disney wins fox hunt: here’s what it all means · amobee principal brand analyst jonathan cohen...

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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 Monday, July 23, 2018 DISNEY WINS FOX HUNT: HERE’S WHAT IT ALL MEANS ADVERTISER NEWS Five Below was downgraded by Credit Suisse on Friday as shares of the value retailer have skyrocketed more than 125 percent over the last 12 months. Credit Suisse analyst Judah Frommer lowered the rating to neutral from outperform, while still maintaining a 12-month price target on Five Below shares of $110. The stock hit a fresh 52-week high on Thursday at $107.93. The retailer has a market value of roughly $6 billion, according to CNBC.com. Five Below, which targets tweens and teens with items priced under $5, is hoping to take a larger share of the toy market in the wake of the demise of Toys ‘R’ Us... At least three lawsuits have been filed in Cook County Circuit Court in Illinois against McDonald’s by two individual customers and one couple who allege they became sick after eating McDonald’s salads. McDonald’s has stopped selling the salads at 3,000 restaurants after they were linked to 163 “laboratory-confirmed” cases of cyclosporiasis across 10 U.S. states, according to the Centers for Disease Control... The maker of Ritz Cracker have announced a voluntary recall of some varieties of the product because of the potential presence of salmonella. Mondelez Global, the manufacturer, says the products contain whey powder, which the whey supplier has recalled because of the salmonella risk. Customers are angry at Chick-Fil-A, which is unusual. The company announced last week that the 2018 Cow Calendar will be the last.... Unilever reported sales growth, excluding spreads, of 2.7 percent for the first half of 2018, slightly less than estimates of 3 percent. The maker of Popsicle, Breyers and Hellmann’s reported that underlying sales increased nearly 2 percent, not including the recently divested spreads business... VF Corp., the parent company of Timberland, Vans, The North Face, Wrangler and other labels, started its fiscal year strong out of the gate. For the quarter ended June 30th, VF Corp.’s revenues increased 23 percent to $2.8 billion, or 40 cents a share. This was a jump from $2.25 billion, and 27 cents for the same period last year, writes Chain Store Age... Specialty retailer Brookstone is shopping for bankruptcy financing to fund its business if it files for Chapter 11 protection, according to WSJ.com. The chain seeks roughly $50 million to keep the business afloat, one source told the newspaper. A Chapter 11 filing could happen shortly after it nails down the financing... The Jeep brand is expected to get more attention as brand boss Mike Manley takes the reins of Fiat Chrysler Automobiles, following a post-op health crisis for legendary CEO Sergio Marchionne. Marchionne was replaced on Saturday due to a health downturn following recent surgery... Goldman Sachs is concerned about Apple’s slowing iPhone sales. It says it sees a 12-month downside risk of 14.5 percent, reiterating its $164 price target for tech giant. That’s well below Friday’s closing share price of $191.44. ON THE HORIZON: A BIG FIGHT WITH NETFLIX It’s finally a done deal, for all intents and purposes, anyway: Disney has prevailed over Comcast in a fight for a key collection of assets belonging to 21st Century Fox. It’s a deal that dramatically re-sets the contemporary media landscape. It also opens a new chapter, which is a full-scale war between Disney and Netflix, as well as other players in the OTT space. For Disney, fighting such battles means it needs programming that will allow it to compete in a digital, direct-to-consumer future. “Media has always been a distribution business, but digital is about one-to- one,” Mike Kelly, CEO of media-industry consulting firm Kelly Newman Ventures, told Business Insider. “So the only way to remain central to consumers is to continue to have scale by owning as much of a library as possible.” Disney, which has already launched its own streaming service, owns an array of major programming assets, including movies made by its studios and the rights to megahits like Star Wars. But the acquisition of the 21st Century Fox entertainment content substantially expands that library. As one industry insider explains: “Nobody knows what the business model of the future is. But if you have a lot of content, you’re either going to get people to pay for it, run ads in it, or license it to somebody. So this is a pretty good hedge for Disney.” Disney’s powerhouse library—which includes all things Mickey, Pixar and Marvel—is going to be supplemented with a content-development strategy, which is key to other players in the OTT space that develop their own original series. For Disney, it’s spent more than a decade working to tap into the most passionate fan bases, the multibillion- dollar acquisition of Lucasfilm and its venerable Star Wars franchise being a prime example. BUT WHAT ABOUT CONSUMERS? Not everyone believes the deal is going to benefit Joe and Jane America. “This acquisition is about the Murdoch family cashing out and Disney trying to future-proof its empire,” Paul Verna, eMarketer’s principal analyst for video, told Forbes last year. “There is no benefit to consumers that I can envision. If anything, the alliance will result in fewer choices and higher prices, since it will consolidate ownership of important content and distribution properties under one roof.” Amobee principal brand analyst Jonathan Cohen says brands should be able to target fans of varying genres at an even greater scale. “For instance,” he told Forbes, “if an advertiser approaches Disney about wanting to target superhero fans, a buy around Agents of S.H.I.E.L.D. on ABC could be up-sold to include purchasing ad time around Legion on FX and Runaways on Hulu, a platform Disney will now own a majority of.

