MORE THAN HALF OF ADULTS CONSUMING OTT CONTENT

The Daily News of TV Sales

Thursday, April 11, 2019

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MORE THAN HALF OF ADULTS CONSUMING OTT CONTENT

MILLENNIALS A CHALLENGE FOR LEGACY MEDIA New data released yesterday confirms that more than half

of all American adults are consuming over-the-top (OTT) content like movies, complete seasons of popular series, original content and programs like documentaries, concerts and stand-up comedy specials from services like Netlfix, Amazon Prime, Hulu and now Apple, either to supplement or completely replace legacy cable and broadcast. But TVNewsCheck reports that as the streaming wars heat up and the mound of cut cable cords continues to grow, a lot of people are asking: "How many streaming services are we going to need to get the content we want?" And, more generally, how many services will the market bear?

A newly released survey of more than 2,000 verified adult users of OTT services, conducted by the Harris Poll and adtech platform OpenX, shines a light on those and other questions.

The 2019 Consumer OTT Report finds that 61 percent of Americans own a Smart TV, and 52 percent use OTT services. Age is also a key factor: OTT usage is 65 percent for viewers age 18-34. The average OTT customer, the survey found, owns three devices they can use to watch OTT content, and they subscribe to three different OTT services. And those viewers spend more time watching OTT content than they do driving a car or talking to friends and family.

The poll also contains grim news for the future of cable, satellite and broadcast, especially as the Millennial generation supplants aging baby boomers as the primary consumer target. Millennials who subscribe to at least one OTT service watch more than twice as much OTT content as they do live TV. The top content that people want is movies, then scripted TV shows. Live news and sports ? thought to be keeping broadcast and cable in the game ? rank third and fourth across all cohorts. The survey also found that less than 40 percent of Millennial OTT users plan to keep their cable package, and nearly twothirds of cord cutters are more like "cord burners" in that they say it has noticeably improved their life, and there's nothing a cable company could do to lure them back to a bundle. "We are clearly at a tipping point where OTT is mainstream," says Dallas Lawrence, chief communications and brand officer for OpenX. "These are not passive viewers dipping their toes in. These viewers want lots of content ? 2.5 hours per day on average ? on multiple services."

The OpenX survey also sheds light on the question of market saturation. With new streaming services seemingly coming on line every week, it's reasonable to wonder how wide even dedicated viewers will stretch their wallets. According to the survey, the answer is "up to $100 per month for about 15 channels/outlets." "Consumers are overwhelmed," says Lawrence. "They want simplicity. Most of all, they want to make their own skinny bundles, picking and choosing across different services through a single interface."

ADVERTISER NEWS Macy's is launching 36 STORY in-store concept shops

inside its full-line stores, reports. The shops, which will measure 1,400-square-feet and carry more than 400 SKUs, will continually reset and feature products from both small businesses and major brands, such as Crayola, Levi's Kids and MAC Cosmetics... Steve Kessel, Amazon's senior vice president of physical stores, told employees in an internal meeting that the company is

