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The Daily News of TV Sales Thursday, January 26, 2017

MORE BROADBAND HOMES DROP PAY-TV New cord-cutter research from Parks Associates shows the percentage of U.S. broadband households that use only antennas to receive TV has steadily increased since 2013 to reach 15%. The figure was less than 9% in Q2 of 2013. This increase coincides with a drop in pay-TV subscriptions and an increase in Internet-only video subscriptions. “Pay-TV subscriptions have dropped each year since 2014, falling to 81% of U.S. broadband households in Q3 2016,” said Brett Sappington, Senior Director of Research, Parks Associates. “Several factors have played a part in this decline, including growth in the OTT video market, increasing costs for pay-TV services, and consumer awareness of available online alternatives.” Parks Associates also noted declining pay-TV satisfaction in each of the last three years. Only one-third of pay-TV subscribers are very satisfied with their pay-TV service. Meanwhile, 63% of U.S. broadband households subscribe to at least one OTT service. 31% have multiple subs. According to Parks Associates’ 360 View report, in 2016, twice as many subscribers downgraded (12%) their pay-TV service than upgraded (6%) it. The likelihood of non-subscribers adopting pay TV has declined since 2012. Only one-half as many Cord Nevers (adults who have never subscribed to an MVPD) adopted pay TV in 2016 (2%) as in 2015 (4%). “2017 will be characterized by the rise of online pay-TV services,” Sappington said. “While traditional pay TV provides superior viewing quality, OTT video commonly excels in discovery, portability, and personalized user experiences.” Here’s the important quote he offers: “Consumers care less about the network used to deliver the content than they do about access to the content, ease of use, and convenience.” Additional research shows that: In 2016, twice as many subscribers downgraded (12%) their pay-TV service than upgraded (6%) it. The likelihood of non-subscribers adopting pay TV has declined since 2012. Only one-half as many Cord Nevers adopted pay TV in 2016 (2%) as in 2015 (4%). And the size of the Cord Never segment is slowly increasing. “Pay-TV providers are adapting to address a fundamentally different video services market than existed three years ago. Challenges still remain for consumers in aggregating and discovering their favorite content and being able to watch (it) on their preferred screen. Live broadcasts of high-profile events remain a challenge for online delivery, though pay-TV and broadcast TV conquered live distribution long ago,” Sappington said.

ADVERTISER NEWS The proposed merger of Walgreens and Rite Aid was first announced in October, 2015, with a deadline for the deal to be completed within fifteen months, then considered to be more than enough time to get the deal done. That deadline now is tomorrow, January 27. With a decision from the government still apparently up in the air, reports say the two companies do not expect to terminate

the deal, still expecting eventual approval including the sale of over 800 stores to Fred’s……Behind this week’s soft quarterly numbers from McDonald’s, the problem is clear—its customer counts have been weak, even a year ago when the introduction of all-day breakfast gave sales a boost. Nation’s Restaurant News reports Mickey D’s customer counts were down 1.6% in 2013, down another 4.1% in 2014, off by 3.0% the following year and down another 2.1% last

year……In a one-day promotion, McDonald’s is giving away 10,000 bottles of Big Mac Special Sauce today, part of its current emphasis on that signature sandwich as it introduces bigger and smaller options this month……After pressure from activist shareholders, Bob Evans Farms Inc. will stay in the packaged foods business, but will sell off the Bob Evans Restaurants operation to Golden Gate Capital. The family dining chain, currently around 523 units, reported negative same-store sales of -1.8% in the latest quarter through October, 2016. Golden Gate has about $15 billion in investments including Red Lobster and California Pizza Kitchen in the restaurant sector……Still in the restaurant business, one Wall Street analyst expects Applebee’s is doing the worst of the 25 largest restaurant chains in the country with an expected 5.5% same-store drop for its sixth consecutive quarter of negatives. The highly-anticipated addition of wood-fired grills has been a flop, and the CEO of Applebee’s New York franchisee said “It was a huge expense and it has not been the paradigm shift it was expected to be” …(continued on page three)

