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sales@spotsndots.com Copyright 2017.The Daily News of TV Sales Wednesday, July 12, 2017

TV’S SHARE HOLDS IN A SCALED-BACK AD OUTLOOKSLIGHT DOWNTURN IN OUTLOOK FOR 2017 BIA/Kelsey’s mid-year update predicts total local market revenue will reach $147.9 billion this year. That’s a drop of nearly $1 billion compared to an initial forecast released last autumn. Analysts blame the weaker than expected U.S. economy during the first quarter. While the overall pie may be smaller than first predicted, BIA/Kelsey is now projecting local television stations will pocket a larger share of the available dollars. It estimates local TV revenue will total $20.9 billion in 2017—a 14% share of all spent in local markets. Facing the loss of political ad dollars, the firm’s earlier forecast had pegged local TV’s share at 13.3% for this year, so the latest update suggests stations are holding their own in the face of new digital rivals that have again shaken up how the pie is being sliced. “Mobile has replaced radio in the top five media this year, but the dominant player continues to be direct mail,” BIA/Kelsey chief economist Mark Fratrik said. Even with all the buzz about new media, the firm estimates direct mail will capture one out of every four dollars spent in the local market this year, totaling $37.1 billion. Local TV is second followed by the online/interactive segment which analysts estimate will take $18.6 billion this year or an 11% share. Even as newspapers are projected to lose another $1 billion, the industry is still expected to rank fourth with $16 billion and an 11% share. That’s the same level of spending and share of the ad pie that BIA/Kelsey estimates local advertisers will spend on mobile platforms this year. “We’re on the precipice of different advertising channels taking lead positions in the local advertising marketplace,” Fratrik said. Although national and local businesses still utilize a mix of digital and traditional advertising, he thinks digital’s measurability and fast adoption by consumers makes it a strong competitor to traditional platforms. Looking further out into the future, BIA/Kelsey forecasts local ad revenue will grow at an average 3.8% during the next five years topping $174 billion in total spending by 2021. Fratrik predicts growth will be driven by double-digit increases in mobile and online spending. While spot sales are the bread and butter of sales rep’s existence, the companies that own the stations are diversifying how they make money. More companies are relying on retransmission consent fees—the money paid to stations by cable and satellite companies that carry their signal. BIA/Kelsey says stations received $6.8 billion in retransmission fees last year—or roughly six-times what digital sales brought in—and that figure is climbing. When retransmission revenue is factored in Fratrik estimates the local TV industry’s revenue this year will reach $28.08 billion. And it will keep growing the next few years (see the chart HERE). Fratrik says the fees now make up nearly one-third of some company’s revenue.

ADVERTISER NEWS Pepsico profit rose in the second quarter, although the gains came mostly from higher pricing which helped to offset weak demand. Beverage volume was down about 2% while Frito Lay and Quaker Foods volumes were generally flat. The Wall Street Journal suggests customers are now spending more time at the perimeter of stores looking at produce and fresh meats and less time in center aisles of stores where the company’s snacks and drinks are found……With the most of the restaurant industry suffering

through several quarters of soft results, deals to buy or sell chains are escalating. The Roark Capital Group has made a deal to buy Jim ‘N Nick’s Bar-B-Q, a chain of 37 units mostly in the Southeast. Roark owns many other restaurant brands including a couple of big ones: Arby’s and CKE Restaurants, the

operator of Carl’s Jr. and Hardees……And one private equity firm, Pharos Capital Group, is selling Back Yard Burgers to another equity firm, Axum Capital Partners. After a bankruptcy in 2012, there are currently only 55 units operating (at its peak there were about 180) but the deal with Axum is said to enable the chain to accelerate its growth……Already testing in seven markets, Amazon is creating its own version of Best Buy’s Geek Squad, which will be available for product installations in customers’ homes. Amazon has already been offering several handyman services using local third party people, but this service will be handled exclusively by in-house Amazon employees……Progressive Grocer reports the acquisition of Whole Foods Market by Amazon may have stalled the expansion of Whole Foods’ secondary 365 chain, at least in some markets. It adds there’s an expectation Amazon may be able to lower overhead at full-service Whole Foods markets, which could leave the future of the 365 concept in question……Abercrombie & Fitch, which had earlier reported it had been in “preliminary discussions with several parties,” has now withdrawn itself from being for sale after failing to find a buyer with acceptable terms. The company now says the best way for it to build value for its shareholders is “the rigorous execution of our business plan”……Although automotive sales have been down for every month so far this year, Automotive News says 2017 may yet turn out to be one of the best years ever for the industry, noting retail sales are in total down less than one percent and the slowdown has largely been caused by a reduction of less-profitable fleet deliveries. And the sales of high-margin light truck models are actually up 4.7% in the first half, likely to hit 11 million units after getting to 10 million last year for the first time.

