BUSINESS NORTHWEST ARKANSAS JOURNAL To Market, To …

BUSINESS JOURNAL NORTHWEST ARKANSAS

Vol. 20, No. 25 ? February 20, 2017

? $2.00

To Market,To Market

KFSM-TV, Channel 5, to expand in growing NWA region

By Jeff Della Rosa

When he began teaching TV in the University of Arkansas journalism department in 1993, department chair Larry Foley said only two stations were offering local news. Now there are

four, and their geographic base has shifted. "Northwest Arkansas has certainly exploded in that time," Foley said. "There was a time when everything came out of Fort Smith. But stations are putting more emphasis on Northwest Arkansas."

See TV on Page 7

PRETTYVECTORS

INSIDE THIS ISSUE

Local team produces `Cook with Brooks' on AETN Page 8

Walmart continues to woo suppliers as a media buyer Page 12

LIST

Largest Television Stations Page 9

NEXT ISSUE: MARCH 6 - LAW

Largest Radio Stations Page 9

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NORTHWEST ARKANSAS BUSINESS JOURNAL

JOURNAL ENTRIES

Business buzz from around the region

Discrimination Suit Moved to Federal Court

Here's an update on a lawsuit we reported last month against Bailey & Oliver Law Firm of Rogers for an alleged violation of the Equal Pay Act. At the request of the defendants, it's been moved to the U.S. District Court for the Western District of Arkansas.

The firm and Sach Oliver, who owns the law office along with Frank Bailey, are the two named defendants. They filed their notice of removal Feb. 9, claiming the federal court has original jurisdiction over the matter.

Hannah Newell began working at Bailey & Oliver as a paralegal in July 2013, according to a complaint initially filed Jan. 10 in Benton County Circuit Court. Newell claims she was promoted to an associate attorney three months later after asking Oliver for more responsibilities as a lawyer. Newell is licensed and educated in England, according to the filing, but does not yet hold an Arkansas attorney's license.

Newell claims in the lawsuit Oliver told her the lack of an Arkansas license would not interfere with her job or hold her back in her role as a lawyer, and she would have the same responsibilities and pay as any other associate attorney in the firm. Newell resigned June 29, 2016.

Bailey & Oliver and Oliver individually are being represented by Fayetteville attorneys Robert Jones III and Kerri Kobbeman of Conner & Winters LLLP.

Newell is represented by Fort Smith attorney Joe Byars Jr. of Byars & Hall PLLC.

The case is assigned to District Judge Timothy L. Brooks.

Fayetteville Land Sale Nears $1 Million

The investors behind a planned independent living facility north of the Interstate 49/Highway 112 interchange in Fayetteville have closed on another property purchase adjacent to the site.

Entities controlled by Trey Jackson of Fort Smith and McCrary "Mac" Lowe of Tulsa acquired 20.23 acres from Legacy National Bank of Springdale for $969,708, or $1.10 per square foot.

The land is north of a 20.5-acre parcel at the end of Truckers Drive north of Sam's Club that's already owned by the investors, who are partnering with an unnamed developer to build the 106unit Willow Bend at Clear Creek. Lowe said "most all" of the development plan has been approved by the city of Fayetteville, and he is hopeful construction will begin this summer. The building timeline will last between 14 and 16 months, he said.

NORTHWEST ARKANSAS BUSINESS JOURNAL

The main building of the development will be 120,000 square feet, along with 26 cottages and 33 villas. Sizes of the freestanding buildings have not been finalized, Lowe said.

As for the recent purchase of adjoining land from Legacy, Lowe said the development plan for that parcel has not been determined. It partially borders property owned by Fellowship Bible Church of Northwest Arkansas.

"We are in conversations with the church to make sure whatever we do with that land is in everyone's best interests," Lowe said.

The Future is Coming

Billionaire businessman Donald J. Trump is the U.S. president, and the Chicago Cubs are the World Series champions. The current state of affairs certainly make this a unique time in the country's history.

But wouldn't you like to know what the future holds? If you're like every other person in business, of course you would.

You'll have a chance to do so Friday, March 3, in Fayetteville when Sheryl Connelly, a global consumer trends expert for Ford Motor Co., gives the Winthrop Rockefeller Distin- Sheryl Connelly guished Lecture at the University of Arkansas.

Connelly is Ford's in-house "futurist," an evolving academic and professional discipline. Her lecture won't be just about the auto industry, and she won't have a crystal ball. Connelly is recognized for her ability to identify consumer and lifestyle trends, changes in customer attitudes and behavioral patterns that directly impact business strategy.

Essentially, her job is to help one of the world's largest automakers take advantage of what's going on in a fast-moving world and profit from it. Sounds like a unique lecture we'd all want to hear.

The event starts at 7 p.m. at the Faulkner Performing Events Center and tickets are available to the public. w

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GUEST COMMENTARY

Do I have your attention now?

It would hardly

come as a surprise

that most businesses

wish to stand out in

some way. Some

businesses choose to

stand out through a

superior customer

experience, while

Angela Grayson

others choose to

stand out through

superior product offerings. However,

some companies also choose to brand

themselves in a manner that begs to be

noticed, and will choose a business,

product or service brand name that can

be downright shocking.