making plans for its Go cashier-less convenience stores to accept cash in the future, CNBC reports. The company, Kessel said, was making the move to respond to criticisms of "discrimination and elitism" at the stores... In its annual report for 2018, grocer Publix reported revenues of $36.1 billion -- a 4.4 percent increase from 2017. According to the Miami Herald, those sales put it about on par with Oregon-based global shoe giant Nike, which reported $36.4 billion in sales at the end of its most recent fiscal year, which ended in June. Publix continues to boast impressive growth even into its eighth decade. The 2018 revenues translated into net earnings of $2.4 billion, up 3.9 percent from 2017. (Nike made $1.9 billion). Publix is listed at No. 88 on the Fortune 100 list of largest U.S. companies... Plated, the meal-kit company owned by Albertsons Cos., has laid off about 10 percent of its New York City staff as it reorganizes its corporate office to cut costs, Bloomberg reports. The job cuts, which impact about 25 workers, will allow Plated to reduce expenses and better utilize the larger company's operations structure already in place... Patagonia, which started selling its own Long Root Ale in 2016, has filed a lawsuit against Anheuser-Busch InBev over its new beer brand named Patagonia Brewing Company. The suit contends AB deliberately sought "to take advantage of the tremendous goodwill that Patagonia, Inc. and Patagonia Provisions, Inc. have built over the last 40 years." AB InBev has also tied the beer to environmental conservation ? a cause Patagonia has loudly supported for decades ? by claiming that it will plant a tree for every case of beer it sold, Fast Company reports... A multi-state, voluntary recall has been issued for prepacked, one-pound Meijer ground beef that may contain hard pieces of plastic, the Indianapolis Star reports. The recall includes all products produced and prepackaged by JBS Plainwell under the Meijer brand label with a sell-by date of April 10, the grocery store chain and JBS said in a joint statement. The ground beef was sold between March 22 and April 9 in all Meijer stores in Indiana, Michigan, Illinois, Ohio, Kentucky and Wisconsin... Food Lion is updating its stores in the Charlottesville/Harrisonburg, Virginia area, Chain Store Age reports. The grocery retailer is investing $40 million to remodel 23 stores in 14 towns and cities throughout Charlottesville, and Harrisonburg, Va., communities. Once the renovations are complete, Food Lion will have remodeled 80 percent of its network of more than 1,000 stores across its 10-state operating area.

NETWORK NEWS

AVAILS

Gayle King of CBS This Morning will host the CBS News KITV, an SJL, Lilly Broadcasting-owned ABC affiliate

special Meghan and Harry Plus One, marking the one-year in Honolulu, seeks a dynamic Director of Sales. We

anniversary of the royal marriage and the birth of their first are looking for a sales leader with a proven track record

child, who will be the first British-American child to be in line of success to direct the local sales team for KITV, MeTV

for the throne. CBS News' announcement does not indicate among other digital channels and online platforms. The

that King has landed a sit-down with the couple. The sweeps Director of Sales will lead our local Account Executives to

special is set to air Friday, May 17 at 8 PM (ET)... ABC is ready exceed goals through communication and negotiation with

for even more "Summer Fun and Games" and dating drama local clients and agencies; developing new business; and

this year. Along with setting a June 20 series premiere date providing direction, leadership and support to our sales team.

for Reef Break and slotting several other new and returning Interested candidates should email cover letter and resume

series today, the network is expanding

to jhagiwara@. EOE.

its slate of game shows to three nights

The Networks of Mid-Missouri, ABC

a week and making The Bachelor

17 KMIZ, FOX 22 KQFX, MyZouTV and

franchise last all summer long. To that

If a good song is playing,

Me-TV, is looking for a Director of Sales

last point, The Bachelorette returns for

I will keep driving until

to oversee all revenue for its broadcast

Season 15 at 8 PM Monday, May 13 -- a

it's over and then claim I

and digital properties in the Columbia/

week after a reunion special airs in the

didn't hear the siren.

Jefferson City, Mo., market. We need

slot -- and then Season 6 of Bachelor in

a highly motivated individual who is a

Paradise takes over the two-hour block

dynamic leader with a track record of

starting July 29. The latter had been set to launch Wednesday, August 7... Former

Ron White

multimedia sales success to manage the rapidly changing landscape of broadcast

CBS News correspondent Lara Logan

and web revenue generation. APPLY

has found a new home with Sinclair Broadcast Group. ONLINE and be prepared to provide cover letter and resume.

