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[Pages:3]The Daily News of TV Sales

Friday, August 30, 2019

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FOR AUTO DEALERS, NEW CARS PROVE UNPROFITABLE

DEALERSHIP ECONOMICS UNDERGOING SHIFT For the first time since the Great Recession, the average

U.S. new car dealer operated at a financial loss in 2018, Forbes reports. After adding the income from all dealership departments (i.e., new cars, used cars, service and parts), the typical dealer lost $13,000 last year -- compared to a $430,000 profit in 2013. To survive, dealers are now dependent on conditional income or "stringsattached" financial incentives from automakers. This shift in dealership profitability is reshaping an industry that's more than a century old.

Retailing new vehicles is unprofitable for most dealers, with the average car sold for a $735 loss as of the latest data. Consumer adoption of online shopping sites forced dealers to lower retail margins as buyers pursued the lowest prices.

New car pricing is another cause, with the average sale price reaching $36,000 in 2018, up from $31,000 in 2012.

The switch in consumer preferences to SUVs plus added electronic gadgets, with the latter partially mandated by government regulations, increased vehicle prices to levels out of reach for most car buyers. As prices rose, dealers lowered margins to make monthly payments affordable.

Compressed margins meant dealers needed another source of income, and automaker incentives quickly became the solution. To be eligible, dealers must comply with their respective automaker's brand standards. These vary by make but generally include almost all aspects of a dealership, like brand-compliant facilities, staffing, websites, shop equipment and other features.

For example, one automaker requires its dealerships' staff to answer any sales-related phone call within two rings, while another requires a specific imported floor tile in dealerships' service shops. These strict requirements ensure a consistent customer experience but come at a huge financial cost -- requiring dealers to build luxurious and cutting-edge facilities, purchase high-end technology, and hire staff among other cost outlays, which can add up to millions of dollars.

Given the cost of meeting brand standards, many industry observers question dealers' rationale for pursuing incentive income, but dealers explain that non-participation has disadvantages. They face reduced inventory allocation, less access to more desirable models, and the worst consequence of all -- reduced competitiveness with same-brand dealers.

If one dealer in a market takes the automaker's money, others must follow to match pricing. And as more dealers participated, selling vehicles below cost became a common practice, even worsening new car margins further. As one Florida dealer explained to Automotive News, "We are forced to put current customers into new vehicles much faster than normal. We lose $2,000 or $3,000 per vehicle to do it, but we need to hit our objectives to get our $100,000 bonus." So, if dealers don't pursue incentive-related sales objectives, their pricing will likely be higher than their competitors', and they'll quickly lose market share.

ADVERTISER NEWS Abercrombie & Fitch cut its full-year sales forecast

yesterday after missing Wall Street estimates in the second quarter, as the apparel maker grapples with the impact of increased U.S. tariffs on Chinese goods. President Donald Trump last week announced additional tariffs on $550 billion

worth of Chinese imports, including footwear and clothing. Abercrombie said these tariffs were expected to have a "direct adverse impact" on cost of merchandise and gross profit of about $6 million for the fall season... Gap's split with the Old Navy brand resulted in a public company that now encompasses the Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. Art Peck, president and CEO, confirms the company will keep the Gap name, while the spinoff, to become a standalone public company, will be called Old Navy, Fox Business reports. Gap is celebrating 50 years in business... Prompted by months of criticism and lawsuits claiming that its franchises are too lax in thwarting sexual harassment, bullying and other workplace episodes, McDonald's management says it will conduct computerbased and in-person training at all U.S. locations in October. CNN reports McDonald's is working with RAINN, a sexual violence prevention organization, to develop the program... Urban Outfitters is tapping into the cannabis beauty trend in partnership with the skincare label High, Agence FrancePresse reports. The fashion retailer has teamed up with the beauty brand to stock two of its signature products online at and in 43 Urban Outfitters stores across the U.S. The products, dubbed High Expectations Cannabis Facial Oil and High Five Cannabis Facial Moisturizer, both contain legal cannabis sativa seed oil extracts that are free of psychoactive substances such as THC as well as CBD... Puma has opened its first New York City store on Fifth Avenue. The 18,000-square-foot, two-story flagship features sneakers and gear for a range of sports and activities, and includes some items that are exclusive to the Manhattan store... Coors Light has inked a deal as the firstever beer sponsor for ESPN's College Gameday college football pregame show, AdAge reports. The deal, which includes in-show branding, comes as beer brands continue to break through barriers related to marketing in and around college campuses, including selling beer in stadiums... Five Below reported continued aggressive expansion in its second quarter. The tween and teen value-oriented retailer opened 44 stores, with plans to open 150 in fiscal 2019. Five Below ended the quarter with 833 stores in 36 states... With the addition of new distribution facilities in the past quarter, Dollar General's self-distributed DG Fresh initiative is now in 3,500 stores and should be in nearly a third of its store base, or 5,000 locations, by the end of 2019, Supermarket News reports. The DG Fresh rollout, which began in January, is aimed at improving margins and closing the gap between Dollar General's dry goods and its fresh products.

