Cable Nets: Less Revenue Post-Election

Spots N Dots
The Daily News Of TV Sales
November 1, 2017

CABLE NETS: LESS REVENUE POST-ELECTION

REVENUE FOLLOWS VIEWERSHIP

Cable TV news networks have been the only TV networks to record growth among viewers for the better part of 12 month, according to Mediapost.com.

In the third quarter of this year, Fox News, MSNBC and CNN were ranked first (1.15 million), second (843,000) and fourth place (700,000), respectively, looking at total-day programming viewership.

But things might be changing. Standard Media Index said Fox News had a 17% drop in advertising in Sept. when compared to the same month last year.

Of course, ad revenue gains for both TV stations and networks make sense in major political years. And, rates are likely to increase.

What perhaps might be a mystery is that SMI also notes that CNN and MSNBC had somewhat different results in September 2017 versus Fox. CNN saw a small decrease of 1% in advertising revenue -- while MSNBC added 2% in ad revenue.

SMI says last September, Fox’s Tucker Carlson Tonight got $12,200 a spot; Hannity got $8,500. This compares to an average $31,300 for a :30 during the Sept. 2016 presidential debate.

Fox’s prime-time shows are still ahead of the competition. The average price per spot on MSNBC’s The Rachel Maddow Show and Last Word with Lawrence O’Donnell averaged $4,600 and $3,700 for a :30, respectively.

But big political marketers may spend more on TV news networks in the coming months to take advantage of viewership gains.

COX SELLING NEWSPAPERS IN TWO CITIES

Cox Media Group has announced its plans to sell its Austin American-Statesman and related Texas community newspapers, and the Palm Beach newspapers, including The Palm Beach Post and Palm Beach Daily News.

“After careful consideration, we have made the difficult but strategic decision to put our newspapers in Palm Beach and Austin up for sale,” said CMG President Kim Guthrie.

“We have made the decision that we will be better equipped to operate our newspapers in Atlanta and Ohio, where we have the integrated opportunity with our TV and radio operations. We are deeply grateful to the employees in Austin and Palm Beach for the great work they have done over the years.”

Might be good timing for the seller. A recent Borrell Associates Local Advertiser survey shows one-in-four local advertisers said they plan to cut newspaper budgets, with 6% expected to drop newspaper spending completely.

ADVERTISER NEWS

Just a week ago it appeared to be almost certain that a big merger in the wireless business was likely to happen, but new reports say that Sprint majority owner SoftBank has pulled the plug on a potential deal with T-Mobile. The Wall Street Journal adds that instead of the merger, Sprint will invest in updating and improving its existing network…… Rent-A-Center has started to explore strategic value and alternatives to maximize value for its stockholders, often a euphemism for putting the company up for sale. The announcement came at the same time it announced disappointing third quarter results with total sales down 7.2% and same-store sales down 5.1%...... Ford is teaming with Sam’s Club and TrueCar to offer a pricing deal to Sam’s members in 36 states. TrueCar started a relationship with Sam’s three years ago designed to compete with a similar dealership referral program at Costco, but this is the first time Ford is partnering with Walmart’s warehouse operation. Eligible Sam’s members can get special pricing for their new vehicle as well as up to $2000 in post-sale benefits including repairs and deductible reimbursements……Here’s a hamburger version of Olive Garden’s successful Pasta Pass promotion. Smashburger is offering a Holiday Smash Pass for $54, which will give customers coupons allowing them to buy a burger for $1 each day from 11/15 through 1/9 (excluding Thanksgiving and Christmas). The test is just at the 190 company-owned units, and, unlike Olive Garden’s deal, there is no limit to how many passes the chain will sell……Texas Roadhouse had a good quarterly top line, with same-store sales up 4.5% at company-owned locations and up 4.7% for franchisees. But the bottom line may not be as rosy—pressured by rising labor costs, margin fell 31 basis points to 17.8%, and the company now predicts labor inflation to rise to 7-8% in the upcoming year....…Best Buy will offer free shipping on all online orders with no minimum purchase required through Christmas Day, the third straight year it has offered the service, matching a similar offer made by Target last week...... Coca-Cola finally finished its 21st Century Beverage Partnership Model in which it has executed 60 transactions to refranchise its bottling system. The final closings occurred last weekend with Liberty Coca-Cola Beverages taking over territory in New York, New Jersey and Philadelphia; Reyes Coca-Cola Bottling acquiring more territory in California and Nevada; and Swire Coca-Cola USA takes on additional production facilities for its Mountain states operations… Weaker demand for Under Armour products is hurting the athletic apparel retailer. The company trimmed its profit and revenue expectations for the full year, citing a “difficult backdrop” in North America — its largest market for sales. Total revenue fell 4.5 percent, to $1.41 billion.