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Page 1: DISNEY WINS FOX HUNT: HERE’S WHAT IT ALL MEANS · Amobee principal brand analyst Jonathan Cohen says brands should be able to target fans of varying genres at an even greater scale

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 Monday, July 23, 2018

DISNEY WINS FOX HUNT: HERE’S WHAT IT ALL MEANSADVERTISER NEWS Five Below was downgraded by Credit Suisse on Friday as shares of the value retailer have skyrocketed more than 125 percent over the last 12 months. Credit Suisse analyst Judah Frommer lowered the rating to neutral from outperform, while still maintaining a 12-month price target on Five Below shares of $110. The stock hit a fresh 52-week high on Thursday at $107.93. The retailer has a market value of roughly $6 billion, according to CNBC.com. Five

Below, which targets tweens and teens with items priced under $5, is hoping to take a larger share of the toy market in the wake of the demise of Toys ‘R’ Us... At least three lawsuits have been filed in Cook County Circuit Court in Illinois against McDonald’s by two individual customers and one couple who allege they became sick after eating McDonald’s salads. McDonald’s

has stopped selling the salads at 3,000 restaurants after they were linked to 163 “laboratory-confirmed” cases of cyclosporiasis across 10 U.S. states, according to the Centers for Disease Control... The maker of Ritz Cracker have announced a voluntary recall of some varieties of the product because of the potential presence of salmonella. Mondelez Global, the manufacturer, says the products contain whey powder, which the whey supplier has recalled because of the salmonella risk. Customers are angry at Chick-Fil-A, which is unusual. The company announced last week that the 2018 Cow Calendar will be the last.... Unilever reported sales growth, excluding spreads, of 2.7 percent for the first half of 2018, slightly less than estimates of 3 percent. The maker of Popsicle, Breyers and Hellmann’s reported that underlying sales increased nearly 2 percent, not including the recently divested spreads business... VF Corp., the parent company of Timberland, Vans, The North Face, Wrangler and other labels, started its fiscal year strong out of the gate. For the quarter ended June 30th, VF Corp.’s revenues increased 23 percent to $2.8 billion, or 40 cents a share. This was a jump from $2.25 billion, and 27 cents for the same period last year, writes Chain Store Age... Specialty retailer Brookstone is shopping for bankruptcy financing to fund its business if it files for Chapter 11 protection, according to WSJ.com. The chain seeks roughly $50 million to keep the business afloat, one source told the newspaper. A Chapter 11 filing could happen shortly after it nails down the financing... The Jeep brand is expected to get more attention as brand boss Mike Manley takes the reins of Fiat Chrysler Automobiles, following a post-op health crisis for legendary CEO Sergio Marchionne. Marchionne was replaced on Saturday due to a health downturn following recent surgery... Goldman Sachs is concerned about Apple’s slowing iPhone sales. It says it sees a 12-month downside risk of 14.5 percent, reiterating its $164 price target for tech giant. That’s well below Friday’s closing share price of $191.44.