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NETWORK NEWS NBC News has officially announced a start date for the much-anticipated debut of the weekday 9 AM (ET) morning program with Megyn Kelly. The program will feature the popular former Fox News anchor in front of a live studio audience and will be sandwiched between long-running hours of the network’s venerable Today program. A spokesperson for NBC News declined to respond when asked if Kelly’s show would include any reference to The Today Show. The new morning show, starting on 9/25, will compete directly in many markets with ABC’s syndicated Live! With Kelly and Ryan......Christina Hendricks (Mad Men) has been selected for the cast of the new NBC midseason drama series Good Girls. Hendricks replaces Kathleen Rose Perkins, who played the role in the pilot. Good Girls, from executive producer Jenna Bans, is described as a comedy-infused drama that mixes a little Thelma & Louise with a bit of Breaking Bad. Hendricks will share the lead with Retta and Mae Whitman……The iconic physical competition game show American Gladiators premiered this week for the first time in Spanish without subtitles. The show will air weekdays on TeleXitos, the Telemundo Station Group’s national multicast network, at 4 PM (ET). Viewers can watch a repeat of the week’s episodes back-to-back on Saturday nights at 9 PM (ET). The original series ran for seven seasons in syndication from 1989 to 1996 and featured amateur athletes competing against each other and against a line-up of athletes known as the American Gladiators……TV Line is reporting that Fox is considering a crossover between Empire and Star. The network is, “in talks to temporarily merge the universes of both series as part of a one-night premiere event on September 27th.” Empire is entering its fourth season on Fox while Star is about to begin its sophomore run. Both are from producer Lee Daniels and have music at the center. Meanwhile, executive producer Llene Chaiken teased in an interview with Deadline that the fifth season of Empire is a strong possibility if the planned “reset” of the series is a success……Universo announced this week the premiere of the second season of its original scripted series El Vato. The 13-episode dramedy follows the title character, played by El Dasa and his unconditional friends as they face challenges with humor along their journey to achieve the American dream. The second season premiere will air on Sunday, August 27th at 10 PM (ET).... Michael Jackson’s Halloween, a new one-hour animated adventure with Michael Jackson’s acclaimed music as its soundtrack, will be broadcast for the first time this fall on CBS. Created and produced by Optimum Productions, the Michael Jackson company now owned by his estate, the special will feature the voices of actors Christine Baranski, Kiersey Clemons, Alan Cumming, George Eads, Brad Garrett, Lucy Liu, Jim Parsons and Lucas Till.... Bill Smith, a longtime Los Angeles TV newsman who spent 13 years at KTLA after co-anchoring KTTV’s groundbreaking Metro News-Metro News years earlier, died this week at age 74.

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. CLICK HERE for 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 successful candidate 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

bbeer@wkow.com, No calls please. EOE. WPBF 25, the Hearst owned ABC Affiliate in the beautiful West Palm Beach market, has an incredible opportunity for you! WPBF 25 is looking for a dynamic sales superstar to join our phenomenal sales team. The ideal candidate will bring both Broadcast and Digital sales experience and will possess the drive and ability to thrive in a fast paced, highly competitive market. Your creativity, originality, and passion for developing new business will be encouraged and rewarded! CLICK HERE to apply. EOE Edward R. Murrow Award Winning Broadcaster WJZY/WMYT-TV, the FOX O&O in Charlotte, NC (Market #22) is seeking a Research & Programming Director. Among other duties, this position will analyze and evaluate all audience measurement systems and all ratings data for internal & external use; Prepare rating book breakouts; Create Qualitative profiles and positioning pieces for Sales, News and Programming. 4-year degree (B.A) preferred. Minimum 2 years’ related sales experience required. CLICK HERE for more info or to apply now. EOE/M/F/Veteran/Disabled.

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DONE DEALS Cox Communications announced that Karen Bennett will join the company as executive vice president and chief human resources officer. Bennett has served as senior vice president and chief human resources officer at Cox Media Group since 2015. Prior to joining Cox Media Group, she was senior vice president and chief human resources officer for YP (formerly AT&T Ad Solutions). Bennett also served as senior vice president of human resources for Turner Broadcasting Systems, Inc. for nearly 14 years.

