apply now. EOE.

Weigel Broadcasting, Milwaukee (CBS-58, WMLW, MeTV, This TV, BOUNCE TV and ) seeks an experienced Account Executive passionate about selling television and digital as well as generating new business within the Milwaukee market. Candidates should have a minimum of two years' of media sales experience, the ability to sell promotions and generate nontraditional revenue, and the creativity to develop targeted, customer focused marketing solutions using multiple media products including, but not limited to, television and web. Get more details or CLICK HERE to apply now. EOE

WDBJ7 (Gray Television), the #1 rated legacy station located in the beautiful southwest region of Virginia (Roanoke-Lynchburg) seeks a dynamic Account Executive to join our award-winning teams. The AE is responsible for generating and closing new local direct TV business, as well as selling digital advertisements. The ideal candidate has strong communication and presentation skills and motivation to become the best! Outside media sales experience preferred but not required. CLICK HERE to learn more or apply now. Pre-employment drug testing and valid driver’s license required. EOE.

Hawaii News Now (KHNL/KGMB, the CBS and NBC affiliated television stations), the dominant news organization and premier multimedia company in Honolulu, Hawaii has an immediate opening for TWO Sales and Marketing Executives. We value passion, creativity, and persistence, and offer the right self-motivated person an exceptional opportunity to begin or advance your career. We offer a generous compensation and benefits package, commensurate with experience. Qualified applicants, please APPLY ONLINE and attach cover letter & resume. No phone calls please. EOE-M/F/D/V.

A new lawsuit claims that Uber employees use passenger data to stalk celebrities. When I called to complain, Uber said, ‘Don’t worry, Conan, we didn’t mean you.’

--Conan O’Brien

The CEO of Twitter, Jack Dorsey, did not meet with Donald Trump, I’m guessing for the same reason Dr. Frankenstein never went out of his way to meet the monster.

--Jimmy Kimmel

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SPOTS N DOTS

The Daily News Of TV Sales

December 20, 2016

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