ON THE HORIZON: A BIG FIGHT WITH NETFLIX It’s finally a done deal, for all intents and purposes, anyway: Disney has prevailed over Comcast in a fight for a key collection of assets belonging to 21st Century Fox. It’s a deal that dramatically re-sets the contemporary media landscape. It also opens a new chapter, which is a full-scale war between Disney and Netflix, as well as other players in the OTT space. For Disney, fighting such battles means it needs programming that will allow it to compete in a digital, direct-to-consumer future. “Media has always been a distribution business, but digital is about one-to-one,” Mike Kelly, CEO of media-industry consulting firm Kelly Newman Ventures, told Business Insider. “So the only way to remain central to consumers is to continue to have scale by owning as much of a library as possible.” Disney, which has already launched its own streaming service, owns an array of major programming assets, including movies made by its studios and the rights to megahits like Star Wars. But the acquisition of the 21st Century Fox entertainment content substantially expands that library. As one industry insider explains: “Nobody knows what the business model of the future is. But if you have a lot of content, you’re either going to get people to pay for it, run ads in it, or license it to somebody. So this is a pretty good hedge for Disney.” Disney’s powerhouse library—which includes all things Mickey, Pixar and Marvel—is going to be supplemented with a content-development strategy, which is key to other players in the OTT space that develop their own original series. For Disney, it’s spent more than a decade working to tap into the most passionate fan bases, the multibillion-dollar acquisition of Lucasfilm and its venerable Star Wars franchise being a prime example.BUT WHAT ABOUT CONSUMERS? Not everyone believes the deal is going to benefit Joe and Jane America. “This acquisition is about the Murdoch family cashing out and Disney trying to future-proof its empire,” Paul Verna, eMarketer’s principal analyst for video, told Forbes last year. “There is no benefit to consumers that I can envision. If anything, the alliance will result in fewer choices and higher prices, since it will consolidate ownership of important content and distribution properties under one roof.” Amobee principal brand analyst Jonathan Cohen says brands should be able to target fans of varying genres at an even greater scale. “For instance,” he told Forbes, “if an advertiser approaches Disney about wanting to target superhero fans, a buy around Agents of S.H.I.E.L.D. on ABC could be up-sold to include purchasing ad time around Legion on FX and Runaways on Hulu, a platform Disney will now own a majority of.

Page 2: DISNEY WINS FOX HUNT: HERE’S WHAT IT ALL MEANS · Amobee principal brand analyst Jonathan Cohen says brands should be able to target fans of varying genres at an even greater scale

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

NETWORK NEWS Sara Haines is leaving ABC’s daily talkfest The View to host the third hour of the network’s Good Morning America with Michael Strahan in September. Haines is the second exit from The View in recent days. Last week ABC News said that three-year co-host Paula Faris is leaving the show and her weekend GMA duties for a new assignment that includes contributing to GMA and a podcast on faith. ABC News announced in May that GMA would expand to a third hour as a replacement for canceled culinary show The Chew... CBS is making good on its promise to further expand the Star Trek franchise under a production deal with Alex Kurtzman. The network’s next venture is a four-part series of 10-to-15-minute episodes that will be released starting this fall on the CBS All Access streaming service. Each of the Short Treks episodes will reveal clues about the story unfolding on Star Trek: Discovery, which is heading into its second season. Kurtzman serves as co-creator and executive producer. The original Star Trek debuted in 1966 as a U.S. television series. It was created by the late Gene Roddenberry and featured characters including Captain James T. Kirk, played by William Shatner, and Vulcan officer Mr. Spock, played by the late Leonard Nimoy... The Late Show with Stephen Colbert on CBS enjoyed its most-watched second quarter, according to Nielsen live plus 7-day ratings for April through June. It averaged 3.63 million viewers. NBC’s The Tonight Show averaged 2.41 million viewers, and ABC’s Jimmy Kimmel Live averaged 2.1 million… NBC-owned COZI TV is celebrating the legends of comedy with a special eight-hour, 16-episode Lucy Nanny marathon on Saturday, August 5th. This will include eight of the most memorable episodes of Here’s Lucy, followed by eight of the Lucy-est episodes of The Nanny, where Fran Drescher’s inspiration, Lucille Ball, shines through. The programming event also celebrates the grand opening of The National Comedy Center, located in Lucille Ball’s hometown of Jamestown, New York. The marathon will also include two guest-starring appearances by Elizabeth Taylor, including her famous appearance alongside Richard Burton in Here’s Lucy, as well as in The Nanny… Penelope Ann Miller has been cast to play district attorney Ms. Wright in the upcoming third season of Riverdale. The CW series stars K.J. Apa, Lili Reinhart, Camila Mendes, Cole Sprouse, Marisol Nichols, Madelaine Petsch, Ashleigh Murray, Mark Consuelos, Casey Cott, Skeet Ulrich, Mädchen Amick, Luke Perry and Vanessa Morgan. Roberto Aguirre-Sacasa, Sarah Schechter and Jon Goldwater serve as executive producers... Actress Elmarie Wendel, best known for her role in the popular alien sitcom 3rd Rock from the Sun, has died. Her daughter revealed the news via social media, calling her “a great mom and a badass dame.” On the NBC sitcom, Wendel played Mamie Dubcek, the extraterrestrial Solomon family’s freewheeling landlord and downstairs neighbor. Prior to 3rd Rock, she was a working TV actress with stints on Knight Rider, The Jeffersons, The Facts of Life, Murphy Brown, Major Dad, Seinfeld, and Murder, She Wrote, among others. Wendel was 89 years old.

