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 2018. The Daily News of TV Sales Friday, March 9, 2018 STREAMING TV SUBSCRIBERS ARE ADDING UP CABLE TV STILL LIVE TV GO-TO FOR NETFLIX SUBSCRIBERS The number of subscribers to an online video service grew 2.6 million during the past year and nearly 800,000 during the fourth quarter of 2017. That’s according to the Wall Street research firm MoffettNathanson which calculates 4.6 million Americans are now opening their wallets for products like YouTube TV, Hulu Live, and Dish’s Sling TV. “Since early 2010 we estimate that the cumulative number of cord-cutters and cord-never households has reached roughly 13.5 million,” the firm writes in a new report. But it points out that video services have only recaptured about a third of those households. That, MoffettNathanson concedes, has made it pretty tough on forecasters trying to figure out just how big a phenomenon it’ll become. What’s more certain is the gap between cable and satellite television businesses is “widening” with trend lines for cable TV subscriptions “softening” while satellite trends are “awful.” For broadcast TV watching all this play out the news isn’t nearly so bad. Sling TV has more subscribers than any other with 2.2 million paying customers at the end of Q4. It offers local TV stations. It’s the same story for local TV stations on No. 2 DirecTV Now (1.1 million subscribers), No. 3 Playstation Vue (550K subs), No. 4 Hulu Live (450K subs) and No. 5 YouTube TV (300K subs)—all of which offer local stations. Meantime new research shows cable television remains the way most Nextflix subscribers tune-in to live television programming. Nearly half (48%) of those surveyed by CivicScience said that’s the way they view traditional TV shows. Satellite TV is how 18% said they watch live TV while 6% said they use an old-fashioned antenna to get their local stations. That’s nearly as much as the 5% who reported they now watch live TV through an online streaming service. Perhaps most troubling for broadcasters is nearly one-in-five (18%) of Netflix subscribers claimed they no longer watch live television programming at all. One reason could be that 46% of Netflix-only subscribers are using the platform a few times a week. CivicScience says “that’s a strong engagement rate for a service, especially considering how many Netflix-only subscribers still have cable.” It also points out that Netflix is winning the streaming battle. Its research shows that 55% of the general population subscribes to a streaming service, and of that group, 85% are Netflix subscribers. “In the streaming service game, it’s a battle for second place as Netflix holds a strong first,” CivicScience says. And when viewers also pay for rivals Amazon Prime Video or Hulu, the data shows people are engaging with it on a much less frequent basis. But it also shows they’re less lively to go to the movies once a month or more. ADVERTISER NEWS Toys R Us may soon liquidate its U.S. operations, sources told CNBC. In February, CNBC reported that the retailer was at risk of breaching the covenant on a $3.1 billion loan after a disappointing holiday season. Toys R Us’ sales, traffic and profit all fell far short of what it had told lenders to expect. The retailer filed for bankruptcy in September as it struggled with its $4.9 billion in debt....Nordstrom has announced two acquisitions that will help it keep pace with retail rivals online, even as the Nordstrom family continues to work on taking the department store private. Nordstrom said Thursday it bought BevyUp and MessageYes. The financial terms of the transactions weren’t disclosed. BevyUp is a platform that allows sales associates to communicate with each other on the back end, and encourages shoppers to share information with each other and browse items together online. MessageYes offers brands the opportunity to text their customers, leveraging artificial intelligence and integrated payments....Home Depot announced Thursday that it will donate $50 million to train 20,000 people as construction workers over the next decade, helping efforts to ease a dire shortage that’s curtailing home building and driving up house prices, says USAToday. The Home Builders Institute, the industry’s education arm, will use the money from the Home Depot Foundation to train veterans and U.S. Army soldiers who will soon be returning to civilian life, high school students and disadvantaged youth....Weight Watchers International is getting into the meal-kit business. The company will sell boxes that include fresh, pre-measured ingredients that you cook at home starting later this year. The news comes three days after Walmart announced plans to sell its own line of meal kits at 2,000 stores nationwide by the end of this year. Meal kits have grown in popularity as Americans increasingly look for the convenience of using pre-prepped meal ingredients. This $2.5 billion industry is expected to grow 20% annually, according to food industry consultant Pentallect....Kroger on Thursday reported Q4 earnings that were in line with analysts’ estimates. Net income for the fourth quarter totaled $854 million, compared with $506 million a year earlier. Revenue jumped 12.4 percent to $31 billion, slightly topping a forecast for $30.8 billion. The company reported sales of $27.6 billion during the year-earlier period. Kroger said Thursday it plans capital investments of roughly $3 billion in 2018, excluding mergers, acquisitions and buying back leased buildings....Carvana reported a net loss of $47.2 million for the fourth quarter of 2017, widening from a year-earlier loss of $35.7 million The used-vehicle retailer isknown for its vehicle vending machines....Goodbye to the Beetle. Volkswagen’s Frank Welsch has confirmed that the brand’s iconic compact car will not be replaced when the current model ends production.

