Spots N Dots
The Daily News Of TV Sales
July5, 2017
JUNE AUTO SALES: TOUGH MONTH FOR DETROIT 3
TOYOTA, NISSAN, HONDA GET SMALL GAINS
The sixth month of the year became the sixth straight month of declining automotive sales, but the pain was not equal. The Detroit 3 each showed significant declines compared to June of last year, while the Big 3 of Japan— Toyota, Nissan and Honda--managed to shows small gains in a down market, mostly due to improved truck sales.
General Motors was down 4.7% overall, still pointing to self-imposed restraint on fleet sales as a reason for losing share. By brand, Chevrolet was off 6.4%, GMC fell 3.6% and Cadillac was off by 12%. Buick was the star, up 16% due to demand for the new Envision crossover.
Ford was off by 5.1% after having posted its first positive month of the year in May. Pickups and vans were up 1.2% and SUVs and crossovers were up 3.2%, but a 23% drop in car sales dragged the company down. Its Lincoln brand however, posted a 5.3% gain.
Fiat Chrysler recorded a 7% loss, with every brand except Ram down. Retail sales were down 5%, with fleet deliveries off by 15%, although even with that cutback fleet sales accounted for 25% of all FCA’s June deliveries.
Toyota posted its first positive month so far this year, up 2.1% after having been down 4.7% for the year’s first five months. Still, Lexus sales are troublesome, down 5.4%, making it nine months now with negative numbers for the luxury brand. Toyota’s hottest models are the RAV4, Highlander, and 4Runner, all up 20%+ compared to last June. Nissan’s luxury brand Infiniti outpaced its bigger selling brand, up 11% while Nissan itself was up just 1.2%. Honda’s luxury brand Acura also had a good month at +24% but the Honda division only managed a 1.3% increase. The GM of the Honda division commented the market is “catching its breath.”
Volkswagen continued its recovery from the scandal-marred numbers of 2016, posting a 15% gain, but some other of the smaller brands also had good months including Subaru (up 12%), Mitsubishi (up 5%), and Mini (up 10%). Mazda did not do well, down 15%.
Among the other luxury brands, BMW was up 0.4% while Mercedes managed a 1.7% gain, Audi rose by 5.3%, Land Rover gained a point and Jaguar was up 7.4%. But Volvo was down 15%.
Although six straight months of negatives appear to be discouraging, Automotive News reports retail demand— vehicles sold by dealerships—is down less than 1% at the year’s half-way point. And the average transaction value for June was up by 1.5% from last year, suggesting dealers’ dollar sales could be at least as high as last year.
ADVERTISER NEWS
Camping World, which bought Gander Mountain and Overton’s in a bankruptcy auction in May, says it will operate 57 stores of the old chain (out of 160) assuming it can make the right deals with landlords. The remaining stores will be called Gander Outdoors and carry a mix that includes Overton’s boating-oriented merchandise along with Camping World products and services…… The Minneapolis Star Tribune reports Target plans to expand sales of adult beverages in more than 300 stores, as beer and wine sales have made adult beverages the chain’s fastest growing division. Craft beer has been especially strong and the chain localizes the assortment based on the store’s location……Pier 1 same-store sales were flat for its latest fiscal quarter, but with slightly fewer stores than last year total sales were down 2.1%. During the quarter it opened one new store and closed three (it’s now at 1,106 locations) and will be closing 20-25 stores during the current fiscal year……Bassett Furniture had a 7% increase in sales during its latest fiscal quarter, which helped to produce a 30% increase in operating income. Company-owned comp store sales were up 6.3% with total sales for the store chain up 8.4%...... Schnucksis the latest regional supermarket chain to expand same-day delivery, teaming up with Instacart for the majority of its Midwestern stores. The chain had started a test of the service in February……And The Fresh Market is the latest supermarket operator to launch meal kits with its “Little Big Meal” program, offered as a meal for a family of four priced under $25, available at all 176 stores. In a related note, a projection from food industry consultancy firm Pentallect POV says that while the meal kit market currently is just a “rounding error” in the $1.5 trillion food industry, it’s projecting annual growth in the 25-30% range for the next five years—and that’s expected to cause the restaurant industry to lose millions of customer occasions and billions of dollars……West Marine, with over 250 stores in 38 states, has been bought out by private equity firm Monomoy Capital Partners for $338 million, and will continue to be operated by the current management team. Monomoy has investments in several different businesses, but is not currently involved with any retailers…..With parent Jack in the Box reported to be considering the sale of its secondary Qdoba Mexican Grill chain, Qdoba franchisees are forming a franchisee association saying “Given the uncertainty with the brand, we think we need to be consolidated in protecting our interests and investments.” About 340 of the 717 Qdoba units are franchised.