Logan has a 90-day assignment as a special correspondent NPG of Missouri, LLC is an Equal Opportunity Employer.

focusing on the U.S.-Mexico border, and will produce two Estrella TV West Palm Beach, the Hearst-owned Estrella

segments a week for Sinclair's 191 television stations in 89 Affiliate in the beautiful West Palm Beach market, has

markets, starting May 1.

an incredible opportunity for you! Estrella TV West Palm

Beach, sister station to WPBF 25 ABC, is looking for a

WHOLE FOODS EXPANDS DELIVERY, PICKUP

dynamic sales superstar to join our phenomenal sales

Amazon continues adding markets where Prime members team. The ideal candidate will be bilingual, will bring both

can schedule grocery delivery and pickup from Whole Foods Broadcast and Digital sales experience, and will possess the

stores, Chain Store Age reports.

drive and ability to thrive in a fast-paced, highly competitive

Amazon is offering delivery as little as an hour through market. Your creativity, originality and passion for developing

Prime Now from Whole Foods stores in Asheville and new business will be encouraged and rewarded! CLICK

Charlottesville, N.C.; Columbia, S.C.; Lexington, Ky., Little HERE to apply. EOE.

Rock, Ark. Manchester, N.H., Mobile, Ala., Naples, Fla., and KIRO TV, Cox Media Group, Seattle, seeks a Digital Sales

Savannah, Ga.

Specialist to work with the media sales team to grow digital

Prime members in those cities can shop through Prime Now revenue by accompanying the media sales team in the field

for thousands of items including fresh produce, high-quality to conduct customer needs analysis and present client-facing

meat and seafood, everyday staples and other locally- solutions. The Digital Sales Specialist must understand all

sourced items. Select alcohol is also available for delivery to CMG Local Solutions digital product offerings and how to

customers in Asheville and Naples.

leverage them to meet the client's strategic objectives. Digital

The service, launched in four markets in February 2018, is assets include all core products and platforms

now available in 75 U.S. metros.

inclusive of display advertising, streaming media, and native

advertising. CLICK HERE to apply.

BUDGET DEFICIT GREW IN 1H OF FISCAL 2019

The U.S. budget gap widened in the first half of the fiscal See your ad here tomorrow! CLICK HERE for details.

year as spending rose faster than revenue. The government

ran a $691 billion deficit from October through March, the CONSUMER PRICES SEE SOLID RISE IN MARCH

Treasury Department said yesterday, compared with $600 U.S. consumer prices increased by the most in 14 months

billion during the same period a year earlier.

in March, but the underlying inflation trend remained benign

Treasury said spending has driven the 2019 fiscal deficit amid slowing domestic and global economic growth.

increase. Federal outlays rose 5 percent to $2.198 trillion in The Labor Department said its Consumer Price Index

the October-through-March period, while revenues increased rose 0.4 percent, boosted by increases in the costs of food,

1 percent to $1.507 trillion.

gasoline and rents. That was the biggest advance since

More broadly, deficits are projected to climb in the coming January 2018 and followed a 0.2 percent gain in February.

decades as an aging U.S. population fuels higher costs for In the 12 months through March, the CPI increased 1.9

programs such as Social Security and Medicare. The CBO percent. The CPI gained 1.5 percent in February, which was

projects deficits as a share of GDP will average 4.4 percent the smallest rise since September 2016. Economists polled

over the next 10 years, compared with a 2.9 percent average by Reuters had forecast the CPI climbing 0.3 percent in

over the previous 50 years.

March and accelerating 1.8 percent year-on-year.

4/11/2019

The Daily News of TV Sales @

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BREAKING DOWN MOBILE VIDEO AD SPENDING OUTLOOK: SNAPCHAT TO LOSE MONTHLY USERS

This year, U.S. advertisers will spend two-thirds of their Following its unpopular redesign, Snapchat has been

digital budgets on mobile placements. Mobile ad spending struggling to gain users in the U.S. As a result, eMarketer

has taken the majority of digital spending every year since has significantly downgraded its growth outlook for Snapchat

2015, and both search and display spending skew heavily in its latest U.S. social usage forecast.

mobile. But even though it falls under the display umbrella, For the first time, Snapchat will lose monthly users this year,

video is the only digital ad format where more ad dollars are with growth expected to flatten in 2020. In 2019, Snapchat

spent outside mobile channels.

will have 77.5 million monthly users, down 2.8 percent from

In 2019, eMarketer estimates U.S. advertisers will last year. This represents a significantly lower projection

spend $16.41 billion on mobile video advertising (45.6% than eMarketer expected in its Q3 2018 forecast, which

of total digital video ad spend) and $19.59 billion on video anticipated 6.6 percent growth to 90.4 million monthly U.S.

elsewhere.

users this year.