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Page 1: sales@spotsndots.com The Daily News of TV Sales Friday ... · It’s the same story for local TV stations on No. 2 DirecTV Now (1.1 million subscribers), No. 3 Playstation Vue (550K

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 2018.The Daily News of TV Sales Friday, March 9, 2018

STREAMING TV SUBSCRIBERS ARE ADDING UPCABLE TV STILL LIVE TV GO-TO FOR NETFLIX SUBSCRIBERS The number of subscribers to an online video service grew 2.6 million during the past year and nearly 800,000 during the fourth quarter of 2017. That’s according to the Wall Street research firm MoffettNathanson which calculates 4.6 million Americans are now opening their wallets for products like YouTube TV, Hulu Live, and Dish’s Sling TV. “Since early 2010 we estimate that the cumulative number of cord-cutters and cord-never households has reached roughly 13.5 million,” the firm writes in a new report. But it points out that video services have only recaptured about a third of those households. That, MoffettNathanson concedes, has made it pretty tough on forecasters trying to figure out just how big a phenomenon it’ll become. What’s more certain is the gap between cable and satellite television businesses is “widening” with trend lines for cable TV subscriptions “softening” while satellite trends are “awful.” For broadcast TV watching all this play out the news isn’t nearly so bad. Sling TV has more subscribers than any other with 2.2 million paying customers at the end of Q4. It offers local TV stations. It’s the same story for local TV stations on No. 2 DirecTV Now (1.1 million subscribers), No. 3 Playstation Vue (550K subs), No. 4 Hulu Live (450K subs) and No. 5 YouTube TV (300K subs)—all of which offer local stations. Meantime new research shows cable television remains the way most Nextflix subscribers tune-in to live television programming. Nearly half (48%) of those surveyed by CivicScience said that’s the way they view traditional TV shows. Satellite TV is how 18% said they watch live TV while 6% said they use an old-fashioned antenna to get their local stations. That’s nearly as much as the 5% who reported they now watch live TV through an online streaming service. Perhaps most troubling for broadcasters is nearly one-in-five (18%) of Netflix subscribers claimed they no longer watch live television programming at all. One reason could be that 46% of Netflix-only subscribers are using the platform a few times a week. CivicScience says “that’s a strong engagement rate for a service, especially considering how many Netflix-only subscribers still have cable.” It also points out that Netflix is winning the streaming battle. Its research shows that 55% of the general population subscribes to a streaming service, and of that group, 85% are Netflix subscribers. “In the streaming service game, it’s a battle for second place as Netflix holds a strong first,” CivicScience says. And when viewers also pay for rivals Amazon Prime Video or Hulu, the data shows people are engaging with it on a much less frequent basis. But it also shows they’re less lively to go to the movies once a month or more.

