Spots N Dots
The Daily News Of TV Sales
July 15, 2016
MDI TALLY: TV UPFRONT GAINS $800 MILLION
FIRST GAIN FOR NETWORKS IN THREE YEARS
Although complete returns are not yet in for some of the secondary sellers, Media Dynamics Inc. (MDI) is out with its preliminary tally of the 2016 Upfront. The verdict is that the broadcast networks and cable channels reversed two years of declining Upfront spending on primetime TV, scoring a collective $800 million increase. That’s a 4.5% increase over the previous upfront.
“What we are seeing is partly a reaction to the many issues plaguing digital media, which, until recently was seen as a potential alternative or supplement to linear TV,” said MDI President Ed Papazian, who has tracked the TV Upfront for 30 years. Many advertisers, who had previously touted their desire to reduce their reliance on linear TV, seem to have slowed their shift to digital media, due to concerns like the effect of ad blockers on digital video’s reach, limited quality content available for sponsorships, questions about commercial “visibility,” and generally low usage levels. Whether this continues depends in large part on digital media’s willingness to solve some of these more glaring problems, so the long term implications are unclear, notes Papazian.
This year’s Upfront for the 2016-17 TV season produced sharply higher CPMs—which is particularly noteworthy, given that average commercial minute TV ratings continue to fragment, with more channels and SVOD options competing for viewers. On average, a typical primetime advertiser paid 10% more to reach a broadly targeted viewer; this figure was slightly higher for the broadcast networks, and slightly lower for cable, as tallied by MDI.
The consulting company estimates an average primetime Adult 18-49 CPM of $47 for the broadcast networks in the 2016-17 upfront, compared to $43 for the current season. Cable’s figures are $31 for 2016-17 versus $29 for 2015-16. The total take for broadcast is estimated at $8.75 billion, up from $8.36 billion last year. And cable’s total is put at $9.86 billion, up from $9.45 billion. The combined total is put at $18.61 billion, up from $17.81 billion. The cable network total from the Upfronts moved past broadcast for the 2013-14 season and has remained higher since then—although the cable pie is divided among many more players.
This year’s Upfront total is still estimated to be below the peak of $19.20 billion for the 2013-14 season. That was when cable hit its peak of $10.11 billion before declining for the next two years. The peak for broadcast had been a year earlier at $9.39 billion, before dropping for three years.
ADVERTISER NEWS
We knew big changes would come to the East Coast supermarket business necessitated by the merger of Delhaize and Ahold, and now deals have been announced for the new pair to sell off 86 stores in order to get FederalTradeCommission approval. Weis Markets is buying 38 Food Lion stores in Delaware, Maryland and Virginia, while Supervalu gets 22 Food Lions in MD, Pennsylvania, VA, and West Virginia. As part of its northward expansion up the Atlantic Coast, Publix is buying 10 Martin’s stores in the Richmond market while in eastern Massachusetts, Big Y is buying eight Hannaford stores. Tops will buy one Stop & Shop in MA and three Stop & Shops and 2 Hannaford stores in New York state. Albertson’s Acme unit gets a Giant location in Salisbury, MD and Saubel’s is buying a Food Lion in York, PA……In what it calls a “shotgun marriage,” The New York Post is reporting other potential buyers have dropped out of the competition to buy the Cabela’s chain, leaving a partnership between Bass ProShops and Goldman Sachs as the likely buyers. The paper adds the two chains are about the same size and once together would be the dominant seller of outdoor and hunting gear in the country……GeneralMotors dodged a bullet on the potential production delays that could have been caused by the bankruptcy of parts supplier Clark-Cutler-McDermott. GM lawyers went to court and won the ability to retrieve tooling and already-finished parts; GM says it now does not anticipate any disruptions to production……Yum Brands’ domestic same-store sales were mixed for its latest quarter, with KFC units up 2%, Pizza Hut up 1%, but Taco Bell locations down 1%. On a corporate level, profitability is very heavily impacted by a heavy concentration in China, and results there gave Yum a 44% increase in net income……Canadian company Alimentation Couche-Tard, parent of the Circle K chain of convenience stores in the U.S., is making it very clear: the CEO says “We continue to grow and do not intend to slow down any time soon.” Currently in the process of integrating the former KangarooExpress stores it took over, Couche-Tard is seen as a possible buyer of CST Brands (which includes the Corner Store banner as well as Nice N Easy in the Northeast and Flash Foods in the Southeast) which is reported to be on the market. For its latest fiscal quarter, U.S. Couche-Tard same-store merchandise revenues were up 3.2% and same-store fuel sales rose 3.6% with the margin on fuel up 1.32 cents per gallon to 16.78 cents.
NETWORK NEWS
The Late Late Show with James Corden was nominated for an Emmy its first time out—but The Late Show with Stephen Colbert was not, as CBS got mixed news for its late night talkers. HBO again got the most nominations, 94, followed by FX at 56 and Netflix 54. Then came the broadcast networks, with NBC at 41, ABC and CBS 35 each, FOX 29 and PBS 26. The68th Emmy Awardswill air live Sunday, September 18, at 7:00 pm (ET) on ABC,hosted by Jimmy Kimmel.