By and large, businesses have the

freedom to operate under any brand

name so desired. There is very little

regulation about acceptable brand

names companies may adopt. However,

if a company wishes to register the

brand name with the U.S. Patent and

Trademark Office (USPTO), there are a

number of rules that must be followed

in order for the brand to become a reg-

istered trademark. Namely, the pro-

posed mark shall not consist or com-

prise of "immoral ... or scandalous

matter ..."

Attorneys have been counseling cli-

ents against the hazards of attempting

to register immoral or scandalous

marks with the USPTO for years. In

fact, the provision dates back to the

original legislation in 1905, and a ban

on disparaging marks can be traced

back to the 1945 legislation. Both provisions have endured with lit-

tle fanfare or challenge -- but now, that's all changed. An Asian-American rock band called The Slants has challenged the constitutionality of this provision of the Trademark Act, and the U.S. Supreme Court will decide the case this term. For readers not current on racial slang, "slants" is a rather derogatory term for someone of Asian decent.

Although the immorality, scandalous and disparagement provisions have existed for years, the USPTO has not been consistent in how it interprets and applies this rule -- namely because human beings examine trademark applications and humans are subjective. If one were to scan the Trademark register, one would find numerous marks registered of questionable "morality," because "morality" is in the eye of the beholder. A good example of this is the Washington Redskins mark. The mark has been used for over 80 years and had been on the USPTO Register much of that time. But in the early 2000s, the mark was challenged on grounds that the mark was disparaging to Native Americans, and was recently ordered canceled. I recall my early days as a patent examiner at the USPTO. My fellow colleagues and I would routinely start our day arguing about the latest political story to appear in The Washington Post. The Redskins controversy was just beginning to brew, and we would spend hours debating the merits and fairness of the case. The issue

is clear as day for some, but for others, the issue remains unfair, perplexing and complicated.

Fast forward to 2017. A band called The Slants wants to register the mark as the name of their rock band. The Slants was used as an unregistered mark by the band years prior, and the band wished to obtain the benefits that a USPTO registered mark could provide. The USPTO trademark examiner refused to register the mark on the grounds that the mark was immoral, scandalous or disparaging. The band challenged the decision on constitutional grounds that the refusal violated the band's freedom of speech. This case was open and shut, until it wasn't. The U.S. Supreme Court will likely provide one of two outcomes -- keep the status quo or invalidate over 100 years of statutory law.

By all accounts, this case is one of the most closely watched cases in intellectual property at the moment. If the U.S. Supreme Court decides to invalidate the immorality, scandalous and disparagement provision of the Trademark Act, we could see new opportunities for branding businesses, products and services that will most certainly make you take notice. Angela Grayson is the principal and founder of Precipice IP PLLC, a legal firm in Bentonville. She is a registered patent attorney and is admitted to the U.S. Supreme Court Bar. She can be reached at 479-259-2966 or angela.grayson@. The opinions expressed are those of the author. w

BY THE NUMBERS

304,670

Number of homes with a working TV in Nielsen's 11-county Designated Market Area, which includes counties in Northwest Arkansas, the Fort Smith area and eastern Oklahoma.

460,000

Weekly viewers statewide of the Arkansas Educational Television Network (AETN), which now carries the locally produced

program "Cook With Brooks," hosted by Chef Steven Brooks.

41% Increase in research spending over the past five years at the University of Arkansas.

BNWA USINESS

JOURNAL



February 20, 2017 ? Volume 20, Number 25

Roby Brock ? roby@ CEO

Michael Tilley ? mtilley@ PRESIDENT & EXECUTIVE EDITOR

Rob Gutterridge ? rgutterridge@ EXECUTIVE VICE PRESIDENT & NWABJ PUBLISHER

EDITORIAL Paul Gatling ? pgatling@

NORTHWEST ARKANSAS EDITOR Kim Souza ? ksouza@

SENIOR ANALYST Jennifer Joyner ? jjoyner@

NORTHWEST ARKANSAS REPORTER Jeff Della Rosa ? jdellarosa@

NORTHWEST ARKANSAS REPORTER Aric Mitchell ? amitchell@

FORT SMITH METRO REPORTER Chandler Hrack ? chrack@

EDITORIAL ASSISTANT

SALES & MARKETING Jami Dugger ? jhilton@

SENIOR BRAND STRATEGIST Tom Ginn ? tginn@

BRAND STRATEGIST

DESIGN Chloe Ford ? cford@

ART DIRECTOR

ADMINISTRATION Beth Templeton ? btempleton@

HUMAN RESOURCES & ACCOUNTING MANAGER Daelene Brown ? dbrown@

BUSINESS MANAGER



NWABJ

@NWABJ

669,487

Enplanements (outbound passengers) last year at the Northwest Arkansas Regional Airport in Highfill, an all-time high since the airport's first full year of traffic in 1999.