ADVERTISER NEWS Toys R Us may soon liquidate its U.S. operations, sources told CNBC. In February, CNBC reported that the retailer was at risk of breaching the covenant on a $3.1 billion loan after a disappointing holiday season. Toys R Us’ sales, traffic and profit all fell far short of what it had told lenders to expect. The retailer filed for bankruptcy in September as it struggled with its $4.9 billion in debt....Nordstrom

has announced two acquisitions that will help it keep pace with retail rivals online, even as the Nordstrom family continues to work on taking the department store private. Nordstrom said Thursday it bought BevyUp and MessageYes. The financial terms of the transactions weren’t disclosed. BevyUp is a platform that allows sales associates to communicate with each other on the back end, and encourages shoppers to share information with each other and browse items

together online. MessageYes offers brands the opportunity to text their customers, leveraging artificial intelligence and integrated payments....Home Depot announced Thursday that it will donate $50 million to train 20,000 people as construction workers over the next decade, helping efforts to ease a dire shortage that’s curtailing home building and driving up house prices, says USAToday. The Home Builders Institute, the industry’s education arm, will use the money from the Home Depot Foundation to train veterans and U.S. Army soldiers who will soon be returning to civilian life, high school students and disadvantaged youth....Weight Watchers International is getting into the meal-kit business. The company will sell boxes that include fresh, pre-measured ingredients that you cook at home starting later this year. The news comes three days after Walmart announced plans to sell its own line of meal kits at 2,000 stores nationwide by the end of this year. Meal kits have grown in popularity as Americans increasingly look for the convenience of using pre-prepped meal ingredients. This $2.5 billion industry is expected to grow 20% annually, according to food industry consultant Pentallect....Kroger on Thursday reported Q4 earnings that were in line with analysts’ estimates. Net income for the fourth quarter totaled $854 million, compared with $506 million a year earlier. Revenue jumped 12.4 percent to $31 billion, slightly topping a forecast for $30.8 billion. The company reported sales of $27.6 billion during the year-earlier period. Kroger said Thursday it plans capital investments of roughly $3 billion in 2018, excluding mergers, acquisitions and buying back leased buildings....Carvana reported a net loss of $47.2 million for the fourth quarter of 2017, widening from a year-earlier loss of $35.7 million The used-vehicle retailer isknown for its vehicle vending machines....Goodbye to the Beetle. Volkswagen’s Frank Welsch has confirmed that the brand’s iconic compact car will not be replaced when the current model ends production.

Page 2: sales@spotsndots.com The Daily News of TV Sales Friday ... · It’s the same story for local TV stations on No. 2 DirecTV Now (1.1 million subscribers), No. 3 Playstation Vue (550K

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

NETWORK NEWS Frances Turner from Fox’s Marvel show The Gifted has been cast in a lead role of drama pilot in the works at ABC. The untitled drama explores the lives of five African-American sisters, all officers in the NYPD, as they face challenges of their high-risk jobs while juggling the responsibilities of marriage, motherhood and family. Aubin Wise, from the FX cable series Atlanta, is also in the cast of the pilot. The project comes form from CSI: NY showrunner Pam Veasey, Robin Roberts, Regina King and ABC Studios……Yosuf Gatewood of the CW series The Originals has joined the cast of NBC’s drama pilot In Between Lives. The series follows a mysterious young woman who reluctantly uses her gift of clairvoyance to help a veteran LAPD detective and a damaged ex-FBI outsider solve the most unnerving and challenging cases in the city. Gatewood has been cast to play the former criminal analyst with the FBI and the new kid on the LAPD Homicide Squad. His credits include the films Barbershop: The Next Cut and The Interpreter, and in shows like Lincoln Heights and CSI……Fox announced the team of analysts for Sunday’s special O.J. Simpson: The Lost Confession?. The team will include author, editor, publisher and TV host Judith Regan who conducted the original 2006 interview with Simpson that will be shown for the first time in the special. Christopher Darden, a 15-year veteran of the Los Angeles County District Attorney’s office. Eve Shakti Chen, a representative of the Nicole Brown Simpson family, Rita Smith, a senior adviser to the NFL on domestic violence and sexual assault, and Jim Clemente, a retired FBI Supervisory Special Agent/Profiler and former New York City prosecutor……ABC has renewed its freshman hit The Good Doctor for a second season. The medical drama is currently averaging a 1.8 adult 18-49 rating and 9.8 million total viewers, according to Nielsen’s Live +Same Day ratings. The performance makes The Good Doctor the second highest rated show on ABC, behind only Grey’s Anatomy. In the series, Freddy Highmore stars as Dr. Shaun Murphy, a young surgeon with autism and savant syndrome. The Good Doctor is the latest freshman series to pick up a renewal. CBS renewed the Big Bang Theory spinoff Young Sheldon. Fox has renewed Seth McFarland’s The Orville, the Marvel series The Gifted and Ryan Murphy’s 9-1-1……The cast of the ABC drama pilot Salvage has expanded to include Catalina Sandino Moreno. She will play a deputy who is determined, headstrong, and has an extremely strong moral streak. She joins previously announced cast members Toby Kebbell and Charity Wakefield.... Variety has confirmed that Raul Esparza is returning to NBC, just a month after he departed “Law & Order: SVU.” Esparza will play one of the lead roles in the NBC drama pilot Suspicion. The project is billed as a “Hitchcockian thriller” that revolves around a man named Danny Goodman (Derek Luke) who is coerced to become an informant for the FBI after accepting a loan from his millionaire neighbor (Esparza).