NETWORK NEWS

AVAILS

ABC News said yesterday it would televise just one WMC-TV in Memphis, Tenn., seeks a Director of Sales

night of debates among Democratic hopefuls for 2020, as to lead all aspects of its cross-platform sales efforts. The

opposed to the two nights it had previously planned, Variety qualified candidate will have a strategic vision for the

reports. ABC's Sept. 12 coverage will feature 10 candidates, WMC sales department, marked

reflecting the fact that a good chunk of those campaigning by specific, measurable goals.

for the job had failed to reach the next level of support to Minimum 5 years' experience in a

participate. The event will also be televised by Spanish- broadcast, digital sales or marketing

language broadcaster Univision. The two networks will role. Must love sales, developing

telecast the event between 8 PM and 11 PM (ET) from and empowering teams, and collaborating with peers to

Houston... The Masked Singer: Super Sneak Peak will deliver above and beyond expectations. CLICK HERE for

air on Fox on Sunday, Sept. 15 at 8 PM

more info or to apply. EOE/M/F/D/V.

(ET). Series host Nick Cannon and

Hearst Television's WMOR-TV, one of

panelists Ken Jeong, Jenny McCarthy,

the top-rated Independent stations in the

Nicole Scherzinger and Robin Thicke reflect on the fierce and swift impact the show has had on pop culture since making its debut, and Season 1 winner

`Organic' is a grocery term meaning `twice

as expensive.'

country, is seeking a dynamic Account Executive. The ideal candidate will bring both Broadcast and Digital sales experience and possess the drive and

T-Pain returns to the stage for a special

ability to thrive in a fast-paced, highly

appearance... Marsha Stephanie Blake

competitive market. A proven track

(When They See Us) is joining the sixth and final season of ABC's How to Get

Jim Gaffigan

record in new business development, along with strong negotiation skills, is

Away with Murder in a recurring role.

required. We are a destination company

The show's final chapter follows Professor Annalise Keating's in a great market that offers a tremendous opportunity for

(Viola Davis) class through their final semester in law the right person. CLICK HERE to apply. EOE.

school while the deception, fear and guilt binding Keating to ACCOUNT EXECUTIVE, Tampa, Fla. -- FOX O&O,

her students prove deadlier than ever. Co-starring are Billy WTVT: This opening at the top-rated station in Tampa

Brown, Jack Falahee, Aja Naomi King, Matt McGorry, requires the servicing of existing transactional accounts

Charlie Weber, Liza Weil, Conrad Ricamora, Rome Flynn along with the development of new broadcast and digital

and Amirah Vann... Jordan Donica is joining the cast of business. Candidate must be highly motivated and possess

The CW's Charmed as a new series regular. He'll play the strong presentation and prospecting skills. Position

role of Jordan, a mysterious law student/amateur boxer that requires prior broadcast sales experience, preferably in

the Vera-Vaughn sisters meet in the new world in which an LPM market. Excel and Power Point are a must, and a

they now find themselves. In the new version of Charmed, working knowledge of WideOrbit, PRIME Lingo and Kantar

after the tragic death of their mother, three sisters (Melonie Media a plus. College degree is preferred. CLICK HERE

Diaz, Sarah Jeffery, Madeleine Mantock) discover they're for more info or to apply now. EOE.

witches and stand together to fight supernatural battles... WJZY/WMYT, the Fox O&O television station in Charlotte,

ABC will air Peyton's Places: Volume 1, a compilation of N.C., seeks a highly motivated Account Executive who will

Episodes 1-6 of the ESPN+ original documentary series, on help local and regional advertisers achieve their business

Sunday at 3 PM (ET). Hosted by Trey Wingo, the 30-minute objectives through effective TV and digital advertising.

program features segments from the first six episodes of the The ideal candidate must be able to identify qualified

series produced by NFL Films and ESPN+ as part of the targets, use strong communication and presentation skills

year-long celebration of the National Football League's throughout the sales process, and maintain a high closing

100th season.

ratio. A four-year college degree is required. Media sales

experience is strongly preferred. Knowledge of media

CONSUMERS, CORPORATE PROFITS LIFT Q2

math, TV ratings and web metrics is a plus. CLICK HERE

Corporate profits turned around in the second quarter after for details or to apply now. EOE/M/F/V/D.

a slowdown early in the year and consumer spending rose News Channel 13 (KRDO, Colorado Springs) is looking for

faster than previously thought. That helped fuel solid, though a Director of Sales who is highly motivated with a proven

slower, economic growth as the U.S. expansion reached its record of success to oversee sales

10th anniversary, The Wall Street Journal reports.

revenue for television and digital and

A key measure of corporate profits -- after taxes, without continue a sales tradition of revenue

inventory valuation and capital consumption adjustments success. The DOS is responsible

-- rose 4.8 percent from the prior quarter, the Commerce for maximizing revenue goals,

Department said yesterday. That came after corporate strategic training and development

profits dropped 1.5 percent in both the first quarter of this of local and national sales, developing and leveraging

year and the fourth quarter of 2018.

client relationships, effective pricing and spot inventory

The 4.8 percent increase in corporate profits was the management, and nontraditional revenue programs. To

largest quarterly rise since the first quarter of 2018, just after be considered for the position, please APPLY HERE. Job

the tax overhaul was signed into law in late 2017. Year-over- Requisition #19-1230. No calls, please. EOE.

year growth was more muted however, with corporate profits

rising 1.7 percent in the second quarter.