4

FEBRUARY 20, 2017

VOL. 20, Number 25 February 20, 2017 Northwest Arkansas Business Journal (USPS Number 017-673) is published biweekly by Natural State Media. In-state subscriptions are $49.95 for one year, $84.95 for two years, or $119.95 for three years; out-of-state subscriptions are $69.95 for one year, $104.95 for two years, or $139.95 for three years. Subscriptions can be ordered by calling 479-725-0394. Periodical Postage paid at Springdale, AR. POSTMASTER send PS Form 3579 to Northwest Arkansas Business Journal, 2790 S. Thompson St., Suite 101, Springdale, AR 72764. The contents of the Northwest Arkansas Business Journal are copyrighted, and material contained herein may not be copied or reproduced in any manner without permission of the publisher.

NORTHWEST ARKANSAS BUSINESS JOURNAL

INDUSTRY REPORT

News briefs from Northwest Arkansas

MEDIA & MARKETING

November Ratings: KFSM Wins in All Four Time Slots

Local CBS affiliate KFSM-TV, Channel 5, of Fort Smith has the mostwatched news broadcast in all four time slots, according to the most recent data available from Nielsen Media Research (see list on Page 9).

The numbers show household ratings from the month of November for 11 counties that make up the Designated Market Area of Fort Smith-Fayetteville-Springdale-Rogers.

The Arkansas counties are Benton, Washington, Madison, Sebastian, Crawford, Franklin, Johnson, Logan and Scott. Oklahoma counties in the market are Sequoyah and Le Flore.

A rating is a percentage point of all television households. For example, an 11.8 rating means a station is reaching 11.8% of all households.

The highest rating in the market was in the 6 p.m. news slot, where KFSM registered a 14.3 rating. ABC affiliate KHBS/KHOG, Channels 40/29, was second at 5.3 and NBC affiliate KNWA-TV was third at 2.6.

KFSM is owned by Tribune Co. KHBS/KHOG is owned by Hearst Television Inc. KNWA is owned by Nexstar Broadcasting Inc. of Irving, Texas.

Nielsen conducts ratings research four times each year -- May, July, November and February.

-- Paul Gatling

Market Income Important When Determining Ad Buys

As the population has grown in the 11-county Designated Market Area, so has household income. Population growth has led to the rise in the mar-

ket's Nielsen ranking, which television advertisers use when determining whether to run ads, but also important is the market's income level.

Since 1969, average median household income has risen 157% to $39,599 in the market, from $15,380, according to data from the U.S. Census Bureau. Benton County, which has the highest income level in the market and has been in this position since 1979, has seen income increase 116% to $56,239 since 1989. In 1969, Sebastian County had the highest income level at $20,482. But since 1999, the county has experienced the lowest rise in the market, with income increasing 14% to $38,575, from $33,776. In neighboring Scott County, which had the largest increase, median income rose 41% to $37,321, from $26,422 in 1999.

Another component of ad sales revolves around which station receives the best ratings, meaning they are the most watched. "You're going to get more for your ad revenue because you're number one," said Larry Foley, chairman of the journalism department at the University of Arkansas.

When determining why people watch a station, "a lot of it is just viewing habits," Foley said. And habits have changed, leading stations to look at ways "to position ourselves differently." Stations are trying to build their brand by expanding their coverage using digital media, such as offering live news segments on social media. "It has a lot to do with building up brand loyalty." But it will be important for educators to teach responsible journalism for those who report using social media, especially in a day of "fake news accusations and alternative facts."

-- Jeff Della Rosa

Income growth

Median household income in Nielsen's 11-county Designated Market Area.

COUNTY Benton Crawford Franklin Johnson Le Flore (Okla.) Logan Madison Scott Sebastian Sequoyah (Okla.) Washington Average income

2015* $56,239 $41,268 $39,285 $34,139 $36,490 $35,325 $37,691 $37,321 $38,575 $35,736 $43,524 $39,599

2009* $50,377 $38,942 $30,991 $30,953 $35,963 $35,716 $36,667 $33,969 $39,131 $33,424 $43,317 $37,223

1999 $40,268 $32,913 $30,580 $27,853 $26,972 $28,567 $28,501 $26,422 $33,776 $27,276 $34,458 $30,690

1989 $26,021 $21,574 $18,408 $18,225 $18,832 $18,992 $18,392 $16,470 $24,037 $18,441 $23,124 $20,229

1979 $23,342 $21,670 $19,212 $17,698 $18,072 $16,795 $17,043 $15,264 $23,061 $18,652 $21,449 $19,296

1969 $17,999 $16,564 $14,820 $13,096 $13,001 $13,690 $11,818 $13,423 $20,482 $15,176 $19,113 $15,380

% CHANGE 212% 149% 165% 161% 181% 158% 219% 178% 88% 135% 128% 157%

STATE Arkansas Oklahoma U.S.