AVAILS Cunningham Broadcasting Corporation is seeking a driven General Manager for their Johnstown, PA location. The GM will lead a team to develop customized solutions for new and existing customers. This position requires an innovative leader with a demonstrated ability to find creative solutions that meet the demands of advertisers. Please send your resume and cover letter, including desired compensation, to [email protected]. EOE. Background check and drug screening required.

Radio Account Executive needed for sales of Sunrise Broadcasting cluster of stations in the Wilmington, N.C. area. The ideal candidate is an experienced sales professional (3+ years outside sales experience preferred) with incredible drive and a thirst to learn. You must possess a high degree of self-motivation, the ability to work well on your own and within a team environment, and the ability to communicate clearly

with and direct fulfillment team members. Candidates must APPLY ONLINE. EOE M/F. Sunrise Broadcasting Company participates in E-Verify. All our properties are tobacco free. 6abc/WPVI-TV, Philadelphia’s No. 1 television station, has a full-time position open for a Sales Service Supervisor. Responsibilities include managing the sales service department and overseeing the day-to-day operations of inventory and order management. You will be working directly with Sales Management, Local and National Account Executives and ABC Owned Television Centralized Traffic on a daily basis. Previous knowledge of traffic and sales service functions a must, with WideOrbit experience desired. CLICK HERE to apply. EEO/M/F/V D/SO/GI

See your ad here tomorrow! CLICK HERE for details.

30% OF NETFLIX SUBSCRIBERS GO PREMIUM New Parks Associates OTT video research finds that 30 percent of Netflix subscribers are in the premium service tier. That’s up from the 21 percent in late 2017. At the same time, uptake of Netflix’s basic tier has fallen from 35 percent of subscribers in late 2017 to 27 percent in early 2018. These shifts come despite Netflix’s price increase to its premium tier in October 2017. “This shift reflects trends that we are seeing across the industry, beyond Netflix,” said Brett Sappington, Parks Associates’ senior director of research. “Netflix’s basic tier is limited to one screen and SD quality, while the premium tier offers viewing on up to four screens and access to Ultra HD content. Many OTT-subscribing households have multiple people who want to watch similar content at the same time. “Rather than competing for access,” Sappington continues, “consumers are willing to pay extra for the convenience of multiple streams. At the same time, consumers want to watch on TVs, making HD viewing a must. Demand for Ultra HD TV is small but increasing.”

7/23/2018

Seth Meyers

The makers of Crocs have announced they’re coming

out with a high-heeled shoe. While the wearers of Crocs

have announced they’re going to give plaid shorts a try.

Page 3: DISNEY WINS FOX HUNT: HERE’S WHAT IT ALL MEANS · Amobee principal brand analyst Jonathan Cohen says brands should be able to target fans of varying genres at an even greater scale

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

TOP BROADCAST SHOWS VIEWING DOWN VS. ’17 MediaPost’s Television News Daily reports that NBC is on top this summer, while most broadcast networks’ viewing metrics are down from a year ago. Through Thursday, NBC’s America’s Got Talent has been averaging, according to Nielsen, 11.6 million viewers and a 2.2 rating among 18-49 viewers. NBC’s top three shows are down anywhere from 11 percent to 19.5 percent for the summer versus a year ago. On ABC, The Bachelorette is at 5.7 million and a 1.4 rating in 18-49. It’s down 3.3 percent versus a year ago. CBS’ Big Brother has also seen declines. Last Thursday’s edition drew 5.2 million viewers, down 13 percent from a year ago. Wednesday’s was at 5 million, off 21 percent. And the prior Sunday’s was at 5 million, a drop of 17.4 percent. The show’s 18-49 rating is averaging 1.4. Fox’s MasterChef is even versus a year ago, but the network’s The Four: Battle for Stardom is down 30 percent. On The CW, Penn & Teller: Fool Us is at 1.4 million viewers, down 9 percent. For the most recent reporting week, July 9-15, for Nielsen’s live program plus same-day ratings metric, NBC is grabbing 4.3 million viewers; CBS, 3.96 million; ABC, 3.4 million; Fox, 2.12 million; Telemundo, 1.13 million; Univision, 1.1 million; and The CW, 900,000.