NETWORK NEWS
The Carmichael Show won’t return for a fourth season on NBC. The network and the studio announced the decision shortly after the creator and star Jerrod Carmichael revealed he would be exiting the series. The show scored an eleventh-hour renewal last year, with a deal coming after NBC had announced its fall schedule and its executives had faced questions about the show’s uncertain future. The series was relatively stable in the ratings. Airing on Wednesdays just behind Little Big Shots and its offshoot Little Big Shots: Forever Young, the comedy’s adult 18- 49 ratings have stayed within the 0.7-0.9 range……Variety says Fox is developing a new singing competition series as an answer to the news that America Idol will be revived on ABC. The project is from Israeli producer and distributor Armoza Formats, and although no series order has been finalized, development was accelerated in May after ABC closed the deal to bring American Idol back. American Idol ended a 15-season run on Fox in 2016 after the show suffered rating declines and lost its position as television’s highest-rated series, an honor it held for eight consecutive seasons…… Two of the veteran cast members of the CBS series Hawaii Five-O will not be returning for the show’s eighth season. Daniel Dae Kim, who played Chin Ho Kelly, and Grace Park (KonoKalakaua), will exit the show. CBS plans to update fans on their characters in the season premiere of Hawaii Five-O on Friday, September 29th. Kim’s return to the series was up in the air after his new medical drama, The Good Doctor, which he co-created with David Shore, was picked up to series by ABC……NBC’s summer hit competition show World of Dance has been picked up for a second season. The series provides dancers with a platform to showcase their talents and compete for a grand prize of $1 million. Jennifer Lopez is a producer of World of Dance and serves as a judge along with Ne-Yoand Derek Hough. Jenna Dewan Tatum is the show’s host.
ADVERTISERS NOT SHOWING THE NFL LOVE
Ad Age reports ad sales for the 2017-18 NFL upfront have been softer than sellers originally had anticipated. A number of factors have conspired to make this the softest upfront since the Great Recession of 2008.
And Ad Age is quick to point out that NFL football games are the most-watched, highest-rated commodity on TV. In a season in which the average new scripted broadcast series was lucky to get a 1.0 rating in the 18-to-49 demo, Sunday Night Football last year drew a 7.0. There’s a reason why 30-second spots in some nationally televised NFL packages are pricing north of $800,000 per spot.
One buyer told Ad Age, “The year-to-year [pricing] increases in NFL games are more modest than in years past, but when you look at what’s going on with the entertainment stuff in prime, there are worse problems you could have as a network. You could have no football.”
The same buyer estimated that the average rate for ad time in this fall’s NFL games is up between 2% and 4%, but Fox may be getting as much as 6% more due to its schedule, which features six Cowboy’s games.
DONE DEALS
KGW, Portland, OR has named Charlie Mirkleas its new local sales manager. Mirkle starts his new position today. He joins KGW from WVEC, the ABC affiliate in Norfolk, VA, where he led enterprise and digital revenue development. Before that, he was the station’s national sales manager. Prior to his work at WVEC, Mirkle served as LSM for Cox Media.
THIS AND THAT
Kia Motors America has named Bill Peffervice president, sales, effective July 24. Peffer, who was once a sales exec with Cadillac, joins Kia from Balise Motor Sales—a large, privately-held dealership group in the Northeast. He will oversee Kia’s regional and corporate sales operations in the United States and report to COO/EVP Michael Sprague……The Census Bureau notes that the first TV commercial allowed by the FCC was broadcast on July 2, 1941. A :10 proclaiming “America runs on Bulovatime” aired on WNBT New York (now WNBC) in a Brooklyn Dodgers game against the Philadelphia Phillies. Consisting of nothing more than the image of a ticking clock against a U.S. map, the ad cost Bulova just $9.
ECONOMIC NEWS
Here’s a little more good news about the economy: the final read on first quarter Gross Domestic Product was significantly better than had originally been believed, now estimated to have been up 1.4%, with stronger exports and consumer spending on services having picked up the number. For the second quarter that ended last week, it’s expected GDP will be up from 2.9% to 3.3%, with Federal Reserve Chairwoman Janet Yellen having said “Following a slowdown in the first quarter, economic growth appears to have rebounded.”
BUSINESS BRIEFS
We reported last week that the restaurant industry has averaged opening 18 new locations every day and according to the American Express Restaurant Trade Survey that’s not likely to change very much in the near future. Despite lethargic same-store sales, restaurant operators are generally optimistic with 54% reporting revenue ahead of a year ago, and 72% expecting revenue to grow over the next year. Relatedly, 83% say they will need to hire people and about a third of operators expect to seek financing to expand locations or add technology to existing operations. Although it’s now quite certain that new vehicle automotive sales will be down the year, The Detroit Bureau says dealerships are still expected to sell more cars and trucks this year than last thanks to the robust demand for used vehicles. Jonathan Smoke, Chief Economist for Cox Automotive says the latest data indicates the shift is already underway, noting “Dealers are selling more vehicles, but the mix is changing and shifting from new to used.” Cox has projected about 3.6 million lease vehicles will be returned to dealers this year (up from 3 million last year), providing dealers with an “affordable, appealing alternative to new vehicles.” And as we have noted in the past, dealers usually have a higher margin as a percentage on used vehicles than they make on new vehicles, and in many cases the actual dollar profit can exceed the profit on new vehicles despite the lower selling price.
