Spots N Dots
The Daily News Of TV Sales
June15, 2017

VIEWERS LIKE VIDEO RECOMMENDATIONS

EVEN CHEAPER BUNDLES SOUGHT

The 17th edition of TiVo’s quarterly Video Trends Report focused on what is driving OTT growth, while MVPD subscriptions are declining. Of Netflix subscribers, 57.7% selected the ability for each household member to have their own profile as their top Netflix feature, while 40.7% liked that Netflix recommends content based on previous viewing habits. Additionally, when finding something to watch, pay- TV subscribers with access to video recommendations were found to be 15.2% more satisfied than those without them. Based on these benefits, the TiVo analysts say it seems pay-TV providers may not be rolling out user experience upgrades such as recommendations as fast as consumers want them.

Survey respondents continue to say they would like to be able to build their own skinny bundle and pay only for the channels they actually watch. The figure was 77% this time around. TiVo has tallied respondents’ ideal price per channel since Q3 of 2016 and a clear trend has emerged: prices are declining. In Q1 of 2017 the average price respondents will pay for the top 20 channels is $28.31, a slight decrease from Q4 of 2016, and a 14% decrease over two quarters.

TiVo also looked at whether people are streaming sports. 34.3% of respondents said they are “always” or “sometimes” frustrated when trying to find their favorite team, or sporting events in general. But the TiVo analysts call it a “new and prevalent threat to pay-TV providers” that social and OTT services are offering sports content to their viewers. As streaming services become a new avenue for watching sports, TiVo added two new questions to gauge traction among consumers. In Q1 2017, 13.5% of respondents answered that they have watched a live sporting event on a social media network such as Twitter or Facebook.

Churn continues to be an area of focus. Of respondents with pay-TV service, the TiVo research found that 8.8% switched providers in the last three months. When asked if they plan to change pay-TV providers in the next six months, results broke down as follows: 7.2% plan to cut their pay-TV service; 6.6% plan to change to another pay- TV provider; 3.5% plan to switch to an online service or app; and 31.6% are on the fence, answering “maybe,” an answer that increased 2.0% quarter over quarter.

Those figures, which increased slightly from Q4, total 48.9% of respondents—meaning nearly half could potentially leave their current pay-TV providers in the next six months. That may not be a surprise, but the TiVo report says “it does add further proof that disruption is taking place in the pay-TV industry.”

ADVERTISER NEWS

Best Buy will team with San Francisco-based startup Lumoidto offer rentals for items such as cameras, audio equipment and fitness trackers. The Bestbuy.com website will feature the try-before-you-buy option and direct customers to Lumoid’s website to make the rental. The idea is seen as a way for the retailer to get revenue out of “open box” items (merchandise returned by a customer which can’t be resold at full price) and also offering an option Amazon does not have, at least not yet……Speaking of Best Buy, This Week In Consumer Electronics thinks it’s entirely possible that company will take over third place in appliance sales this year, passing Sears as that chain continues to close stores. Right now, the top three (Lowe’s and Home Depot are number one and number two) combine to control almost 58% of all sales of the top 50 retailers…… Neiman-Marcus is ending its effort to sell itself; the luxury chain had announced it was looking for a buyer earlier this year. The Wall Street Journal had reported Saks Fifth Avenue parent Hudson’s Bay Company had been in talks with Neiman’s equity fund owners, but the parties could not agree on a price. Neiman said this week sales for the February-April period were down 4.9%...... The Cheesecake Factory is the latest in the restaurant business to warn about soft sales. Noting “heightened volatility in week to week sales trends indicative of uncertainty on the part of many consumers” its CEO warned comps which had been positive in the first quarter look like they will go negative in the current quarter. One bright note: with more than half the locations now offering delivery, many are experiencing incremental sales and plans are to expand delivery throughout the country……Despite challenging conditions in the industry, there are always restaurant chains looking to expand. Sonic Drive-In announced five new development agreements this week, including one for the five boroughs of New York City. Although the company says it’s “always a drive-in at heart,” it offers franchisees multiple building solutions to match their needs……Del Taco is also in expansion mode and is offering franchisees that commit to five or more units discounted initial fees and reduced royalties for three years. The chain highlights to potential franchise buyers it has produced 14 consecutive quarters of systemwide same-store growth……Progressive Grocer reports Topvalco, Inc., a subsidiary of Kroger, has won the bankruptcy auction for 11 Marsh stores while an entity of Ohio-based Fresh Encounter will pick up another 15 of the stores. 44 locations had been put on the auction block and the fate of the remaining 18 stores is still unknown.