2015* $41,371 $46,879 $53,889

Note: *Estimated Source: U.S. Census Bureau

2009* $37,823 $41,664 $50,221

1999 $27,445 $30,600 $42,000

1989 $21,147 $23,577 $30,056

1979 $20,467 $24,716 $28,220

1969 $16,856 $20,759 $26,707

% CHANGE 145% 126% 102%

NORTHWEST ARKANSAS BUSINESS JOURNAL

LEGAL

Retired Justice Paul Danielson Joins Son's Law Office

Paul Danielson, who retired last year after serving 10 years on the Arkansas Supreme Court, has joined the Danielson Law Firm. The law office has locations in Fayetteville and Booneville and Paul Danielson is owned by Danielson's son, Erik Danielson.

Danielson, 70, won a contested race in 2006 to complete the unfinished term of associate justice Jim Hannah, who was elected chief justice, then was re-elected in 2008 to serve a full eight-year term. He cited a state law as his reason not to run again for re-election, and his term ended Dec. 31, 2016.

"Were it not for the state law prohibiting me from seeking re-election without forfeiting my retirement benefits, I would continue to seek re-election as long as the good people of this state would have me," he said in May 2016.

Danielson is working from the firm's Booneville office. A Florida State University graduate, he also graduated from the University of Arkansas School of Law in Fayetteville. Before joining the state's high court, he was a circuit judge in Yell, Logan, Conway and Scott counties from 1995 to 2006.

Danielson's wife (Elizabeth "Betsy" Danielson) and brother (David Danielson) also work for the Danielson firm, which has six attorneys.

-- Paul Gatling

EDUCATION

UA Continues to Boost Research Spending

The University of Arkansas raised its research expenditures by 41% during the past five years, according to a report from the Arkansas Department of Higher Education.

In the 2011-12 school year, research comprised 4.9% of overall expenditures at the university. Now, in 2016-17, it's 6.9%.

The rise in spending came during a time when many spending categories were cut. For example, operations and maintenance expenses were down 27.6%, public service was down 21.3% and institutional support was down 14.5%, according to the ADHE.

Amy Schlesing, director of strategic communications at the UA, said the numbers seem to reflect an ongoing rise in federal grant money for research, although they did not match the figures the

UA had on file. Last year, 2015-16, the school received $102 million in research funding, compared to $80 million the previous year, according to the UA's annual financial report.

That brought research spending up to $145 million in 2015-16, up from about $123 million in 2011-12. That includes about $5 million from the American Recovery and Reinvestment Act, or the economic stimulus bill of 2009.

In fact, university research spending has increased 150% during the past decade, according to its report.

In 2015-16, for example, the U.S. Department of Energy donated $12.2 million for the UA to establish a cybersecurity center for the nation's power grid, and the UA conducted National Science Foundation-funded research in the fields of nanotechnology, renewable energy, surface engineering, power electronics and data privacy.

The U.S. Department of Education awarded $10 million to Arkansas PROMISE, designed to improve education and employment opportunities for teenagers with disabilities.

UA programs also received grant money from the U.S. Department of Agriculture, National Institutes of Health and NASA.

This school year, $1,007 of full-time students' $14,587 annual tuition will go to research, according to the ADHE.

-- Jennifer Joyner

TRANSPORTATION

Booming E-commerce Business Drives Growth for On Time Logistics

A Springdale-based logistics and warehouse provider opened a Tulsa office and nearly doubled its workforce in 2016. On Time Logistics has provided services to Tulsa and Little Rock since 2015, "but the growth and demand in the Tulsa market made it necessary for them to open an office under their own DOT license," Tim Ward, director of sales and marketing, said in a news release. Also in 2016, On Time Logistics developed "two major relationships" contributing to its growth and is "now one of the only last mile delivery providers in Northwest Arkansas for both Amazon. com and ."

As a result of the contracts, the company doubled its workforce to 15 drivers and 10 independent contractors. "While the expansion has been profitable, it's also challenged the logistics provider to change how it does business," according to the release. The company is "now truly a 24-hour service provider with deliveries coming at various hours throughout the day and night." The company's

Continued on Page 6

FEBRUARY 20, 2017

5

INDUSTRY REPORT

COURTESY NORTHWEST ARKANSAS REGIONAL AIRPORT

Continued from Page 5

recent growth can "easily be attributed to the drastic rise in e-commerce."

"The retail market is moving to an online model, and it's really bolstered our business," Ward said. "We're seeing a real paradigm shift."

The logistics company opened the Tulsa office in September and offers warehousing and final mile delivery services. The company continues to offer courier and warehousing services at its Springdale location. The plan in Tulsa is to expand into courier services "in the near future," Ward said. From the Tulsa office, the company can also serve Oklahoma City. "This fills a void that existed in the market for white glove and last mile deliveries. We're meeting a big need."

On Time Logistics was established in 2007 by Steve Jones and primarily serves Arkansas, Missouri, Oklahoma and Kansas.

-- NWABJ editors

XNA Growth Rate Stays On Upward Trajectory

Traffic out of Arkansas' three largest commercial airports was up in 2016, with the largest increase seen in Northwest Arkansas.