AVAILS Director of Sales: Cox Media Group Tulsa seeks a talented, experienced and motivated sales leader to develop and manage the sales strategies in an integrated media market including Radio, TV and Digital assets. The DOS will lead a team of sales managers and their team of AEs, will create a culture of cross-platform and cross-product selling including radio, television, digital agency and National. Minimum of 7-10 years of strategic

media sales management experience – preferably in broadcast TV or radio sales, preferred. CLICK HERE for more info or to apply. EOE. Hearst Television’s WMOR-TV, Tampa is seeking a dynamic Account Executive to sell their triopoly of stations and digital products. Individual must be self-motivated, results driven and creative. A proven track record in new business development along with strong negotiation skills is required.

Bachelor’s Degree or equivalent work experience preferred; experience in TV/Radio sales a plus. We are a destination company in a great market that offers a tremendous opportunity for the right person. CLICK HERE to apply. EOE. WDVM in the Washington DC market is seeking a Local Sales Manager. Position requires an individual with creativity, leadership skills, high energy and the ability to hire, train and motivate the sales team. The ideal candidate will also be an excellent negotiator with the ability to manage multiple sales projects and lead by example. Multi-platform sales experience and a solid understanding of WO, Matrix and strata a plus. If you are ready to take the next step in broadcast television sales, please send your cover letter and resume to: [email protected]. EOE.

See your ad here tomorrow! CLICK HERE for details.

THIS AND THAT Netflix is now worth $140 billion, thanks in part to a positive Q4 2017 earnings report and two million more streaming subscribers than they expected. Netflix’s new market value puts them ahead of McDonald’s and General Electric, according to Recode. Netflix is already worth more than Time Warner, CBS, and Viacom, and it is also getting close to IBM, Disney, and Comcast. Disney has a contract with Netflix for their Marvel and Lucasfilm content, but because they own 30 percent of Hulu, they may be removing that content when that contract is up…. Comcast will be increasing internet speeds in the Northeast by at least 25 percent. The increases will happen in the most popular tiers, and will bring 80 percent of their customers up to speeds of 150 mbps or more — with the average customers seeing an increase of at least 50 mbps. The tiers included are Xfinity Internet service tiers, including Blast and Performance Pro.... Total broadcast retransmission revenues and cable network carriage fees grew 8.5% to $10.93 billion in the fourth quarter of last year, according to MoffettNathanson Research.

3/9/2018

Conan O’Brien

Nickelodeon is bringing back the popular preschoolers’ TV show “Blue’s Clues.” There’s one slight change – Blue only

solves triple homicides

Page 3: sales@spotsndots.com The Daily News of TV Sales Friday ... · It’s the same story for local TV stations on No. 2 DirecTV Now (1.1 million subscribers), No. 3 Playstation Vue (550K

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

eMARKETER: NEW US DIGITAL USER STATS Nearly 280 million people, or 85.0% of the US population, will go online at least once a month in 2018, according to a new study from eMarketer. With smartphone adoption slowing, growth is expected to be less than 2% this year and remain low throughout the forecast period. The biggest shifts occurring among the US digital audience are no longer device-related, but rather, based on activities. “At this point, just about everyone who wants a smartphone has one,” said Corey McNair, eMarketer forecasting analyst and author of the new report, “US Digital Users: eMarketer’s Estimates for 2018.” User numbers will rise just 4.2% in 2018 to 229.2 million people. Seniors ages 65 and older will be the only audience to experience a double-digit growth rate in smartphone use this year. Approximately 83.0% of internet users will use a mobile phone to go online. Desktops/laptops are still widely used, as 84.0% of digital users are expected to use them to visit the web this year. Meanwhile,16.0% will exclusively use a mobile device for internet access. (emarketer.com)