ANTENNA-ONLY TV VIEWING ON THE RISE

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

NETWORK NEWS The Middle, one of the most consistent performers for ABC, has been given a ninth season renewal by the network. The series typically delivers a 1.7 18-49 Nielsen rating and adds 50% or more when DVR viewing within three days is factored in. The Middle also serves as a strong lead-in for ABC’s freshman comedy, American Housewife……NBC has given a pilot order to a TV reboot of the feature film What About Bob. The movie starred Richard Dreyfuss as an egotistical psychotherapist, and Bill Murray as his most overbearing patient. In the TV adaptation, the psychotherapist will be female. What About Bob will be written by Joe Port and will be produced at ABC Studios……The Get, a new hour-long drama from writer and executive producer Bridget Carpenter, has been given a pilot order from CBS. The project is about a team of tireless Internet journalist pursuing and exposing injustices using their unconventional investigative techniques. Carpenter served as showrunner for the Hulu time-travel series, 11.22.63. She also worked on NBC’s Parenthood and Friday Night Lights……Fox is moving ahead with a cast-contingent pilot order for a new comedy from Geoff Barbanell and Itai Grunfeld. Linda From HR is described as a single-camera comedy focusing on the title character……Fox also ordered a pilot for a new untitled X-Men action-adventure project. The series will revolve around a married couple that discover their children have mutant powers. Forced to go on the run, the family joins up with an underground network of mutants and must fight to survive. Bryan Singer will direct the pilot as well as serve as co-executive producer……A pilot for a new game show called 5 Gold Rings has been picked up at NBC. The series is based on a U.K. format where players on an interactive LED floor answer questions over five levels. Viewers of the program will be able to connect to the game via smartphone and play along on a mini-version of the competition. The series is produced by ITV Entertainment……Madam Secretary co-star Tim Daly suffered two broken legs in a skiing accident this week while he was vacationing at Sundance. He’s expected to take six to eight weeks to fully recover, but the third season of the CBS show continues shooting. Producers are looking at writing Daly’s injury into the plot or shooting around him. A source close to the production said that the show may be far enough along in its shooting schedule that few changes would be needed. Daly plays the husband of theSecretary of State, played by Tia Leoni.

ECONOMIC NEWS Sales of existing homes were down in December, but rather than low demand it appears to be more of a case of historically low supplies of available houses. The National Association of Realtors said the seasonally-adjusted sales rate slipped from 5.65 million to 5.49 million, while the supply of homes on the market was down 10.8% to 1.65 million, the lowest on record going back to 1999. That of course results in higher prices, and combining the low supply, higher pricing, and a somewhat increased mortgage rate, sales were down.

1/26/2017

The Oscar nominations came out today and the movie “La

La Land” got 14 nominations. However, that’s only because 3 to 5 million undocumented immigrants voted illegally.

Conan O’Brien

AVAILS The Networks of Mid-Missouri is seeking a highly motivated, competitive professional to lead its KQFX (FOX) and NMIZ (MyNetwork) team as Local Sales Manager. The LSM will implement the company’s plan to cultivate new local business, grow long lasting relationships with clients and shape a productive sales team through training and management. The position leads the revenue generating effort of the company through selling television air time, internet and special events. Cover letter and resume to: donnaf@kmiz.com. Tell us where you saw this ad! EOE.

KBZK seeks a full-time Senior Account Executive in “The Gem of Big Sky Country”, Bozeman, Montana. Work and play in the fastest-growing communities in the scenic Rocky Mountains, bustling with activities for all seasons. Winter brings powder to the peaks at Bridger Bowl Ski Area and nearby Big Sky Ski Resort, while the spring brings high waters and thrilling rafting on the Gallatin River. Summer is splendid for backpacking the Gallatin

Divide, and fall colors bring nearby Yellowstone Park to life. Resumes to jstrong@kbzk.com. No calls please. EOE. Nexstar Media Group is looking for a National Sales Manager with passion and drive to lead our Memphis, TN. station’s national TV sales efforts. The NSM will work closely with the DOS to ensure that top line goals are being met while increasing billing, maximizing share of business, and strengthening client relationships in conjunction with our National sales teams across the country. Minimum of 2-4 years in sales management or 5+ years in media sales required. CLICK HERE for more details or to apply now. Winter is here! If you would prefer to be selling where summer never ends, WPBF 25, the Hearst owned ABC Affiliate in sunny West Palm Beach has an opportunity for you! WPBF 25 is looking for a dynamic sales superstar to join our fantastic sales team. The ideal candidate must have Broadcast TV sales experience and possess the drive and ability to thrive on multiple platforms in a fast paced, highly competitive market. Your creativity, originality, and passion for developing New Business will be encouraged and rewarded! CLICK HERE CLICK HERE to apply. EOE.

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ADVERTISER NEWS (continued from page one)....Upscale eyewear retailer Warby Parker is getting serious about bricks-and-mortar locations. It expects to open about 25 stores this year to get to about 70 by the end of the year. “I don’t think retail is dead. Mediocre retail experiences are dead,” the chain’s CEO said……PepsiCo will increase exposure for the premium-priced water segment, giving LIFEWTR one of the company’s Super Bowl spots, amid estimates that annual sales of bottled water exceeded sales of soda for the first time in 2016. Pepsi already has a lower-priced brand, Aquafina, which is number two in the category. LIFEWTR goes into national distribution this month, priced around $2.70 for a 1-liter bottle.