NETWORK NEWS

ABC has ordered two additional episodes each of its comedies Black-ish and American Housewife, and two more episodes of its hit drama Grey’s Anatomy. The new order will bring the total episodes for each series to 24 for the season. Grey’s Anatomy is currently in its 14th season on the network and is approaching its 300th episode. It’s ABC’s highest-rated scripted drama in the key adult 18-49 demo, averaging a 2.15 Nielsen Live +Same Day rating, up 3.7% from its average last season. Black-ish is currently averaging a 1.25 demo rating, while American Housewife is posting a 1.41 demo average…… Chantal Thuy (Madam Secretary, Pretty Little Liars) has been cast to play the role of Grace Choi in the CW’s new series Black Lightning. Thuy joins cast members Marvin “Krondon” Jones III and Gammy-winning singer Jill Scott on Black Lightning when it premieres on the CW 2018……Fox has given a script commitment plus penalty to Snow Blind, an hourlong witness protection drama based on the graphic novel by Ollie Masters (DC/ Vertigo’s The Kitchen) and Tyler Jenkins (Grass Kings). The project centers on Sheriff Billy Bowden, who struggles to keep his past life of crimes and his placement in the witness protection program hidden from his friends and family in a small Alaska town. Snow Blind is from Vaun Willmott (Prison Break, Dominion), Boom Studios and 20th Century Fox TV. Also at Fox, Filthy Rich has been given a put pilot commitment. The soapy family drama is from writer-director Tate Taylor (The Help), Imagine TV and 20th Century Fox TV. The project is based on a New Zealand series of the same name. Filthy Rich revolves around a family of a mega-wealthy Southern businessman who finds out there are three previously unknown heirs to his fortune. The family tries to pay them off to go away, but the newly legitimate heirs have very different ideas. Taylor will write, direct and executive produce the project along with John Norris, Brian Glazer, and Francie Calfo……Variety is reporting that ABC is asking as much a $2.6 million for a 30-second spot in the 2018 Academy Awards Ceremony telecast. The big asking price for the commercials may surprise casual observers since the 2017 Oscars telecast was one of the least-viewed installments of the broadcast since 2008. Ratings for the show have declined steadily since an Ellen DeGeneres-hosted ceremony delivered 43.7 million viewers in 2014……The Latin Recording Academy announced the first round of artists scheduled to perform at the 18th Annual Latin Grammy Awards. Some of the artists include J. Balvin, Bad Bunny, Flor De Toloache, Luis Fonsi, Juanes, and 2017 Latin Recording Academy Person of the Year Alejandro Sanz. The ceremony will be broadcast on Univision Thursday, November 16th at 8 PM (ET).

WINNING WITH NFL FANS

Adweek is reporting on a new study from Viant that identifies many characteristics of NFL fans, and finds some major brands such as Amazon, Budweiser, and Ford to be favorites of game viewers. The researcher defines NFL fans as having on average watched at least one NFL game per week during the 2016 regular season and notes that despite all the current problems the league is facing, a recent poll by CBS News found that 58% of all Americans currently cite football as their favorite sport.

Amazon is seen as the top retailer among fans, with 23% of them spending an average of $139 per month with the online seller. Walmart is just behind with shoppers (22%), but takes in an average $164 per month. Target attracts 15% of fans and Costco 10%. The top five car brands among fans are Ford (16%), Chevrolet (15%), Toyota and Dodge, 8% each, and Honda, 7%. Top beer brands are Budweiser (13%), followed by Bud Light, Miller, Coors and Coors Light. And while Domino’s is the top pizza restaurant for fans, fans are 20% more likely to eat at heavy NFL advertiser Papa John’s than are non-fans.

