fcc changes could ease more mergers · 12.2 in 2015 to 12.3 in 2016. but that comes despite the...

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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 2017. The Daily News of TV Sales Friday, March 31, 2017 FCC CHANGES COULD EASE MORE MERGERS RETURN OF “UHF DISCOUNT”? The change in leadership at the Federal Communications Commission may bring about the reversal of an Obama administration policy, and if that change occurs it will be easier for more consolidation to take place among broadcast TV groups. FCC Chairman Ajit Pai is expected to announce a proposal that will loosen the national cap limiting groups from owning stations in markets that amount to more than 39% of U.S. TV households. For many years, owners had been allowed a “UHF discount” of 50% for a market’s TV HH if they did not own a VHF station in that market, but that policy was reversed last year under prior Chairman Tom Wheeler. (The Wall Street Journal adds that Pai plans to reverse several other policies Wheeler instituted.) Broadcasters have been campaigning for updates to many policies written well before current technology changed the TV landscape. In a recent meeting with the FCC, CBS’ Anne Lucey said “our industry has been frozen in time,” meanwhile, “our video competitors have marched on unfettered by ownership limits.” Sinclair Broadcast Group has been campaigning for a complete end of ownership limits, not just changing the way the limits are calculated. “Television stations face increased national competition from a host of new services,” the company said in a recent filing. “The national cap is simply no longer justified in today’s media environment.” The Journal notes reinstatement of the UHF discount would give several group ownerships room to acquire more stations. According to its calculations, Sinclair’s current 38% would drop to 24% with the discount reinstated, Nexstar’s 39% would drop to 26% and Tegna’s 32% would become 27%. With recent speculation about a potential Sinclair buyout of Tribune stations, a return of the discount could make a big difference is securing approval, or at least possibly reducing the number of stations that might have to be sold off to secure approval. Tribune currently has a waiver to operate at 44% of U.S. TV homes, but that would drop to just 26% if the UHF discount would be reinstated. Some ownership groups have already signaled they’ll be looking for acquisitions if it’s possible. CBS’ Les Moonves told analysts this month, “In the right circumstances if the cap is lifted we would strategically want to buy more stations because we think it is important.” CBS is currently at 38% of TV homes, but that would fall to about 25% with the discount reinstated. And Nexstar’s Perry Sook told analysts the company is “already in discussions should the rules change about opportunities that might be available to us.” ADVERTISER NEWS There are about 12,000 2015 Volkswagen diesels that have been sitting on dealer’s lots since the emissions scandal broke two years ago, and a ruling just issued by the Environmental Protection Agency will now allow dealers to finally sell them. Despite the fact that diesels accounted for about 20% of VW sales before the scandal, the company has said it won’t offer any new diesels through at least the 2018 model year……The Brewers Association reports craft breweries’ share of the beer market rose very slightly last year from 12.2 in 2015 to 12.3 in 2016. But that comes despite the loss of 1.2 million barrels formerly categorized as craft beers made by companies that have been taken over by Anheuser-Busch InBev or other major brewers. There are now just over 5300 breweries in the U.S. with 3,132 microbreweries, 1,916 brewpubs and 167 regional craft breweries……The deep-discount “value” retailers continue to generally perform better than most other stores and the CEO of Ollie’s Bargain Outlets says “our fourth quarter results were very strong across the board.” Now at 234 stores in 19 states, Ollie’s had a 2% same-store sales increase but after an expansionary year it posted a 15.3% gain in total sales. It’s looking to open 33-35 new stores this year and unlike so many other chains, there are no closures on the horizon…… Utah-based Four Foods Group is continuing what Nation’s Restaurant News calls the company’s “rapid expansion into new territories and concepts” by buying 48 Little Caesars locations in the Southeast. The company has mostly operated Kneaders Bakery & Café restaurants to date and its CEO stated “We have now become one of the leading restaurant concept incubators…and we are just getting started”……Dunkin’ Donuts will be the first restaurant to partner with navigation app Waze and will offer “order ahead” capabilities through the app…… Siblings Hardee’s and Carl’s Jr. have been known for years for commercials that have “pushed the envelope” for being racy and potentially offensive to some viewers. Now however the chains are taking a different tack and will focus spots on food quality. Its CEO said “We’re not apologetic about the direction of the old campaign…It helped make eating a fast food burger seem sexy and that’s not a very easy thing to do”……Harbor Freight, which operates about 700 stores nationwide, is the latest advertiser to run into trouble over advertising practices. After a class-action lawsuit, it has agreed to offer refunds of up to 30% because of claims made based on “sale” prices and “compare at” references in its ads, even though the highlighted products were never sold at the higher price used for comparisons.