HOUSE MAJORITY PAC TO SPEND $43M House Majority PAC, the group that helps House Democrats, is making $43 million in TV ad buys in 33 media markets for the final weeks of the 2018 campaign. These initial orders will be placed over the course of the next month, which is the earliest the super PAC has booked time for the fall. Ad time has been reserved in the following markets:

Albany, N.Y.: $210,000 Bangor, Maine: $616,000Cedar Rapids, Iowa: $540,000Chicago: $1,042,500Dallas-Ft. Worth, TX: $2,200,000Denver: $1,760,000Des Moines, Iowa: $600,000Detroit: $1,129,000Houston: $1,980,000Kansas City, Mo.: $660,000Lansing, Mich.: $162,000Las Vegas: $2,790,000Lexington, Ky.: $564,000Los Angeles: $5,215,000Manchester, N.H./Boston: $762,500 Miami: $1,119,500 Minneapolis: $3,520,000

ACCOUNT ACTIONS AdAge reports Danone picked WPP’s Wavemaker as its media agency in North America as the yogurt maker aims to better reach consumers, especially younger ones buying plant-based and organic fare. Four of the biggest brands, Dannon, Silk, Horizon and International Delight, will get the lion’s share of the media dollars.

DIGITAL PLOWS AHEAD - ABOUT TO TAKE LEAD Jack Myers TomorrowToday forecasts that total U.S. digital ad spend will surpass national/local TV ad spend (digital and linear combined) by 2020. Total U.S. digital ad spend is expected to grow by nearly $100 billion from 2010 to 2020 (+580%). Digital’s share of total U.S. advertising investment is expected to increase from 31% in 2016 to 49% in 2020. For clarification, Myers points out that national TV includes the categories of cable/satellite TV, broadcast network TV, broadcast syndication TV and interactive/VOD/addressable

TV that deliver viewership nationally. Local TV includes the categories of local cable and local and national spot broadcast TV that deliver viewership on a market-specific basis. National spot broadcast refers to market-specific ad spend by marketers located outside a local broadcaster’s coverage area. (DETAILS)

HOUSEHOLD DEBT GROWS U.S. consumers racked up $92.2

billion in credit card debt during 2017, pushing outstanding balances past $1 trillion for the first time ever, according to WalletHub’s latest Credit Card Debt Study. The average household owes a record $8,600 – $138 more than at the height of the Great Recession; The $67.6 billion in credit card debt that we added in Q4 2017 is the highest quarterly accumulation in 30 years – 68% higher than the post-Great Recession average.

YOUTUBE SIGNS UP WITH MLB YouTube TV has a new marketing deal with Major League Baseball, says MediaPost. According to the deal, YouTube TV will be the presenting sponsor for the 2018 and 2019 World Series, as well as sponsoring a season-long “first pitch” segment on MLB Network and MLB.tv. There will also be national TV ad spots, branding on MLB digital properties, in-stadium promotions and on-air callouts.

3/9/2018

Jimmy Fallon

A worker at a factory that makes Coca-Cola cans was

caught urinating into the cans. But Coke quickly dealt

with the situation by putting a Mountain Dew label on it.

WEDNESDAY NIELSEN RATINGS - LIVE + SAME DAY

New York City: $1,325,000 Omaha, Neb.: $896,250

Orlando, Fla.: $1,930,000Philadelphia: $2,970,000

Phoenix: $1,170,000Portland, ME: $1,008,000

Presque Isle, Maine: $70,000Sacramento, CA: $1,540,000

San Antonio: $850,000San Diego: $1,242,000

Seattle: $1,694,250St. Louis: $530,000

Topeka, Kan.: $240,000Tucson, Ariz.: $480,000Wash, D.C.: $1,880,000

WP Beach, Fla.: $420,000