Spots N Dots
The Daily News Of TV Sales
September 28, 2017
PAY-TV SUB HOUSEHOLDS DROP BELOW 80%
CABLE NET PENETRATION ALSO DOWN
New consumer research from Leichtman Research Group (LRG) finds that only 79% of TV households nationwide subscribe to some form of pay-TV service. The percentage of TV households that subscribe to a pay-TV service is down from 84% in 2014, 88% in 2010, and 81% in 2004.
A separate report from analyst Brian Wieserat Pivotal Research Group finds yet another monthly decline in household penetration by cable networks. While the October numbers from Nielsen indicate that the total number of TV households rose by 1% from a month earlier, the median cable network lost 3.1% of their subscribers—continuing a trend that has been reported here for many months.
LRG president Bruce Leichtmannoted that the 79% figure for cable/satellite/telco video service is down from its peak at the start of the decade and marks the first time since the early 2000s that fewer than four-in-five TV households subscribe to a traditional MVPD. “The decline in pay-TV penetration is not solely a function of recent disconnects. Among those that do not currently get a pay-TV service, about one-third subscribed in the past three years, one-third subscribed over three years ago, and one-third never subscribed,” Leichtman explained.
Among TV households that do not currently subscribe to a pay-TV service, about two-thirds were former pay-TV subscribers, while one-third never had pay-TV. Overall, about 7% of TV households subscribed to a pay-TV service in the past three years, 7% last subscribed to pay-TV over three years ago, and about 7% never subscribed to a pay-TV service.
Not having a pay-TV subscription is not driven exclusively by income. In fact, only 16% of households with an annual income under $50,000 do not subscribe to an MVPD. For households with incomes greater than $50,000 the non-subscriber figure is 29%.
Not everyone without a pay-TV subscription is watching TV the old fashioned way, with an over-the-air (OTA) antenna. LRG found that 92% of TV households have a pay-TV service and/or an OTA antenna—compared to 94% in 2015.
Nielsen is gradually adding more data about virtual MVPDs, including (so far) Sling TV, PlaystationVueand DirecTV Now. Pivotal’sWieser says those vMVPDs add an incremental 1.5 million households to a broader definition of “Total Cable Plus” homes. But there were subscribers to vMVPDs a year ago—they just didn’t get counted. Excluding the vMVPDsWieser figures the number of pay-TV homes was down about 2.9% from a year ago. Including the vMVPDs likely reduce that to a decline closer to 2%, he said.
Will subscribers return? LRG’s data shows that only 10% of non-subscribers plan to subscribe to a pay-TV service in the next six months. Meanwhile, 30% of people who moved in the past year do not currently subscribe to a pay-TV service—a higher level than in previous years.
ADVERTISER NEWS
BJ’s Wholesale Club will soon be up for sale again according to The New York Post. The chain was taken private in 2011 by CVC Capital Partners and Leonard Green & Partners in a $2.8 billion deal and the owners are now looking to sell for $4-4.5 billion. Other private equity firms are seen as most likely buyers for the 213 warehouse chain which offers them a “steady $250 million annual revenue stream from fees members pay”…… There’s some movement towards a possible settlement of that strike against General Motors in Canada that threatens the supply of the Chevrolet Equinox. The two sides started to meet this week reporting some progress although the local’s president said “several issues remain outstanding”……Sales numbers for the last several months have shown this, but new analysis from Edmunds confirms the midsize sedan “is no longer the vehicle of choice” for the American family. Midsize sedans had been the top-selling vehicle segment for 20 of the last 27 years but have fallen to fifth place this year (a 10.7% market share) behind compact SUVs, large trucks, midsize SUVs and compact cars. New Toyota Camry and Honda Accord models are coming out for 2018 with “edgier design and a sportier image,” attempting to revive sales in the segment……Sonic drive-ins may be the next company to need to deal with security problems; its credit card processor told the company there’s been some “unusual activity” regarding cards used at its locations, which may have led to credit and debit card numbers being sold in underground exchanges……Meal kits are still relatively new, but already there’s a “value-oriented” alternative appearing on the scene. Supermarket News reports Dinnerlyis looking to infiltrate the market at a $5 per serving price point and simplified recipes. The product launched on the West Coast a few months ago and has now rolled out nationally……Noting “the fast-casual revolution is over,” Nation’s Restaurant News reports that segment of the restaurant business averaged a 3.2% same-store sales decline in the second quarter, eliminating the volatile results from Chipotle Mexican Grill. NRN adds the decline has hit some small concepts particularly hard, even leading entire chains to shut down, which it sees as a rarity in a business in which investors are “routinely willing to take chances on existing brand names,” and notes well over 100 fast-casual locations have closed so far this year……Freshiiis closing 18 locations inside Target stores, saying “sales levels of these locations did not support a continued investment by both parties.” The Toronto-based chain is still expanding in the U.S., currently working with multi-unit franchisees in California, Florida, South Carolina and Virginia.