NETWORK NEWS

Bachelor in Paradise contestant Corrine Olympioshas hired a top Hollywood lawyer in the wake of the suspension of production of the ABC series. Olympios has retained Marty Singer as her lawyer and released a statement to Variety, saying, “I am a victim and have spent the last week trying to make sense of what happened the night of June 4. Although I have little memory of that night, something bad obviously took place, which I understand is why production on the show has now been suspended and a producer on the show has filed a complaint against the production. As a woman, this is my worst nightmare and it has now become my reality.” She went on to say, “I have retained a group of professionals to ensure that what happened on June 4 comes to light and I can continue my life, including hiring an attorney to obtain justice and seeking therapy to begin dealing with the physical and emotional trauma stemming from that evening.” This past Sunday, Warner Bros. Television, which produces Bachelor in Paradise for the network announced production had been shut down due to “allegations of misconduct.”……CBS has named Noriko Kelley as its new head of scheduling. Her official title is executive vice president, program planning and scheduling, CBS Entertainment. In addition to heading up scheduling, Kelley will oversee the programming division’s coordination with sales, marketing, affiliate relations, news, sports, research and the CBS Television Group……Variety confirms that Kirsten Vangsnessand A.J. Cook have finalized agreements to return to the 13thseason of the CBS series Criminal Minds. The new deals include pay raises for the pair that they negotiated together to seek parity with their male co-stars, Joe Mantegna and Matthew Gray Gubler, who both closed their contracts last month. The new agreements with Vangsness and Cook keep the show from experiencing another major cast shakeup, following last season’s departure of Thomas Gibson, who was fired from the show and Damon Gupton, who was part of the cast for only one season and was not asked to return for season 13.

THIS AND THAT

U.S. sales of distilled spirits rose 2.7% in 2016—the 19th straight year of growth, according to the Beverage Information Group’s Liquor Handbook 2017. The American straight whiskey category was up 6.2%, attributed in part to Millennials experimenting with non- Bourbon segments of the whiskey category. Tequila and brandy/cognac showed strong gains of 6.9% and 7.8% respectively. Vodka, whose growth rate has been slowing in recent years, grew 2.1%. But gin, rum and cordials/ liqueurs showed little or negative growth……Simmons Research announced the integration of RMT DriverTags from Research Measurement Technologies into Holistic Psychographics, its system that explains why certain TV shows secure high ratings and certain ads generate higher ROI.

ECONOMIC NEWS

Retail sales were down 0.3% in May according to Commerce Department calculations, the weakest in 16 months, but the decline came almost entirely from automotive and gas sales. Gas sales were down 2.4% with auto dealers off by 0.2%, and if those two are dropped from the comparisons, total retail would be flat with last year. Marketwatchcomments the numbers show retail sales continue to increase at a moderate pace in tune with the steady growth of the economy.

BUSINESS BYTES

In one last look at the recent Temkin Trust Ratings, here are winners that were the most above their industry averages, 11 points or more ahead of those respective averages: USAA (both for credit cards and for banking), Navy Federal Credit Union, Advantage Rent- A-Car and Ace Rent A Car (the rental car business scored near the bottom as a group), USAA, Mercedes-Benz, credit unions as a group, AOL, Chick-fil-A, H-E-B, Siemens, Kaiser Permanente, Regions Bank, Fox Rent A Car, Dominion Virginia Power, Amazon, Apple (as a retail store), TriCarehealth plan, Alabama Power Company, Discover, and American Express. The losers in the study, all at least ten points below their respective industry averages were Airbnb, RadioShack, Days Inn, Commonwealth Edison, Wells Fargo, Kmart, Motel 6, Taco Bell, Spirit Airlines, Time Warner Cable, Avis, Lyft, PG&E, Chrysler, Anthem health plan, Con Edison of New York, Comcast, Liberty Mutual, Citigroup, Safeway, Asus, Health Net, and McDonald’s.

Jet.com is dropping Kirkland Signature products, which makes sense considering the website was purchased by Walmart last year and Kirkland is a label owned by Costco. Walmart has its own Sam’s Club warehouse operation that competes directly with Costco, and Sam’s has been building up its own Member’s Mark private label line. Progressive Grocer says Sam’s has consolidated 21 private labels into the Member’s Mark brand while adding 300 new products and upgrading more than double that number.

