3
www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2019. The Daily News of TV Sales Friday, January 3, 2020 SMI: UPFRONT ACCOUNTS FOR LESS THAN HALF Advertising spending on linear television fell 5 percent to $44.2 billion during the 2018-19 television year, according to a new report from Standard Media Index. In its review of the last broadcast year, SMI noted that the upfront accounted for just 49 percent of linear ad spending, dropping below 50 percent for the first time. Upfront spending at the 2018-19 upfronts was $21.5 billion. In its report, SMI looked at two-year compounded annual growth rates to even out the effects of the Olympics on TV spending. Broadcast Prime (excluding sports) was the largest segment at $7.2 billion, but was down 3.4 percent on a two-year CAGR basis. The cable entertainment networks maintained their market position with a marginal two-year CAGR decline of 0.7 percent. Their total day non-sports ad revenue was $11.7 billion. The newly combined ViacomCBS has the largest share of the linear ad market in 2018-19 with 20.1 percent of spending. ViacomCBS has the largest share of spending on entertainment programming (20.8%) and the largest share among kids (75.3%). Comcast’s NBCUniversal was No. 2, with an 18.4 percent share. NBCU is tops in the news segments with a 32.2 percent share of spending. Disney was third with a 16.2 percent share overall and a league-leading 29.9 share in sports. SMI said the top three media companies control a 55 percent share of linear ad spending. Discovery had a 10.5 percent share of ad spending, followed by AT&T with 9.2 percent, Fox with 8.9 percent, A+E Networks with 3.8 percent, Univision with 2.7 percent, AMC Networks with 2.4 percent, Crown Family Media Networks 1.7 percent and ION with 1.4 percent. Among individual networks, NBC was No. 1 in broadcast ad revenue, but was down 1.4 percent from the previous year. NBC was followed by ABC, down 3.5 percent. CBS was down 1.7 percent and Fox was down 6.3 percent. The CW showed a 3.4 percent increase. With the size of the audience shrinking, the average price of a primetime commercial dipped to $68,900 from $73,000 during first-run comedy, drama and reality shows. In sports, the most expensive commercials were for NFL football. Across all networks carrying the NFL, spots averaged $543,000. Commercials in Major League Baseball games on Fox averaged $292,000, spots in NBA games on ABC averaged $190,000, MLB on ESPN averaged $109,000, NBA spots on TNT averaged $77,000, MLB spots on TBS averaged $72,000, MLB spots on FS1 averaged $48,000, NBA spots on ESPN averaged $46,000 and NHL game spots on NBC averaged $46,000. Comparing 2018-19 to 2016-17 to eliminate the effects of (Continued on Page 3) REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 ADVERTISER NEWS Walmart-owned Sam’s Club’s innovation lab store in Dallas, Sam’s Club Now, has had a successful first year, the company says. Since it opened, The Dallas Morning News reports, the store and innovation hub’s team created the Ask Sam platform to make stores more efficient, added a “find your receipt here” button to the retailer’s app based on customer feedback and started work on Item Vision technology, which allows customers to add bulky items to a digital shopping cart without a barcode... The owners of Toms Shoes have agreed to transfer ownership of the company over to creditors, according to a letter that the CEO Jim Alling sent to staff. He told employees the company’s current owners, Bain Capital and founder Blake Mycoskie, made a deal with investors led by Jefferies Financial Group, Nexus Capital Management and Brookfield Asset Management meant to “to identify the best path forward for our company.” Reuters says Toms would not have been able to pay back a $300 million loan due in 2020 had it not made a deal with creditors... The convenience store industry is feeling bullish about 2020 but remains mindful of potential issues that could impact its performance, Chain Store Age reports. The majority of convenience retailers said their sales increased in 2019, according a survey by trade association NACS. Three in four retailers (74%) said in- store sales increased last year. Strong industry sales in 2019 pushed retailer optimism to record-high levels. At the same time, retailers identified some the top concerns that could affect their businesses in 2020, with regulations and legislation (60%), labor issues (58%) and competition from other convenience stores (50%) heading the list... Amazon has filed a patent application for technology that would allow stores to identify customers by the the palms of their hands, Vox/Recode reports. In the future, technology could allow shoppers at Amazon Go stores to scan their hands instead of an app to pay for their purchases... Barneys New York has ended online clearance sales on Barneys.com and Barneyswarehouse.com and will send remaining merchandise to brick-and-mortar stores that are slated to close in the coming weeks, Bloomberg reports. Barneys’ new owner, Authentic Brands Group, plans to open branded shops in about 40 Saks Fifth Avenue stores, and visitors to the Barneys sites are now redirected to Saks sites... Volkswagen said goodbye to the Beetle at the 11th hour of 2019, Ad Age reports. A nostalgia-laden animated ad called The Last Mile got a significant push during New Year’s Eve TV programming, with airings on ABC and CNN. The spot, by Johannes Leonardo, depicts the iconic car’s role in the life of a man who is shown growing old with the Beetle, which ended production earlier this year after a run that began in the 1930s. Along the way, the ad works in references to the Beetle’s outsized role in pop culture.

REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 · 2020-01-03 · with Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest. The traditional two-part New Years Eve celebration’

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Page 1: REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 · 2020-01-03 · with Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest. The traditional two-part New Years Eve celebration’

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2019.The Daily News of TV Sales Friday, January 3, 2020

SMI: UPFRONT ACCOUNTS FOR LESS THAN HALF Advertising spending on linear television fell 5 percent to $44.2 billion during the 2018-19 television year, according to a new report from Standard Media Index. In its review of the last broadcast year, SMI noted that the upfront accounted for just 49 percent of linear ad spending, dropping below 50 percent for the first time. Upfront spending at the 2018-19 upfronts was $21.5 billion. In its report, SMI looked at two-year compounded annual growth rates to even out the effects of the Olympics on TV spending. Broadcast Prime (excluding sports) was the largest segment at $7.2 billion, but was down 3.4 percent on a two-year CAGR basis. The cable entertainment networks maintained their market position with a marginal two-year CAGR decline of 0.7 percent. Their total day non-sports ad revenue was $11.7 billion. The newly combined ViacomCBS has the largest share of the linear ad market in 2018-19 with 20.1 percent of spending. ViacomCBS has the largest share of spending on entertainment programming (20.8%) and the largest share among kids (75.3%). Comcast’s NBCUniversal was No. 2, with an 18.4 percent share. NBCU is tops in the news segments with a 32.2 percent share of spending. Disney was third with a 16.2 percent share overall and a league-leading 29.9 share in sports. SMI said the top three media companies control a 55 percent share of linear ad spending. Discovery had a 10.5 percent share of ad spending, followed by AT&T with 9.2 percent, Fox with 8.9 percent, A+E Networks with 3.8 percent, Univision with 2.7 percent, AMC Networks with 2.4 percent, Crown Family Media Networks 1.7 percent and ION with 1.4 percent. Among individual networks, NBC was No. 1 in broadcast ad revenue, but was down 1.4 percent from the previous year. NBC was followed by ABC, down 3.5 percent. CBS was down 1.7 percent and Fox was down 6.3 percent. The CW showed a 3.4 percent increase. With the size of the audience shrinking, the average price of a primetime commercial dipped to $68,900 from $73,000 during first-run comedy, drama and reality shows. In sports, the most expensive commercials were for NFL football. Across all networks carrying the NFL, spots averaged $543,000. Commercials in Major League Baseball games on Fox averaged $292,000, spots in NBA games on ABC averaged $190,000, MLB on ESPN averaged $109,000, NBA spots on TNT averaged $77,000, MLB spots on TBS averaged $72,000, MLB spots on FS1 averaged $48,000, NBA spots on ESPN averaged $46,000 and NHL game spots on NBC averaged $46,000. Comparing 2018-19 to 2016-17 to eliminate the effects of

(Continued on Page 3)

REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 ADVERTISER NEWS Walmart-owned Sam’s Club’s innovation lab store in Dallas, Sam’s Club Now, has had a successful first year, the company says. Since it opened, The Dallas Morning News reports, the store and innovation hub’s team created the Ask Sam platform to make stores more efficient, added a “find your receipt here” button to the retailer’s app based on customer feedback and started work on Item Vision

technology, which allows customers to add bulky items to a digital shopping cart without a barcode... The owners of Toms Shoes have agreed to transfer ownership of the company over to creditors, according to a letter that the CEO Jim Alling sent to staff. He told

employees the company’s current owners, Bain Capital and founder Blake Mycoskie, made a deal with investors led by Jefferies Financial Group, Nexus Capital Management and Brookfield Asset Management meant to “to identify the best path forward for our company.” Reuters says Toms would not have been able to pay back a $300 million loan due in 2020 had it not made a deal with creditors... The convenience store industry is feeling bullish about 2020 but remains mindful of potential issues that could impact its performance, Chain Store Age reports. The majority of convenience retailers said their sales increased in 2019, according a survey by trade association NACS. Three in four retailers (74%) said in-store sales increased last year. Strong industry sales in 2019 pushed retailer optimism to record-high levels. At the same time, retailers identified some the top concerns that could affect their businesses in 2020, with regulations and legislation (60%), labor issues (58%) and competition from other convenience stores (50%) heading the list... Amazon has filed a patent application for technology that would allow stores to identify customers by the the palms of their hands, Vox/Recode reports. In the future, technology could allow shoppers at Amazon Go stores to scan their hands instead of an app to pay for their purchases... Barneys New York has ended online clearance sales on Barneys.com and Barneyswarehouse.com and will send remaining merchandise to brick-and-mortar stores that are slated to close in the coming weeks, Bloomberg reports. Barneys’ new owner, Authentic Brands Group, plans to open branded shops in about 40 Saks Fifth Avenue stores, and visitors to the Barneys sites are now redirected to Saks sites... Volkswagen said goodbye to the Beetle at the 11th hour of 2019, Ad Age reports. A nostalgia-laden animated ad called The Last Mile got a significant push during New Year’s Eve TV programming, with airings on ABC and CNN. The spot, by Johannes Leonardo, depicts the iconic car’s role in the life of a man who is shown growing old with the Beetle, which ended production earlier this year after a run that began in the 1930s. Along the way, the ad works in references to the Beetle’s outsized role in pop culture.

Page 2: REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 · 2020-01-03 · with Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest. The traditional two-part New Years Eve celebration’

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

AVAILS NPG of Oregon Inc., with an NBC and FOX affiliate in Bend, Ore., is currently looking for a General Manager to be responsible for leading the efforts in providing high-quality and financially viable television programming in a multi-affiliate operation. Experience as a General Manager is required, and a sales background and a college degree is preferred. Please CLICK HERE for more info or to apply. Please include a cover letter with your resume when applying. EOE. Sinclair Broadcast Group is seeking a Regional National Sales Manager, Las Vegas. This role encompasses national

revenue management for our stations and digital platforms. The ideal candidate will have a keen attention to detail, be highly organized and demonstrate a proven ability to impact market share and revenue growth, and will demonstrate a strong work ethic, a highly competitive passion to win, and a proven ability to create revenue opportunities on both linear and digital platforms. CLICK HERE to apply. EOE. General Sales Manager: KAKE, the

ABC affiliate in Wichita, Kan., seeks an energetic leader to inspire and guide an experienced sales team into 2020 and beyond. The successful applicant will possess a strong track record of revenue generation through digital marketing solutions, understand the value of our various media platforms and how they complement each other, and be able to effectively communicate that value to our sellers and advertising partners. Minimum of 5 years’ experience in Broadcast TV sales management required. Resume to: [email protected]. No calls, please. EOE. FOX5 Atlanta has an opening for a Research Director. This position will track ratings for all stations; develop promotional materials, qualitative profiles and positioning pieces for sales staff; create rating estimates for local and national sales teams; and maintain Nielsen station information and remain current with Nielsen-related issues. More duties can be found in our ad online. Candidate must have knowledge of various products, including Wide Orbit Media Sales and Nielsen Arianna. Candidate should possess excellent communication and computer skills. CLICK HERE to apply. EOE.

See your ad here Monday! CLICK HERE for details.