WEDNESDAY RATINGS
America’s Got Talent on NBC beat The ESPY Awards on ABC and Big Brother on CBS. The Nielsen overnights put NBC at an average 1.9 rating in Adults 18-49 and 5.8 in Households, with an average audience of 9.734 million. ABC was at 1.6 18-49, 3.5 HH and 5.480 million; CBS 1.0 18-49, 2.5 HH and 4.023 million; FOX 0.9 18-49, 1.9 HH and 3.052 million; Univision 0.7 18-49, 1.0 HH and 1.771 million; Telemundo 0.6 18-49, 0.9 HH and 1.535 million; and The CW 0.4 18-49, 0.8 HH and 1.314 million.
FCC TO STICK WITH RETRANS RULES
Writing on the FCC’s blog, Chairman Tom Wheeler says more rules are not what is needed for retransmission consent, so the Commission will stick with its current standard of looking at the “totality of circumstances” to determine what constitutes good faith negotiations.
“Now let me be clear; this does not mean the FCC will turn a blind eye to disputes,” Wheeler said. He called on the parties involved in retrans disputes to take seriously their responsibility to consumers, who want to watch their preferred broadcast TV programming and receive the subscription TV service they’re paying for.
Wheeler pointed to the current standoff which has pulled Tribune Media stations from Dish Network for several weeks. The FCC’s Media Bureau requested information from both parties to determine whether they are negotiating in good faith. “If that review reveals a dereliction of duty on the part of one or both parties, I will not hesitate to recommend appropriate Commission action,” Wheeler wrote.
AUTOMOTIVE UPDATE
The California Air Resources Board has rejected the plan from Volkswagen AG to fix 16,000 3.0-liter diesel Volkswagens, Audis and Porsches in the state equipped with emission test cheating devices. If no fix is possible, VW might have to buy back all of the vehicles, potentially adding billions to the cost of the scandal……The Federal Trade Commission has approved a final consent order with two Ohio auto dealers. Progressive Chevrolet and Progressive Motors of Massillon, OH may not advertise the amount of any monthly payment, down payment or other payment unless they also clearly disclose qualifications for a customer to receive the deal. Also, the deal says they cannot advertise a payment amount, or that no initial payment is required at lease inception, without clearly disclosing other key terms. The dealerships had agreed to the settlement late last year and said they cooperated in the FTC investigation……Jeep is the hottest brand for FCA and the automaker announced that it will invest more than $1 billion to retool its Toledo, OH and Belvidere, IL plants to boost Jeep production.
AVAILS
LSM: KVAL-TV CBS 13 in Eugene, OR seeks a driven sales leader to motivate and direct a top performing sales team. The Local Sales Manager must be on the streets with AEs and participate in the development of NTR and digital revenue. 2+ years of successful sales management experience, and a proven ability to work in a fast paced environment required. Candidates must be creative, strategic and driven. Matrix and Wide Orbit skills preferred. APPLY HERE. Equal Opportunity Employer and Drug Free Workplace!
NewsChannel 12 (ABC and FOX) in beautiful eastern North Carolina is looking for a full-time Executive Producer in our New Bern location to help manage our dynamic newsroom. This is a great opportunity to earn your management stripes. You'll work closely with the News Director and Assistant News Director in running all aspects of the News Department. Qualified candidates must be savvy with web posting and social media. Send resume to: . Background check/driving record review required. Bonten Media group is an EOE.
WISH-TV/WNDY-TV/wishtv.com – Indianapolis seeks an outgoing Account Executive with a self-starter mentality and a history of provided exceptional customer service. This individual must be able to develop and coach custom solutions for clients across television and digital platforms. Emphasis on new business development will be key for this individual where high earning potential and flexible work life balance can be met. Must embrace technology and exude a positive attitude at all times. If you are an ascending sales professional, we want to talk to you.Apply at EOE/MINORITIES/FEMALES/VETERANS/DISABLED
National Sales Manager:WLNE - TV, the ABC affiliate in Providence, RI is currently looking for a seasoned pro to drive our national sales effort. Organization, communication and computer skills are critical. Ability to develop business beyond the rating book is essential. Previous sales management experience preferred. Please send resume and cover letter to: or via mail to Human Resources, WLNE-TV, 10 Orms Street, Providence, RI 02904. EOE - all qualified candidates are encouraged to apply.
NCC Media in Minneapolis seeks an Account Executive. Responsibilities include calling directly on agency personnel to represent NCC Media affiliates in the sale of cable advertising time to the national clients. If you have the drive, we can offer you a chance to work with a knowledgeable and successful staff that will aid you in becoming one of our many stellar employees. Email resume/cover letter to . NCC offers excellent benefits, a great working atmosphere and the opportunity to grow and advance in the industry. EOE
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--Jimmy Fallon
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SPOTS N DOTS
The Daily News Of TV Sales
July 15, 2016
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