Enplanements -- or outbound passengers -- at Northwest Arkansas Regional Airport (XNA) in Highfill, the second-largest airport in the state, totaled a record 669,487 last year, up 3.39% from the previous record of 647,530 enplanements in 2015. XNA's first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

December enplanements at XNA totaled 55,339, up 14.1% from 48,461 in December 2015. 2017 is also off to a strong start, with the airport reporting 46,287 enplanements in January, a 7.1% increase from January 2015 totals.

Despite staying below the 1 million mark for the second consecutive year, enplanements at the Bill and Hillary Clinton National Airport in Little Rock were up 0.42% to 996,897 last year. That's compared to 992,712 enplanements in 2015. December enplanements were 81,698, down 0.23% compared to December 2015. The past two years are the first two years since 1991 that enplanements at the state's largest airport have been below 1 million.

Fort Smith Regional Airport enplanements were 87,488 in 2016, up only marginally compared to 86,704 enplanements in 2015. December enplanements totaled 7,216, up 14.2% compared to December 2015. Fort Smith's 2015 enplanement totals were down 7.1% compared to 2014. The 2014 traffic was 92,869, the first time the airport had topped the 90,000 mark since 2007.

Fort Smith's airport numbers are also off to a strong start in 2017, with

6

FEBRUARY 20, 2017

Northwest Arkansas Regional Airport in Highfill had a record 669,487 enplanements in 2016.

6,391 enplanements reported in January. That's up from 5,500 enplanements in January 2016, an increase of 16.2%.

-- Paul Gatling

REAL ESTATE

Cash Deals Dropped to Historic Lows in 2016

Cash purchases as a percentage of house and condominium sales in Northwest Arkansas dropped to the lowest level in recorded history, according to a real estate research firm.

California-based Attom Data Solutions, which tracks national housing and foreclosure data, said the percentage of all-cash sales in the Fayetteville-Springdale-Rogers metropolitan statistical area (MSA) slid to 26.2% last year. The lowest percentage of cash sales in one year in the local MSA had never been below 30%, according to a company spokeswoman. Attom's historical data goes back to 2004.

All-Cash Sales

Percentages of all-cash home and condominium sales.

FAY-SDALE-ROGERS,

YEAR

ARKANSAS

AR-MO MSA

2004.................28.0%..................................30.9%

2005.................30.3%.................................. 35.1%

2006.................29.0%.................................. 32.1%

2007.................30.9%...................................37.0%

2008.................33.5%..................................38.0%

2009.................35.9%..................................43.0%

2010..................36.5%.................................. 48.4%

2011..................35.6%.................................. 41.4%

2012..................32.8%.................................. 41.6%

2013..................34.6%..................................36.5%

2014..................35.2%.................................. 33.6%

2015..................32.8%..................................30.2%

2016..................30.3%.................................. 26.2%

Note: All-cash sales are those where no loan is recorded at the time of sale, and where Attom has coverage of loan data. Source: Attom Data Solutions

That percentage represents a significant decrease from a peak year of 48.4% in 2010 in Northwest Arkansas. Daren Blomquist, senior vice president at Attom, said the percentage of all-cash buyers has been in decline as the real estate market recovers and bargain-priced property continues to dwindle.

All-cash sales are those where no loan is recorded at the time of sale, and where Attom has coverage of loan data.

"Typically an above-normal [and normal would be about 25%] share of cash sales is a sign of a distressed market so it's not usually good news from a macro-market perspective," Blomquist said. "Cash buyers typically come in to take advantage of buying low during a market downturn. The good news is that cash buyers act as a floor to falling home prices, so often an influx of cash buyers would indicate that the market has bottomed out and at least will not be falling much further."

Arkansas' percentage of all-cash purchases last year was 30.3%, a nine-year low. Nationwide, home sales to all-cash buyers represented 28.3% of all home sales in 2016, down from 31.5% in 2015 to the lowest level since 2007, Attom said.

Among 196 metropolitan statistical areas with at least 200,000 people and sufficient data, those with the highest share of all-cash sales were Binghamton, N.Y. (69.4%); Buffalo, N.Y. (63.6%); Syracuse, N.Y. (58.4%); Macon, Ga. (52.5%); and Montgomery, Ala. (52.5%).

-- Paul Gatling

Homebuilders: Area Housing Market Continues Upward Trajectory

The level of economic and housing activity in Northwest Arkansas is at its healthiest level in more than a decade, according to a new report from the National Association of Home Builders.

The NAHB's Leading Markets Index (LMI) score moved up to 1.14 in the fourth quarter last year, meaning that

based on current permit, price and employment data, the average in the Fayetteville-Springdale-Rogers MSA is running 14% better than its last normal market level. It's the highest LMI for the region since August 2007. After dipping to 0.76 in July 2011, the area's LMI climbed above 1.00 in September 2015 and has been gradually improving.

The LMI examines metro areas to identify those approaching and exceeding their previous normal levels of economic and housing activity. For single-family permits and home prices, 2000-2003 is used as the last normal period. For employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market. An index value above one indicates a market has advanced beyond its previous normal level of economic activity.