7/12/2017

Conan O’Brien

ISIS is on the verge of total defeatin Iraq. You can tell ISIS is pretty much done, because they’ve already

been booked to appear on next season’s “Dancing

With the Stars.”

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

ECONOMIC NEWS Consumer credit rose by $18.4 billion in May, the largest increase in six months, according to new data from the Federal Reserve. The biggest jump was due to greater usage of credit cards, where the overall total rose by $7.4 billion, far above the $1.2 billion increase that had been built in April. The part of the data that includes auto loans and student debt rose by $11.05 billion, a little less than April’s increase. With consumer spending accounting for about 70% of the economy, the numbers were seen as a positive sign.

AT&T/TIME WARNER: “IN LIMBO” It’s now been eight months since AT&T announced a deal to buy Time Warner, and The New York Times reports antitrust staff members at the Department of Justice have been “doggedly investigating” the $85.4 billion dollar bid. But, the paper notes, the investigation is “marching into a great unknown,” partially because there is still no Assistant Attorney General in charge of antitrust matters as the President’s nominee Makan Delrahim has been held up in a logjam of nominees in the Senate. “The business community is watching intensely to see what an antitrust D.O.J. will look like in the Trump administration and how much the rhetoric from the campaign trickles down into policy,” one analyst told the Times. “People are looking at AT&T/Time Warner as the first indicator of what that will look like. Among the concerns of this particular combination of assets are fears that AT&T, already owner of DirecTV, could charge competitors such as Dish Network and cable operators (as well as Verizon’s FiOS) higher rates for Time Warner programming, and would those higher prices be passed on to customers.

MORE POLITICAL DOLLARS AHEAD Just two states - New Jersey and Virginia - will have governor races this year. The real battle will occur next year when 36 statehouses are up for grabs. A new analysis shows several races are tight, and that’s likely to mean one thing: more advertising dollars. The Cook Political Report says it has shifted races in Alaska, Connecticut, Illinois and Minnesota to toss-ups. If both Democrats and Republicans agree a win is within reach, but not a certainty, that’s likely to motivate both political parties to ramp up spending in those states. Of the governorships being defended by the Democrats, Cook Political Report says Connecticut and Minnesota are where they’re facing the strongest challenge by the GOP. The Republicans are working to hold onto more statehouses and Cook says they have more toss-up situations including races in Florida, Maine, Michigan and Nevada. Wells Fargo Securities media analyst Marci Ryvicker predicts 2018 political advertising is going to be “a very big deal,” telling clients in a note that although no executive at the recent S&P Global TV & Radio Finance Summit was willing to make a formal estimate, their body language was “extremely positive.”

BUSINESS BYTES This Week In Consumer Electronics says retailers see a busy fourth quarter ahead with new televisions and connected home devices likely to be the sales leaders later this year. Bricks-and-mortars stores are seen as critical for sales in the connected home area because of the help customers may need to understand how the various devices can be combined to work together. Voice-command products such as Amazon’s Echo (Alexa) are also predicted to be big sellers. Many retailers in the CE space also expect the importance of Black Friday

to continue to diminish, with much of that former crowd of shoppers now looking for deals earlier in the month of November or waiting until Cyber Monday for their bargains. Here’s another problem for traditional department stores: The Wall Street Journal reports in order to get customers into their stores, they have had to start discounting the one item they have always been able to sell at full price: cosmetics. With beauty specialty

stores (such as Ulta) now having passed department stores in share of makeup sales, stores such as Lord & Taylor have started to discount, offering 15% off on almost all cosmetics and fragrances last month, while Bloomingdale’s was offering a $25 reward card to loyalty members for each $100 spent on beauty products. The battle is likely to continue. Takata is expanding its recall to include another 2.7 million air bag inflators in the U.S. that may be prone to rupturing, the National Highway Traffic Safety Administration announced Tuesday. Takata’s nitrate-based air bags, which don’t use the chemical additive, have been under recall since they were linked to multiple fatalities and injuries, leading to the largest auto recall in history. About 68 million Takata inflators are already scheduled to be recalled through 2019.

7/12/2017

FunnyTweeter.com

Had a little meltdown at work yesterday, so the upside is that everyone will be afraid

to talk to me for awhile

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