See your ad here Tuesday! CLICK HERE for details.

8/30/2019

The Daily News of TV Sales @

PAGE 2

THE FAST-FOOD INDUSTRY HAS A WORKER CRISIS BLACKOUT ENDS: AT&T, NEXSTAR REACH ACCORD

If you think it's impossible for a company to lose more AT&T and Nexstar Media are connected once again,

than 100 percent of its workers every year, you've never Variety reports. The two companies, which have been at odds

worked in the fast-food industry, CNBC reports. At fast-food since early July over a carriage deal that affected around 120

restaurants, losing 100 percent of employees -- and then different affiliates of big networks, say they've come to terms

losing still more of the employees hired to replace those on a new multi-year deal that will put Nexstar stations back

workers -- is a common, and worsening, labor problem.

on AT&T's DirecTV satellite, AT&T TV and U-verse services.

The case of Panera Bread shows just how deep the A blackout of Nexstar properties had affected stations in

employee turnover issue is for restaurant companies. Panera 97 U.S. markets. The deal will soothe various network

loses close to 100 percent of workers every year, and by fast- executives, who have cited the blackout as a factor in recent

food industry standards that's considered good.

audience ratings.

"In the restaurant industry, turnover is

Earlier this week, NBC executives

130 percent, turning over more than a

suggested the Nexstar blackout was

full workforce every year," says Panera

giving ABC's Good Morning America

Bread CFO Michael Bufano. "We are a little under 100 percent, but still a huge number."

The official Bureau of Labor Statistics

People won't have time for you if you are always

angry or complaining.

an edge in viewership over its Today because more NBC stations were affected by the impasse with AT&T. They estimated the inability of Nexstar to reach

turnover rate for the restaurant sector was

consumers via DirecTV had caused a dip

81.9 percent for the 2015?2017 period,

of about 10,000 Today viewers in the key

but industry estimates are much higher, reaching 150 percent, and the problem

Stephen Hawking

advertiser demo, ages 25-54. The two sides squabbled in July, with

has gotten worse in recent years.

Nexstar accusing AT&T of demanding

Turnover cost estimates keep going up. The cost per terms better than those Nexstar offered to its competitors,

employee now is estimated by the National Restaurant while AT&T suggested Nexstar was seeking too steep a rate

Association at $2,000 per employee. Those figures will increase for its stations.

vary by restaurant type as fast-food employees are still

less expensive to turn over than those in upscale dining. GM'S UNION-REPRESENTED WORKFORCE FADES

Restaurant research firm TDn2K calculated replacement General Motors now employs fewer union-represented

costs at $2,100 to $2,800.

American workers than its domestic rivals for the first time

since the United Auto Workers started organizing Detroit's

ANALYST: ESPORTS A THREAT TO LEGACY MEDIA carmakers eight decades ago, Bloomberg reports.

Growing esports video viewing could cause big disruption GM's 46,000 UAW workers trails Ford Motor by about

and fractionalism of traditional media in the next few years, 9,000 and Fiat Chrysler by roughly 1,200, according to

according to one media analyst. Laura Martin, media headcounts provided by the companies. Ford surpassed GM

analyst at Needham & Company, wrote that traditional in 2014, and Fiat Chrysler overtook the No. 2 spot this year.

media, including TV, radio and magazines, will see erosion "GM was historically the largest by far," said Ron Harbour,

of younger viewers 18-25 moving more to esports platforms, senior vice president overseeing global automotive

Television News Daily reports.

manufacturing for consultant Oliver Wyman. "But they cut

These video games' competitions are where participants a lot of plants in the U.S. during bankruptcy. They have a

compete in front of a live audience, as well as being streamed. quarter of the plants they had in the 1970s."

Esport competitions are also televised on a number of

traditional TV networks.

WEDNESDAY NIELSEN RATINGS - LIVE + SAME DAY

Martin, in speaking to CNBC yesterday, said significant

cannibalization will occur in the next three to five years. It will

come from young gamers playing and watching competitions.

"One of three kids under the age of 25 is spending an hour

a day playing video games. And for every hour you play, you

are watching another hour," she said.

THIS AND THAT Google says it's creating a separate YouTube site to host

videos for children, following accusations that the videostreaming site has been violating children's privacy laws. The new site will be a web version of the YouTube Kids app that's been around since 2015, Google said... Recession fears are on the minds of a growing share of U.S. homebuyers, half of whom say they'll pause their search if a downturn arrives. Bloomberg reports that more than 36 percent of 755 active buyers surveyed this month expect the next recession to begin next year, according to a survey by . That's up from less than 30 percent in March.

8/30/2019

The Daily News of TV Sales @

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