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

MAGNA: OTT AD DEAL WITH ROKU Magna, the “intelligence, investment and innovation unit” of IPG Mediabrands, announced what it says is an industry-first strategic partnership with Roku to deliver targeted advertising to OTT audiences. The announcement says IPG Mediabrands clients will gain accelerated access to the advanced advertising capabilities of the Roku platform, including precision targeting, programmatic workflows, interactivity, and audience measurement. Magna says the latest deal with Roku “further cements” its video diversification efforts. During the 2016 Upfronts, Magna secured the largest ever Google Preferred deal and shifted a portion of clients’ TV advertising spend to YouTube. “Partnering with Roku builds on these efforts, enabling Magna clients to reach viewers who have shifted their TV consumption to OTT,” said the agency. Magna clients already active with Roku include BMW, Coca-Cola, The Hershey Company, MillerCoors, JetBlue, Dunkin Donuts, Charles Schwab, IHOP, Sony Pictures Entertainment and Office Depot. The announcement notes that Roku is the only OTT platform currently supporting Nielsen’s Digital Ad Rating (DAR) measurement. In an industry-first move, all IPG Mediabrands campaigns will be DAR measured, “with the goal of bridging the gap between TV and OTT advertising.”

TRUMP GREAT FOR CABLE NEWS Standard Media Index reports the three major cable news networks took in $394 million in additional ad revenue last year as the contentious election news rolled on. Fox News Channel, largest of the cable news nets, is reported to have seen a 26% increase in revenue to $621 million, and finished the year as the most-watched cable network, surpassing ESPN. CNN is said to have taken in $536 million, up 58%, and finished the year in tenth place among all cable nets with total viewers up 77%. And MSNBC’s ad revenue grew by 48% to $219 million, rising 87% in viewership to become number twelve for the year. Will it continue? Probably not to this extent, but Billie Gold of Dentsu’s Amplifi says, “While the election is over and ratings will die down a bit, cable news will still benefit from inflated ratings as friends and foes alike put Trump under a microscope and banter both sides of the fence.”

MARKETRON PARTNERS WITH BCCA Under a newly announced partnership, Marketron customers will have the opportunity to share real-time credit information about industry advertisers with members of BCCA, the media industry’s credit association. This new integration eliminates the manual process of reporting on aging information to BCCA’s data warehouse. Marketron says its customers will have a choice to opt-in to an automated transfer of real-time, factual credit Information into the Media Whys report, alongside collection filings, tax liens, judgments, corporate linkage, payment trends, and trade data. There is no fee for media companies to participate.

AVAILS KOKI-TV FOX23, KMYT-TV My 41 Tulsa, and NOKI- MeTV Cox Media Group stations in Tulsa, OK, seek an energetic and innovative General Sales Manager to lead our team in the world of convergence selling. Our GSM will oversee broadcast sales efforts as well as website, mobile, and digital channels at a time when our business is growing and our ratings continue to increase. Minimum of five (5) years media sales experience and three (3) years in media sales management experience. CLICK HERE for more info

or to apply. EOE. KSAZ/KUTP TV in Phoenix are searching for a Local Sales Manager. Duties include sale of ad time and digital assets to local/regional clients-agencies. Assist the training, development and motivation of a local sales team. Candidate must be detailed oriented, resourceful, team player, reliable and a self-starter. College degree and 3-5 years major market broadcast sales experience required.Competitive comp and excellent benefits! Qualified candidates should

submit their resume, salary requirements and cover via the on-line application at www.Fox10Phoenix.com. EOE. Capitol Broadcasting Company in Raleigh, NC seeks a New Media Digital Project Manager. This person will assist in digital marketing customer fulfillment by providing support to local clients. Agency experience desired; video production skills a plus. Daily tasks include managing reputation and social media campaigns, updating status reports for clients, receiving creative changes from clients, and training clients on interface functionality. CLICK HERE to apply (job 1448). All Capitol Broadcasting Company properties are tobacco free. CBC participates in E-Verify. EOE M/F

1/26/2017

Conan O’Brien

TUESDAY NIELSEN RATINGS - LIVE + SAME DAY

Engineers have begun trying to find a way to brew beer on the moon. Which means we’ll soon have astronauts calling into Mission Control saying,

“Houston, we have a drinking problem.”