NETWORK NEWS
On the heels of a stellar Monday night premiere, CBS has given a full-season pickup to The Big Bang Theory spinoff Young Sheldon. The order is for nine additional episodes, bringing the comedy’s first season total to 22. It is the first new series of the 2017-2018 season to receive a full-season pickup. Young Sheldon drew a 3.8 rating in the adult 18-49 demo and delivered 17.2 million total viewers. The series stars Iain Armitage as a younger version of Jim Parson’s Big Bang Theory character. Young Sheldon will move to its normal time slot on Thursday, November 2nd at 8:30 PM with a commitment from CBS to promote the new show and keep it scheduled as a lead-out of The Big Bang Theory……The second season premiere of the NBC hit This Is Us scored a 3.8 Live + Same Day rating and 12.6 million total viewers improving on its lead-in, The Voice, which posted a 2.6 demo rating. This Is Us improved on its Season 1 premiere and was up 12% from its previous series high, set by the Season 1 finale. The demo performance by the series beat the ABC-CBS-Fox competition combined and was NBC’s top-rated scripted program in the time slot in 10 years……. Executive producer McG(The O.C.) is back at Fox with a script commitment plus penalty for a new soapy drama about young people in an affluent area on the Southern California coast. Silicon Beach is named after the West Los Angeles area close to the Pacific Coast that is home to over 500 tech startup companies. It centers on a 26-year-old who lives at home with her family. She’s an amoral venture capitalist surrounded by unimaginable wealth and opportunity and fights to make her mark and keep her soul in the cutthroat world of tech startups. McG is working with the co-executive producer of The Vampire Diaries, Brian Young and 20th Century Fox TV……. British actress NataschaMcElhoneis leaving ABC’s Designated Survivor after she finishes filming the second season. McElhone stars opposite Kiefer Sutherland in the Washington D.C. thriller. She plays Alex Kirkman, the first lady to Sutherland’s President Tom Kirkman. McElhone will star with Sean Penn in The First, from House of Cards creator Beau Willimon. The drama is set to premiere on Hulu in 2018……Emmy winner Bob Newhart is set to reprise his role as the late Arthur Jefferies/Professor Proton in the November 2nd episode of The Big Bang Theory. Will Wheaton will also reprise his role as Sheldon’s on-again-off-again nemesis in the same episode.
ACCOUNT ACTIONS
Sports footwear brand Asics has selected Saatchi & Saatchi as its global creative agency, succeeding 180LA. Asics spent an estimated $35 million on U.S. advertising last year……Adweek reports that the American Heart Association has selected its first global agencies of record. The nonprofit selected CP+B Boulder as its first global advertising AOR and Edelman as its global public relations AOR.
BLACK FRIDAY INCREASINGLY DIGITAL
It’s nearly two months away, but Salesforce is out with a prediction that Black Friday will be the busiest digital shopping day in U.S. history, exceeding Cyber Monday as the U.S. digital shopping day with the most sales for the second year in a row.
In making its 2017 holiday shopping season predictions Salesforce combined insights on the activity of 500 million global shoppers across 53 countries and billions of transactions powered by Commerce Cloud; millions of public social media conversations analyzed through Marketing Cloud; and data from Salesforce’s annual Connected Shoppers Report.
Based on its data analysis, Salesforce says the most popular online shopping time for website visits and orders is from 8pm to 10pm. It predicts that consumers will only have 50% of their holiday shopping completed by Sunday, December 3rd and 80% completed by Friday, December 15th.
The forecast says Cyber Week (Thanksgiving to Cyber Monday) will see both the deepest discounts (average of 28% off list price) and highest rate of free shipping (86% of all orders will have it). Beyond Cyber Week, Monday, December 11th will have the deepest discounts and highest availability of free shipping.
Mobile traffic to retail sites will grow to 60% of total across the globe this shopping season (compared to 34% for desktop and 5% for tablets), while orders placed on phones will approach 40% on big shopping days such as Black Friday.
“Just like watching television, holiday shopping has moved from an appointment based activity to an on-demand activity,” said Rob Garf, VP industry insights, Salesforce Commerce Cloud.