Nationally, the index's nationwide score inched up to .99. The LMI shows that markets in 174 of the approximately 340 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2016. This represents a year-over-year net gain of 60 markets. Moreover, 86% of markets have shown an improvement since the fourth quarter of 2015.

Metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For permits and employment, both the 12-month average and the annual average during the last period of normal growth are also adjusted for the underlying population count.

Jonesboro tops the list of metros in Arkansas with a score of 1.25. Others are Fort Smith (1.08), Little Rock-North Little Rock-Conway (0.95), Hot Springs (0.84) and Pine Bluff (0.76).

Baton Rouge, La., tops the list of U.S. metros on the LMI, with a score of 1.73. w

-- Paul Gatling

NORTHWEST ARKANSAS BUSINESS JOURNAL

FOCUS Media & Marketing

TV

Continued from Page 1

NBC affiliate KNWA-TV, Channel 51, and ABC affiliate KHBS/KHOG-TV, Channels 40/29, have moved their main anchors from the Fort Smith area to the region and added news shows, increasing demand for producers to develop them.

"We cannot graduate news producers quick enough because the stations are gobbling them up," Foley said.

Now, Fort Smith-based CBS affiliate KFSM-TV, Channel 5, is poised to grow in Northwest Arkansas.

"That's a real paradigm shift," Foley said.

In 2014, KFSM was one of 19 U.S. television stations acquired by Chicago-based media titan Tribune Co. The following year, Van Comer, KFSM's president and general manager, acknowledged that the station and its parent company were discussing a plan to "increase the size of our operation" in Northwest Arkansas. Comer explained that KFSM has outgrown its existing facilities in the market and "scoped out several sites that will work" in Northwest Arkansas in which to expand. It has been in its existing Fayetteville studio inside the Northwest Arkansas Mall since 1992. In Fort Smith, KFSM is planning to move from its downtown location -- the former Carnegie Library -- to a "more modern facility" in the city. The station has been in its downtown location since 1969.

In Northwest Arkansas, Benton and Washington counties have experienced explosive growth over the past few decades while the population has increased more slowly in the Fort Smith area, and was even estimated to decline in several nearby counties.

Broadcast media companies are responding to the growing population of the two northernmost counties in the 11-county Northwest Arkansas/Fort Smith Designated Market Area (DMA), and are steadily moving more resources into Northwest Arkansas while maintaining existing viewership. As TV stations work to make smooth transitions in the growing market, their sales and news segments have approached the Northwest Arkansas and Fort Smith regions in similar ways.

Explosive Growth

Between 1960 and 2015, the DMA has experienced a 200% increase in population. In that period, Benton County saw the largest increase in the market with a 588% rise to 249,672 people in 2015, from 36,272 in 1960. The population in Washington County, with the second highest increase, rose 304% to 225,477, from 55,797. Sebastian County, which includes Fort Smith, had 66,685 people in 1960 and 79,237 in 1970, but by 1980 Washington County had more people than Sebastian County. Since 1960, the county's population has risen 92% to 127,780, and was

NORTHWEST ARKANSAS BUSINESS JOURNAL

Population growth

Nielsen's 11-county Designated Market Area.

COUNTY Benton Crawford Franklin Johnson Le Flore (Okla.) Logan Madison Scott Sebastian Sequoyah (Okla.) Washington

1960 36,272 21,318 10,213 12,421 29,106 15,957 9,068 7,297 66,685 18,001 55,797

1970 50,476 25,677 11,301 13,630 32,137 16,789 9,453 8,207 79,237 23,370 77,370

1980 78,115 36,892 14,705 17,423 40,698 20,144 11,373 9,685 95,172 30,749 100,494

1990 97,499 42,493 14,897 18,221 43,270 20,557 11,618 10,205 99,590 33,828 113,409

2000 153,406 53,247 17,771 22,781 48,109 22,486 14,243 10,996 115,071 38,972 157,715

2010 221,339 61,948 18,125 25,540 50,384 22,353 15,717 11,233 125,744 42,391 203,065

2015* 249,672 61,703 17,702 26,141 49,605 21,714 15,767 10,513 127,780 41,153 225,477

% CHANGE 588% 189% 73% 110% 70% 36% 74% 44% 92% 129% 304%

Total

282,135 347,647 455,450 505,587 654,797 797,839 847,227 200%

STATE** Arkansas Oklahoma U.S.

1960 1.79 2.33 179.32

1970 1.92 2.56 203.21

1980 2.29 3.03 226.55

Note: *Estimated. **State figures in millions. Source: U.S. Census Bureau

1990 2.35 3.15 248.71

2000 2.67 3.45 281.42

2010 2.92 3.75 308.75

2015* 2.98 3.92 320.09

% CHANGE 67% 69% 78%

the sixth fastest growing county in the market in that period.

According to Nielsen, the DMA includes the following counties: Benton, Crawford, Franklin, Johnson, Logan, Madison, Scott, Sebastian and Washington, and two in Oklahoma, Le Flore and Sequoyah. With 304,670 TV homes, the market is ranked 99th out of 210 markets across the nation, between the Tri-Cities of Tennessee-Virginia (98) and Greenville-New Bern-Washington, N.C. (100). The rank is based on the number of households with TVs. The market moved into the top 100 in 2016, when it had 296,160 TV homes.