BUSINESS BYTES

CNBC is reporting the department store sector is already “under fire” ahead of the holidays, with analysts dwelling on recent bad news and offering pessimistic projections of the upcoming holiday season after J.C. Penney lowered its sales and profit forecast last week. Citi analyst Paul Lejuez sees “another promotional holiday ahead,” meaning a lot of deals and discounts that will eat into department store profits. “In the current retail environment, we believe department stores are structurally disadvantaged to win,“ he said, “Risks continue to mount.” Another analyst offered an additional negative forecast saying “The sector faces intense secular headwinds as mall traffic wanes and the shift to e-comm(erce) should also continue to weigh on profitability.”

Walmart is closing the pricing gap with Amazon, according to a new study from Profitero reported by This Week In Consumer Electronics. Based on an analysis of more than 52,000 exactly matched in-stock products in 13 categories, Walmart came within 2.9% of matching Amazon’s prices—well down from a 9% gap that existed when a similar study was done three years ago, although consumer electronics continued to be one of the categories with the widest gap. TWICE says Amazon’s lead over Walmart in CE was about 7%, with significantly wider gaps in pricing when compared to others that sell CE merchandise. Walmart subsidiary Jet.com was 9.1% more expensive that Amazon, Bestbuy.com was higher by 12.4%, Target.com was 17.2% higher, Newegg was 22% more expensive and Staples was 39% higher. The gap was also high in appliance pricing with Jet.com higher by 9.2%, Target up by 12%, and Best Buy almost 17% more expensive.

AVAILS

Small privately-held broadcast company seeks a progressive and hands-on News Director who is not afraid of change and is willing to roll up his/her sleeves to get the job done. Our right candidate will be an experienced news manager who likes to be actively involved in all facets of the news operation. News Director experience preferred however experienced executive producers or assistant news directors looking to move into the Director role should apply. Send resume, cover letter and salary requirements in confidence to . EOE.

ABC6 in Providence, Rhode Island is looking for an experienced media sales professional with a minimum of 2 years’ experience. We need an enthusiastic, accountable individual to work with local and regional clients– at the agency and local levels to develop marketing plans utilizing all station products. This position is a great opportunity for someone looking for a move into a top 60 market. Please send resume to: . No phone calls please. WLNE-TV / ABC6 is and equal opportunity employer.

WDIV-TV/ClickOnDetroit the Graham Holdings owned NBC affiliate in Detroit, MI seeks a dynamic, enthusiastic and results oriented Account Executive. The AE must maintain and grow a core account list and develop new station business. The ideal candidate must be able to develop new revenue for our properties through projects and special promotions from broadcast, online, mobile, and cross platform campaigns. Experience with Wide Orbit, and a college degree preferred. To apply, please send resume to Gary Macko VP Sales/General Sales Manager: . EOE.

Edward R Murrow Award Winning Broadcaster WJZY, the FOX O&O in Charlotte, NC is looking for a Traffic Coordinator. This person is responsible for the accuracy of spot placement to maximize inventory, and separation of the daily log. One to two years of TV traffic experience in commercial television station preferred. Knowledge of WideOrbit, Commercial Delivery Systems, and Microsoft Office is helpful. Must be detail oriented and able to handle multiple tasks in a fast-paced environment. CLICK HERE for full details or to apply now. EOE

SNN - Suncoast News Network, located in beautiful Sarasota, FL is looking for an experienced Account Executive. The ideal candidate is a motivated self-starter who enjoys the challenge of developing new business in a competitive environment, as well as being a consultative partner with existing clients. Must have strong organizational, written and presentation skills, be proficient in Word, Excel and PowerPoint. Please send cover letter and resume to Charles Cusimano, Station Manager at . EOE.

WWBT NBC12/Raycom Media seeks a Multimedia Sales Consultant. This commissioned position is partnered with their own Success Manager, Digital Sales Specialist, Research Director and other support personnel so that they can focus almost solely on new business and account retention. Must be a highly motivated self-starter with the ability to manage business independently. Minimum 3 years of media sales experience. Experience in Matrix, Wide Orbit Traffic, Media Sales, and Microsoft Office preferred. CLICK HERE to apply or for more info. EOE M/F/H/V