TELEMUNDO STATIONS HEAD TO RUSSIA

As the FIFA Confederations Cup Russia 2017 begins this Saturday, and concludes Sunday, July 2, the Telemundo Station Group is sending a team of six journalists to deliver special coverage to the O&O stations. The team will include sports anchors Veronica Contreras from WNJU New York and Jaime Becerrilfrom WWSI Philadelphia. Both will deliver original content for local audiences across all platforms.

The two anchors will host “MinutosRusia,” a feature story segment that will air during the stations’ local newscasts and give local audiences a behind-the-scenes look at the tournament as well as cultural context about the tournament’s host country, Russia.

As the official Spanish-language home of the FIFA World Cup in the U.S. through 2026, all matches will air live on the Telemundo network, including local Telemundo stations, and on Universonetwork.

CEOs ARE ALSO CONFIDENT ABOUT BUSINESS

We reported this week that small-business owners are feeling confident about their prospects for increased business, and now a survey done by KPMG of 400 U.S. CEOs says that the heads of big companies also are optimistic about the next three years. 44% of the CEOs said they are “highly confident” about the future, up from just 23% a year ago. The survey added “CEOs have seen the future and it’s digital. They are building strategies around speed-to-market, technology transformation and scaling up their own business processes and operations.” And while many CEOs see a major “disruption” of their business due to new technology in the next three years, 60% of CEOs now see disruption as an opportunity instead of a threat.

BACK-TO-SCHOOL ALREADY?

School is still in session in some parts of the country, but the first Back-To- School shopping season prediction is already here, and it looks quite good.

The eMarketer forecast calls for 4.0% growth over last year’s B-T-S numbers to an estimated $857.18 billion, about 17% of all retail sales for the year. E-commerce is expected to be up 14.8% to $74.03 billion, but that’s still a relatively small 8.6% share of the total season.

Much of the shift to e-commerce is driven by the millennial and Gen Z students, who, together with their parents, spend back-to-school money on higher-ticket items like electronics.

The key categories are again expected to be Apparel and accessories; Books, music and video; Computers and consumer electronics; Office equipment and supplies; and Toys and hobbies, including sporting goods.

AVAILS

WESH 2, the Hearst Television NBC affiliate in Orlando, Florida has an immediate opening for an experienced Sales Professional. If you are motivated by an excellent product, great compensation, and resources to be successful, while working in one of the fastest growing and most desirable markets in the country, look no further. We provide the tools for powerful marketing solutions, you provide client focus and desire to win. CLICK HEREfor more information or to apply now. EOE.

WWSB ABC 7, the Raycom owned ABC affiliate in Sarasota, Florida seeks a dynamic Director of Sales to lead our team. This individual will have experience coaching, training and leading team members to consistently grow market share and revenue. Candidate must be an innovative leader who knows how to maximize revenue on all platforms including: Digital, OTT, Mobile, Social Media, and any new platform opportunities that may arise. CLICK HEREto learn more or to apply. Be prepared to upload cover letter and resume. No calls please. EOE.

KPNX 12 News in Phoenix, AZ is looking for the best Director of Sales in the country. The DOS will lead all sales efforts, manage a staff of sales managers and provide the strategy and vision to drive the sales team to success with the top priority of driving new business development efforts to grow enterprise revenue. Bachelor’s degree in marketing, business or related field, and a minimum of 10 years of media sales experience in a top 15 market. CLICK HEREfor more info or to apply now. EOE

WLBT, Raycom Media’s NBC affiliate in Jackson, MS has an opening for a Digital Sales Manager to work with other sales management to develop and grow digital revenue. The Digital Sales Manager will lead the station’s efforts in developing new and incremental digital business while reducing digital churn. The DSM will accompany sellers to presentations on a regular basis and assist directly in closing business. CLICK HEREfor more info or to apply now. No calls please. EOE.

Account Executives: CW Richmond is TV to Talk about…Blog about…Text about…and Chat about. We are looking for that ideal person who can talk about the hottest shows on television to businesses around Richmond. CW Richmond is now interviewing for Account Executives. If you are an energetic and creative problem solver who is not afraid of hard work, we want to meet with you! Send resume with cover letter and salary requirements to: . Drug Screen and MVR check required. EOE-M/F/D/V.

Tesla’s new Model X car just got the first ever perfect safety rating for an SUV. Now on one hand, that’s a great accomplishment; on the other, have no SUVs been safe until now?–Jimmy Fallon

A 41 year old gymnast is competing in her 7th Olympics. I just texted my son and offered him $5 to come downstairs and hand me the remote.–FunnyTweeter.com

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SPOTS N DOTS
The Daily News Of TV Sales
June15, 2017
Phone: 888-884-2630