The change in the market rank is tied to the population shift, said Ron Warren, associate professor and undergraduate director in the UA's communication department. And the growth in the population can be attributed to growth of the major employers in the area. The rise in the ranking makes the market more attractive for advertisers.

"People are moving here because of jobs," Warren said of Northwest Arkansas' growth.

Keeping it Local

When it comes to how KFSM approaches sales in Northwest Arkansas and Fort Smith, "the similarities far outweigh any differences," Comer said. "Most of our customers are seeking to gain market share across the entire region which is different than just 10 years ago when the market was more divided and less cohesive."

As far as news coverage, "we have two offices that staff journalists in both met-

ros. I'd say the major difference is that the southern metro we refer to as the River Valley accepts Fort Smith as the hub of activity, and that makes it more reasonable to cover. Northwest Arkansas is spread between several thriving cities, and from that perspective the NWA area requires more activity on a daily basis; plus, it represents a majority of the market's population."

News coverage between Northwest Arkansas and Fort Smith "really is no different," said Shawn Oswald, president and general manager for 40/29. The station covers the news from the perspective of covering the entire market.

"It's our responsibility to cover the entire market, and that is what we do," Oswald said.

Advertisers have some flexibility when it comes to reaching out to viewers in both regions of the market. With the ability to split the signal between the two regions, 40/29 advertisers who only want their ads to run in Fort Smith, can do so.

The station, which is owned by Hearst Television, was established as Channel 40 in 1971 in Fort Smith, and in 1977, as Channel 29 in Fayetteville. On Jan. 2, the company launched a new channel, MeTV Arkansas, showing popular shows from the 1970s and '80s. It also owns the Arkansas CW, which recently started a morning news show.

KNWA and FOX affiliate KFTA-TV, both owned by Nexstar Broadcasting of Irving, Texas, also cover the market in similar ways. In a statement, general manager Lisa Kelsey said "we approach clients in our DMA the same way because our goal is to do what is best for them. We

operate the same way in the news department. We cover the stories that matter most to our viewers and their families. Looking toward the future, we are excited to see continued growth in our area and the opportunities it presents for KNWA/KFTA's sales and news departments."

While KNWA focuses on Northwest Arkansas and KFTA also covers the Fort Smith metro, if a story "will greatly impact our viewers, it's our duty to cover it on KNWA as well," Kelsey said. The station, formerly NBC affiliate KPOM/ KFAA-TV, 24/51, changed its call letters in August 2004 after moving its journalists from its Fort Smith office to Fayetteville. The station was established in Fort Smith in 1978, and in Northwest Arkansas in 1989.

If KFSM moves its studio and management offices to Northwest Arkansas, it would be the second of the two major TV stations in the DMA to do so and leave the Fort Smith area without a regional television headquarters. In September 2007, 40/29 moved its studio and sales and managements offices to Rogers. Part of the move to Rogers included moving some staff in Fayetteville to Rogers.

When asked about growing the station without alienating existing viewers, Comer said "at the end of the day, people want to see local news and weather that impacts them. Our team is focused on telling stories that impact all our viewers across the entire region."

When asked if KFSM has expanded quickly enough into Northwest Arkansas, Comer pointed to the TV station's ratings from Nielsen, a global information and measurement company, showing KFSM with at least a 14% market share in the 5 p.m. and 6 p.m. news hours.

"KFSM continues to hold a solid lead in all local newscasts, and from sign-on to sign-off KFSM is the dominant TV station winning both household ratings and adults 18+ ratings," Comer said.

KFSM was established in 1953 with offices in Fort Smith and opened the first TV bureau in Fayetteville in 1972, Comer said. KFSM's outlook is to "continue to add quality journalists and staff because we have evolved past KFSM to now have two TV channels, KFSM and our sister station, KXNW." Along with its website, the company also offers mobile apps for news and weather.

"Our plan for growth is to continue pushing every day to offer the best coverage of local news on whatever device you have available," Comer said. "Fortunately, this is a growth market, and as long as we do our jobs well, growth is a natural byproduct. ... Key to our growth is not neglecting anyone. I don't think you need to dismiss someone to cater to someone else. This region is stronger when we accept that it is one market." w

FEBRUARY 20, 2017

7

FOCUS Media & Marketing

Local team produces `Cook with Brooks' on AETN

By Jennifer Joyner

has built a Northwest Arkansas audi- tom vehicle manufacturer for NA- for season one came out of the group's

ence through the course of several re- SCAR, and he's worked as an actor on own pockets, shooting was limited to

Steven Brooks has taken his TV chef gional TV programs and appearances, CW's "One Tree Hill" and the Univer- Northwest Arkansas. However, now

role statewide with a weekly show on starting with a four-year stint on Jones sal Pictures film, "Leatherheads." He that the show has several underwriters,

the Arkansas Educational Television TV, which led to regular segments on serves as executive producer and direc- the plan is to take it statewide, he said.