AUTOMOTIVE UPDATE
You’ve probably already guessed this, but new data from Edmunds confirms that families now prefer SUVs and pickups to the traditional midsize sedan, which had spent 20 of the past 27 years as the best-selling vehicle category in the U.S. Midsize sedans were the top-selling vehicle segment as recently as 2014, but so far in 2017 have tumbled to fifth behind compact SUVs, large trucks, midsize SUVs and compact cars. Market share for midsize sedans is now a meager 10.7%—the segment’s lowest share since Edmunds began its tracking in 1991. Even with new 2018 models of the two most popular cars in the segment, the Toyota Camry and Honda Accord, Edmunds analysts say it’s highly unlikely the midsize sedan segment will ever return to its former glory……Cadillac has introduced its hands-free driving technology, sending a fleet of 12 Super Cruise-equipped Cadillac CT6 vehicles on a cross-country trip from New York City to Los Angeles. The hands-free highway driving Super Cruise technology will be offered beginning this fall on the 2018 CT6.
DONE DEALS
Hearst Television has announced that Eric J. Meyrowitz, vice president of sales at Hearst Television since 2014, has been promoted to senior vice president of sales, with oversight of the sales operations of the company’s television and radio station and various web platforms.
Meyrowitz returned Hearst Television after serving as vice president and general manager of WPIX New York. Prior to that, he was the national sales manager for WBAL, the Hearst-owned NBC affiliate in Baltimore. He also had sales management roles at WDCW, the CW affiliate in Washington, D.C., and HRP in New York.
AVAILS
National Sales Manager – Washington DMA: Comcast Spotlight, Washington’s top media sales organization is seeking a driven National Sales Manager to oversee our National business. The ideal candidate will have vast and strong demonstrated experience in Multi-media advertising sales. Responsible for developing and leading sales strategies to grow our business by targeting new clients, developing key relationships, and providing excellent account management.Manages direct and indirect reports. Required travel based on clients/business needs. 7+ years related experience. CLICK HEREto apply. Comcast is an EEO/ AA/M/F/D
FOX 5 Atlanta (WAGA) seeks an Account Executive. The AE is responsible for maximizing share on established television and digital accounts as well as developing new accounts by converting marketing dollars from competitive TV stations and alternative advertising platforms. The AE will service established agency accounts as directed by sales management, and establish direct client contact while maintaining cooperative relationships with the agencies. CLICK HEREfor a full job description. Please include your resume and salary requirements when applying. EOE.
THE KUBE/TV 57 – Houston’s fastest growing television station is looking for Account Executives. We want positive, self- motivated, passionate sellers in our growing company. Candidates should possess the drive and initiative to WIN! We are looking for Order Getters, not Order Takers. Solid references and a history of sales performance are critical – and you must be able to reach key decision makers. Prior sales experience in TV, radio or cable required. Send resume, references and cover letter explaining why you are the right candidate to: . EOE.
WMAQ-TV, the NBCUniversal television station in Chicago is looking for a dynamic Account Executive. The AE is responsible for delivering sales revenue, and cultivating and developing new advertisers for the station’s multi-platform properties. The ability to work with clients of all levels of business is paramount, from large cap, medium and small businesses, in addition to exploring unique paths to procure business. Minimum 5 years of experience in sales and/or marketing roles required. CLICK HEREfor more info or to apply. EOE.
General Sales Manager: Seeking dynamic, multitasking visionary to lead sales operations for WEHT-ABC and WTVW-CW and digital platforms in Evansville, IN. The GSM oversees all sales, sales managers, AEs and sales support and is responsible for departmental strategy and achieving sales budgets and growing new business. Must be active in the community, go on sales calls, build relationships and stay ahead of competitive media. Minimum of 7 years sales experience in media, and a Bachelor’s Degree preferred. CLICK HEREto apply. EOE.
KIRO-TV in Seattle is interviewing for an Account Executive opening. The successful candidate will be an excellent negotiator of transactional and direct business with a track record of growing share, developing new accounts, an understanding of ratings and estimates and a strong ability to forecast revenue goals. Minimum three year successful track record in media sales preferred. Ability to develop relationships and bring relevant opportunities to all levels at agencies and accounts is required! CLICK HEREfor info or to apply. EOE.
Edward R Murrow Award Winning Broadcaster WJZY, the FOX O&O in Charlotte, NC is looking for a Traffic Coordinator. This person will be responsible for the accuracy of spot placement and separation of the log, and front loads each week in an effort to maximize the inventory and ensure inventory is not left unsold. The candidate must be detail oriented and able to handle multiple tasks in a fast-paced environment. CLICK HEREfor more info or to apply. EOE.
An employee for the Buffalo Bills quit after the team took a knee during the national anthem. Meanwhile, an employee for the Los Angeles Chargers quit after watching them play on Sunday.–Conan O’Brien
Whenever my kid’s teacher asks how I’m doing, I always want to reply, “Why? What did my kid tell you?”–FunnyTweeter.com
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SPOTS N DOTS
The Daily News Of TV Sales
September28, 2017
Phone: 888-884-2630