AT&T TV APP ENDS SUPPORT FOR ROKU DEVICES AT&T has told customers that the AT&T TV app is no longer available on Roku devices, effectively ending app support for virtual MVPD AT&T Now on the top OTT device ecosystem. According to an AT&T customer support page, reported by Cord Cutter News, the app became unavailable on Roku boxes, streaming sticks and enabled smart TVs Wednesday. “Already have AT&T TV on your Roku device? You can keep using it as long as you don’t delete the app. We’re actively working on a new agreement with Roku and hope to resolve this soon,” the support page said. AT&T TV supports AT&T Now, the vMVPD that AT&T is quietly shoving aside to make room for the confusingly monikered AT&T TV, the live-streamed version of AT&T’s premium pay-TV service.

NETWORK NEWS ABC conquered Tuesday night’s ratings by ringing in 2020 with Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest. The traditional two-part New Year’s Eve celebration won all six half-hours of primetime. Part 1 earned a 1.9 in the adults 18-49 demo with 7.29 million viewers. The second part skyrocketed to a 3.2 rating as 10.73 million viewers counted down the final minutes of 2019. Despite being down from last year, the ABC New Year’s Eve primetime lineup earned a 2.4 rating and 8.4 million viewers. New Year’s Rockin’ Eve was easily Tuesday’s No. 1 program in primetime and marked ABC’s strongest Tuesday in total viewers and ratings in the demo in nearly two years. ABC left other New Year’s Eve network festivities in the dust. NBC’s New Year’s Eve primetime slate included A Toast to 2019! (1.0, 4.38M), a lead-in to its New Year’s Eve Special 2020 (1.4, 5.31M). Both took a hit from 2018. Meanwhile, Fox’s 2020 celebration delivered numbers on the lower end, with New Year’s Eve With Steve Harvey: Live From Times Square (0.8, 2.80M), down a tenth from last year... Carrie Underwood has decided to step away from hosting the CMA Awards, the singer announced on social media. After hosting for 12 years, Underwood said on Instagram, “it’s time to pass the hosting torch.” During her time with the show, she most often emceed with Brad Paisley. This past November, however, she hosted with Reba McEntire and Dolly Parton as part of a celebration of female artists. The event has aired on ABC since 2006... Sports Business Daily reports that CBS is ending its association with Southeastern Conference (SEC) football after its contact expires following the 2023 season. The late Saturday afternoon package has been the most-watched college football telecast, on average, per week for the past decade. CBS Sports had allegedly submitted a bid for $300 million per season — more than five times its current $55 million/season rate. However, it is rumored that ESPN/ABC is bidding well above the $300 million amount, causing CBS to exit negotiations. Fox Sports is also said to be planning to bid for the SEC... Jack Sheldon, the standout jazz trumpeter and affable Merv Griffin sidekick whose gave voice to the Schoolhouse Rock classics “I’m Just a Bill” and “Conjunction Junction,” has died. Sheldon’s face and name were most recognizable to fans of The Merv Griffin Show, thanks to his 16-year sidekick stint. Jack Sheldon was 88 years old.

NEXSTAR, TEGNA REACH DEALS WITH COMCAST Nexstar Media and Tegna have reached new retransmission agreements with cable giant Comcast, averting potential blackouts. Nexstar also reached a retrans and carriage agreement with Charter Communications, Broadcasting & Cable reports. Tegna also said it reached terms on an agreement with Suddenlink, whose retrans pact with the broadcaster was set to expire Tuesday night. Financial terms weren’t available. Neither Comcast nor the station groups have made formal announcements. Nexstar also agreed to a new retrans deal with Frontier Communications.

1/3/2020

Conan O’Brien

I’m the voice of the people. Sorry, people.

Page 3: REPORT: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 · 2020-01-03 · with Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest. The traditional two-part New Years Eve celebration’

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

FOX REACHES CARRIAGE DEAL WITH NCTC Fox has reached a new carriage agreement with the National Cable Television Cooperative, averting a New Year’s blackout, Broadcasting & Cable reports. The NCTC represents more than 700 small and rural cable operators covering about 3 million subscribers. The deal covers the Fox-owned broadcast stations, Fox News Channel, Fox Business Network, FS1, FS2, Fox Deportes and Fox Soccer Plus. Financial terms were not disclosed. As the pact was set to expire earlier this week, NCTC said Fox had been seeking “outrageous” price hikes aimed at

taking advantage of its members’ largely rural customers. It said the increase Fox was seeking was about 10 times the current rate of inflation and that Fox was negotiating in bad faith by trying to negotiate directly with its members.