Network (AETN).

Fox News Edge and local NBC affiliate tor for "Cook with Brooks" and handles

Chef Brooks and the Bod High Produc-

"Cook with Brooks" debuted Jan. 7 KNWA. The KNWA segment led to the the technical side of Bod High, while tions team signed a one-year contract with

and airs Saturdays at 5 p.m. It is differ- show "Cooking Today," which aired 291 Hammarstrom, with her experience in AETN. After the year is up, Duckworth

ent than Brooks' previous ventures, episodes from 2014 to 2015.

graphic design and shopper marketing, said they just plan to see where the show

shown primarily in Northwest Arkan-

At "Cooking Today," he worked with handles the creative. For now, their goes, whether that means subsequent sea-

sas, because it focuses on local farms as producer/director Jeremy Duckworth, company is a two-person operation run sons on AETN or possible national expo-

well as cooking. "The mission of the and the duo had aspirations to own the from their downtown Rogers home.

sure through a pickup from PBS.

show is to tell the food story in Arkansas," Chef Brooks said, adding that he

show. They wanted fewer episodes with more in-depth storytelling and an ex-

A New Audience

Hammarstrom said Chef Brooks' likeability, cooking talent and his years

wants to "show off" the players in all panded reach. Bolstered by a 2014 Out-

"Cook with Brooks" has broadened of experience in TV played a major role

levels of that story, "from the seed to standing Production of the Year award Chef Brooks' audience significantly. in landing the show on AETN, but it

fork and everything in between."

from the Arkansas Broadcasters Asso- AETN is Arkansas' only statewide TV also helped that the team was already

Chef Brooks previously owned Soul ciation and good ratings, they shot a pi- network, reaching 95% of the state and assembled and certain marketing ele-

restaurant in Fayetteville and has lot for "Cook with Brooks" in 2015. The its surrounding area, said public rela- ments, including a website, were al-

served as executive chef for Blessings viewership surprised the network, tions manager Tiffany Head.

ready in place for "Cook with Brooks,"

Golf Club and later Springdale Country Duckworth said. "They thought we

Each year, AETN broadcasts more when it was pitched to the channel.

Club. In 2013, he became corporate ex- were going to get slash marks," mean- than 110 hours of new, original produc-

And the team believes its message

ecutive chef for the Van Buren-based ing no ratings to speak of.

tions, she said. For all hours broadcast resonated with programming execu-

food distribution company Tankersley

Michelle Hammarstrom, Duck- on AETN in fiscal year 2016, 283 hours, tives. "I think they saw what we were

Foodservice. His work requires travel worth's wife, quit her full-time job at or 3%, were local programming. The rest trying to do," Duckworth said.

throughout Arkansas and Oklahoma, Catapult Marketing in early 2016 to comes from a variety of sources, includ-

Tony Brooks, interim director of

which allows Chef Brooks to become serve as creative director and marketer ing PBS, National Educational Telecom- AETN, said to be picked up a show needs

acquainted with farmers, chefs and on the project, and the team began film- munications Association, American to fit the organization's mission and crite-

foodies across the state for the show.

ing the first season that year.

Public Television and BBC.

ria. "If it's a program that educates, in-

Chef Brooks said he's "just a chef"

Duckworth and Hammarstrom are

"Cook with Brooks" will air through- spires and tells the story of Arkansas,

and "not a TV person," but his TV ca- co-founders of Bod High Productions. out 2017, Chef Brooks said. There are 13 that's what we're looking for," he said.

reer dates back to the 1990s in his His varied career history includes episodes planned, and most have al-

Tony Brooks said he appreciates that

hometown of Birmingham, Ala., and he stints as an auto racer and later a cus- ready been filmed. Because the budget the "Cook with Brooks" show features

Arkansas-grown products and

that Chef Brooks uses them in a

creative way. "People can learn

to eat better, learn how to use lo-

cally grown products," he said.

The content of the show aside,

Chef Brooks believes his tenaci-

ty might also have played a part

in getting the show on air.

After the team sent footage

and didn't promptly hear back.

Chef Brooks visited the AETN

office in Conway while travel-

ing with work and gave an im-

promptu pitch at a production

meeting.

"I just don't ever take `no' for

an answer. I don't take not be-

ing replied to for an answer. I'm

going to go knock on your door,"

Chef Brooks said.

"Cook with Brooks" is in a

time slot after a rotation of

"America's Test Kitchen" and

"Cooks Country," the most-popu-

lar and most-watched cooking

programs with over 2 million

weekly viewers, according to the

show's site. And on AETN Chef

COURTESY

Brooks has the potential to reach

a few of the network's more than

"Cook with Brooks"executive producer and host Chef Steven Brooks, left, executive producer and director Jeremy Duckworth and marketer and creative director Michelle Hammarstrom on set at 460,000 viewers per week. "It's a

Bansley's Berkshire Ridge Farm in Harrison.

dream come true," he said. w

8

FEBRUARY 20, 2017

NORTHWEST ARKANSAS BUSINESS JOURNAL

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