WORLD CUP: BUD COMES UP BIG ON TWITTER MediaPost reports that Budweiser was the most globally mentioned brand of the 2018 FIFA World Cup, followed by Adidas, Coca-Cola, Nike and Apple. The beer manufacturer’s digital strategy enabled it to “win the digital World Cup,” according to official Twitter analytics, which indicated the brand had 637,925 mentions during the tournament. The campaign, which a company spokesperson called the brand’s most ambitious to date for Budweiser and AB InBev, engaged fans in Moscow and in more than 50 markets around the world through a variety of activations. Budweiser’s global social content around the World Cup included the Dani Alves Reaction Challenge, the Cristiano Ronaldo Man of the Match Tweet and the Cheer for a Beer Brazil Facebook promotion. There were a total of 115 billion impressions (views on Twitter) of tweets during the World Cup, according to Elaine Filadelfo, Twitter’s data editor.

REPORT: AMAZON AD MACHINE GAINS TRACTION The popularity of Amazon search ads is still growing. That’s according to performance-marketing agency Merkle’s Q2 2018 Digital Marketing Report (DMR). It analyzes trends across paid and organic search, social media and display, and it provides insights into what’s happening with Amazon, Bing, Google, Instagram, Facebook and Yahoo. The report says marketers spent more on the e-commerce giant’s Sponsored Products ads, up 165 percent, during the second quarter of 2018. This ad group still accounts for the majority of Amazon search investment, taking 88 percent spend share in the second quarter. They also drive the highest sales per click for advertisers among Amazon’s search formats. Headline Search Ads also thrived, up 162 percent on a year-over-year basis.

THIS AND THAT AT&T says it’s adding 5G service to three more cities, part of the company’s previous announcements that it was bringing the advanced cell service to 12 more cities in 2018. The next three cities to get 5G are Charlotte, Raleigh and Oklahoma City. The company last added service to Dallas, Atlanta and Waco in February… JetBlue Airways is rolling out a new round of layoffs as part of a major corporate reshuffling. The airline says it will be restructuring its operations and “eliminating a number of positions” in a number of ways, including layoffs, buyouts and attrition.

JetBlue has been conducting a top-to-bottom review of the organization over the last several months. No word yet on how many jobs will ultimately be lost. But the company is trying to reduce operational costs by up to $300 million per year by 2020... AMC Entertainment Holdings is partnering with Facebook on a new ticketing venture that will allow U.S. moviegoers to buy tickets from the theater chain on the social-media platform. Facebook already has

agreements with online ticketing services Fandango and Atom Tickets, but this is the first time the social media giant is partnering with a theater chain. All payments through Facebook will be processed by AMC, Fandango or Atom Tickets, AMC says.

ZASLAV’S DISCOVERY DEAL EXTENDED Discovery says it’s extended the employment contract of CEO David Zaslav for five years, running through the end of 2023. Zaslav, who joined Discovery in 2007 from NBC Universal, has piloted Discovery through one of its greatest periods of growth. The company completed the $14.6 billion purchase of Scripps Networks Interactive in March. Zaslav has helped refocus Discovery on the international market, buying European sports networks Eurosport in 2015, securing Olympic Games broadcast rights through 2024 and recently landing a 12-year, $2 billion deal for PGA Tour rights outside of the U.S. As part of his new employment deal, Zaslav’s annual base salary will remain constant at $3 million, and he will be eligible for a $9 million bonus in 2018. According to the deal, that potential bonus will grow to a maximum of $22 million annually after 2019.

7/23/2018

FunnyTweeter.com

After months and months on my weight loss supplement,

I finally lost $200.

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