THIS AND THAT Consumers living in or visiting Illinois are now able to purchase marijuana legally for recreational purposes at designated locations. Illinois joins

Michigan as the only two midwestern states to legalize cannabis. Michigan ended its ban in 2018... David Stern, the former commissioner of the NBA who helped fuel the sport’s popularity on television and beyond, has died after suffering a brain hemorrhage about three weeks ago. He was 77 years old.

SMI: LINEAR TV AD SPENDING DOWN 5% IN 2018-19 (Continued from Page 1)the February 2018 Olympics, HGTV generated the highest revenue among cable entertainment networks and was flat. TBS, which had been No. 1 in 2016-17, was down 3.8 percent. Among the other top 10 cable entertainment networks in terms of ad revenue, Hallmark was up 13 percent, Ion was up 8.8 percent and Bravo was up 2.3 percent. AMC was down 7.2 percent and Discovery and USA were down 5.8 percent.

1/3/2020

FunnyTweeter.com

My New Year’s resolution was to lose weight. Was going good until I woke

up this morning.

WEDNESDAY NIELSEN RATINGS - LIVE + SAME DAY

TV TIME-SHIFTED VIEWING STEADY IN 2019-20 Although time-shifted viewing for traditional TV networks continues to show slight growth for the current TV season, viewing for the average primetime non-sports show among the five major broadcast networks has declined, Television News Daily reports. Analyzing 98 entertainment/news/unscripted show listings, the average total viewership of an individual primetime series has dropped 14 percent to 5.6 million (from 6.5 million a year ago), looking at Nielsen’s live program-plus-seven days (L7) of time-shifted data from Sept. 23 though Dec. 8. Fewer primetime shows are topping the 10 million mark this season: 13 network shows for the fourth quarter this year, looking at Nielsen’s L7 metric, versus 24 shows a year ago. The top three non-sports primetime shows, looking at Nielsen’s L7 metric this year, are: CBS’s NCIS (15.3 million), CBS’s FBI (12.2 million) and NBC’s This Is Us (11.9 million). On average, all TV network shows (scripted and unscripted) grew in terms of total viewer audience at 47 percent (averaging 1.7 million viewers, 98 shows) in Nielsen L7, using its live program-same day measure. Compared to the same period a year ago, percentage gains through seven days were at 45 percent (1.9 million, 98 shows). By way of comparison, only two network shows this year, NCIS and 60 Minutes, posted more than 10 million viewers, with 11.4 million and 10.5 million, respectively, when analyzing Nielsen live program-plus same-day time-shifted viewing.

LRG: 85% OF U.S. HOMES GET INTERNET SERVICE New consumer research from Leichtman Research Group found that 85 percent of U.S. households get an Internet service at home, compared with 84 percent in 2014 and 80 percent0 in 2009. Broadband accounts for 96 percent of households with an Internet service at home, and 82 percent of all households get a broadband Internet service — an increase from 79 percent in 2014 and 71 percent in 2009. In addition, 81 percent of adults access the Internet on a smartphone (and an additional 1 percent access the Internet on another type of mobile phone), up from 63 percent in 2014. Overall, 75 percent of households now get Internet service both at home and on a mobile phone, an increase from 59 percent in 2014. “This year’s study demonstrates a growing reliance on broadband Internet services in the home, with an increase in the time spent online at home, including the frequency of watching Internet-delivered video,” analyst Bruce Leichtman said in a statement, which was reported by Media Play News. “It is most common for home Internet service to be complemented by Internet service on a mobile phone. Three-quarters of households now get Internet service both at home and on a mobile phone, while the segment opting to solely access the Internet on a mobile phone has plateaued.” The findings are based on a telephone survey of 1,121 households from throughout the U.S. This is LRG’s 17th annual study on the topic.