WALGREENS NEW DEAL NO SLAM DUNK
After the failure of the Walgreens merger with Rite Aid was replaced by a deal for Walgreens to buy over 2,000 stores, Drug Store News says it’s not certain the Federal Trade Commission will allow this deal to happen either, noting “How much market share is too much for the FTC is unclear.” A couple of other takeaways, per DSN: The Federal Trade Commission hates health-related mergers and acquisitions—not only was this deal shot down but so have deals with Aetna, Humana, Anthem, Cigna, Allergan and Pfizer been opposed. If the deal does go through, Rite Aid emerges as a much leaner, multi-regional chain with its stores concentrated in the middle of the country and west coast…with a bunch of cash to finally pay off its debt. Another benefit for Rite Aid is that it can join Walgreens’ generic buying consortium, giving it the purchasing clout of a much larger buyer.
STRONG UPFRONT FOR DISNEY-ABC
Disney-ABC finished its Upfront sales ahead of the July 4th holiday weekend—its first with Rita Ferro as President of Sales. Adweek reported that CPMs were up in the high single digits across all dayparts for ABC and the company’s cable portfolio. Late night and kids saw low double-digit pricing increases. Overall revenue is expected to grow in the high single digits across broadcast, cable and kids with a 20% increase in digital sales.
ABC was the second of the Big Four to call it a wrap on the Upfront. CBS had finished a week earlier, with primetime CPMs up in the high single digits, along with high single-digit to low double-digit increases in morning, daytime and late night. The CW, meanwhile, reportedly pushed for CPM increases in the high single digits to low double digits and wrapped up its Upfront about the same time as CBS.
Are you reading the rumor that Verizon wants to buy Disney? Wells Fargo media analyst Marci Ryvickercommented, “What would a wireless juggernaut want with a theme park, a (huge) consumer products line and the various movie studios?”
It’s fair to say she and a few others don’t believe the report, published by the New York Post. Stay tuned.
DIRECTV NOW ADDS LOCAL TV STATIONS
DirecTV Now doubled the number of local TV stations being offered on its virtual MVPD service from last November’s launch with this week’s addition of more ABC, NBC and FOX affiliates. With the expansion, DirecTV Now says it has live local coverage in almost 70% of U.S. TV households. The service added ABC in more than 30 markets including Atlanta, Dallas-Fort Worth and Boston; NBC in four new markets, including Kansas City, Salt Lake City, Milwaukee and West Palm Beach; and it added FOX in Juneau, AK. By the end of August, DirecTV Now say it will have tripled the number of markets with live local TV since its launch.
AVAILS
8 News Now, KLAS Las Vegas is looking for a General Sales Manager. The GSM develops and executes sales strategies which result in exceeding revenue targets in local, national, digital and new product revenue, and provides strong management and leadership for the broadcast/ digital managers and sales teams. A bachelor’s degree and a minimum of five years’ experience in media sales required. Keen negotiating skills required. Please CLICK HEREfor more info or to apply now. EOE.
If you’ve ever wanted to work in one of America’s best places to live, here is your opportunity! WKOW, the ABC affiliate in Madison, WI has an immediate opening for an account executive. The AE will help an established client list grow its bottom line with Green Bay Packers Football, Big 10 Football, local sports and news from the 2016 Wisconsin Broadcasters Association Station of the Year. This is your chance to live and work in the home of the Wisconsin Badgers! Resume to . No calls please. EOE.
WTAT FOX 24 in Charleston, SC is searching for a Digital Sales Manager. The ideal candidate must be able to coach, train, and lead our team of account executives to attain individual and collective Digital goals across all of our platforms. This candidate must have a proven history of developing and executing successful client-specific campaigns, and professional knowledge of SEM, SEO, and all aspects of targeted display advertising. Resume to nd include “WTAT- DSM” in the subject line. No calls please. EOE.
A woman gave birth to a baby on a Spirit Airlines flight. When the flight attendant said, “Is there a doctor on board?” the passengers said, “Of course not. This is Spirit Airlines.”–Jimmy Fallon
A company in New York has opened a nonalcoholic cocktail bar that creates drinks using herbal ingredients instead of alcohol. And they’re using empty chairs instead of customers.–Conan O’Brien
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SPOTS N DOTS
The Daily News Of TV Sales
July5, 2017
Phone: 888-884-2630