One big exception to the non-mobile

skew of video ad spending is social

My husband got barbecue

THIS AND THAT

video, of which 93 percent will go toward

sauce on my mom's

Yahoo has agreed to pay up to $117.5

mobile placements in 2019. That's largely

favorite white tablecloth.

million to resolve claims stemming from

because the overwhelming majority of

For five whole minutes

data breaches that affected an estimated

Facebook's ad revenues (94% in 2019) come from mobile spending.

I wasn't the biggest disappointment in her life.

200 million users, according to court papers filed this week. If approved, the

The initial shift to a mobile-dominated

new agreement would create a fund for

digital ad market in the U.S. was largely driven by display advertising,

Funny Tweeter

around 200 million people whose data was hacked between 2012 and 2016...

which made up 44.6 percent of digital

Worldwide spending by retailers on

ad spending in 2015. That year, mobile display spending artificial intelligence services will reach $12 billion by 2023,

grew 62.9 percent to $15.71 billion. And 2015 was also the according to a new study by Juniper Research. More than

year mobile commanded more than half of total digital ad 325,000 retailers are expected to adopt AI technology by

dollars. Search ad spending caught up in 2016, when more then. Spending for this year is estimated at $3.6 billion.

than $20 billion was invested in mobile ads, a 45.4 percent

increase year over year.

NAB SHOW: ATTENDANCE REACHES 91,460

In 2019, the $36 billion video ad industry remains the only The National Association of Broadcasters said preliminary

outlier in this respect, and the reason is simple: the rise registration for the NAB Show convention in Las Vegas was

of over-the-top (OTT) TV advertising. eMarketer doesn't 91,460, down slightly from 92,912 in 2018. The April 6-11

break out OTT ad spending from the non-mobile total, but, gathering drew attendees from 160 countries and had more

for example, Hulu is expected to gross nearly $2 billion this than 24,000 registered attendees from outside the U.S.

year in ad revenues.

"Once again, NAB Show is the premier showcase for the

latest advancements that are reshaping the world of media,

SURVEY: CORD CUTTERS STILL OPEN TO ADS

entertainment and technology," NAB EVP of communications

Is Netflix actually training today's generation of cord- Dennis Wharton said in a release. "We thank our exhibitors,

cutters and cord-nevers to tune out video advertising? program partners and speakers for making NAB Show

Perhaps not.

a must-attend event for content creators, producers and

A new survey commissioned by the local media-focused distributors from around the world."

digital ad platform ZypMedia, and conducted by The

Harris Poll, suggests consumers are open to including ad- TUESDAY NIELSEN RATINGS - LIVE + SAME DAY

supported streaming offerings in their media diet.

A majority of cord-cutters (52%) and 47 percent of cord-

shavers say they don't mind watching commercials on their

streaming services. In fact, a majority of those surveyed

(51%) said ads on streaming services are more relevant

than those on traditional broadcast or cable TV.

"The increased capabilities of targeting on OTT supports

a better and more engaged ad viewing experience," Aman

Sareen, cofounder and CEO of ZypMedia, tells Digital

News Daily. "A well-matched message feels more like an

answer than an advertisement."

The survey also found that among consumers who watch

ad-supported streaming services, a significant majority

(62%) prefer local ads to national ads. In addition, millennials

prefer local ads more than consumers over 55.

The study also reaffirmed that streaming services skew

young, with a clear majority of those 18-44 watching video

through free and local streaming services. Consumers 45

and older were significantly less likely to do so.

4/11/2019

The Daily News of TV Sales @

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