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Page 1: FCC CHANGES COULD EASE MORE MERGERS · 12.2 in 2015 to 12.3 in 2016. But that comes despite the loss of 1.2 million barrels formerly categorized as craft beers made by companies that

PAGE 1

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 2017.The Daily News of TV Sales Friday, March 31, 2017

FCC CHANGES COULD EASE MORE MERGERSRETURN OF “UHF DISCOUNT”? The change in leadership at the Federal Communications Commission may bring about the reversal of an Obama administration policy, and if that change occurs it will be easier for more consolidation to take place among broadcast TV groups. FCC Chairman Ajit Pai is expected to announce a proposal that will loosen the national cap limiting groups from owning stations in markets that amount to more than 39% of U.S. TV households. For many years, owners had been allowed a “UHF discount” of 50% for a market’s TV HH if they did not own a VHF station in that market, but that policy was reversed last year under prior Chairman Tom Wheeler. (The Wall Street Journal adds that Pai plans to reverse several other policies Wheeler instituted.) Broadcasters have been campaigning for updates to many policies written well before current technology changed the TV landscape. In a recent meeting with the FCC, CBS’ Anne Lucey said “our industry has been frozen in time,” meanwhile, “our video competitors have marched on unfettered by ownership limits.” Sinclair Broadcast Group has been campaigning for a complete end of ownership limits, not just changing the way the limits are calculated. “Television stations face increased national competition from a host of new services,” the company said in a recent filing. “The national cap is simply no longer justified in today’s media environment.” The Journal notes reinstatement of the UHF discount would give several group ownerships room to acquire more stations. According to its calculations, Sinclair’s current 38% would drop to 24% with the discount reinstated, Nexstar’s 39% would drop to 26% and Tegna’s 32% would become 27%. With recent speculation about a potential Sinclair buyout of Tribune stations, a return of the discount could make a big difference is securing approval, or at least possibly reducing the number of stations that might have to be sold off to secure approval. Tribune currently has a waiver to operate at 44% of U.S. TV homes, but that would drop to just 26% if the UHF discount would be reinstated. Some ownership groups have already signaled they’ll be looking for acquisitions if it’s possible. CBS’ Les Moonves told analysts this month, “In the right circumstances if the cap is lifted we would strategically want to buy more stations because we think it is important.” CBS is currently at 38% of TV homes, but that would fall to about 25% with the discount reinstated. And Nexstar’s Perry Sook told analysts the company is “already in discussions should the rules change about opportunities that might be available to us.”

ADVERTISER NEWS There are about 12,000 2015 Volkswagen diesels that have been sitting on dealer’s lots since the emissions scandal broke two years ago, and a ruling just issued by the Environmental Protection Agency will now allow dealers to finally sell them. Despite the fact that diesels accounted for about 20% of VW sales before the scandal, the company has said it won’t offer any new diesels through at least the 2018 model year……The Brewers

Association reports craft breweries’ share of the beer market rose very slightly last year from 12.2 in 2015 to 12.3 in 2016. But that comes despite the loss of 1.2 million barrels formerly categorized as craft beers made by companies that have been taken over by Anheuser-Busch InBev or other major brewers. There are now just over 5300 breweries in the U.S. with 3,132 microbreweries, 1,916 brewpubs and 167 regional craft breweries……The deep-discount “value” retailers continue to generally perform better than most other stores and the CEO of

Ollie’s Bargain Outlets says “our fourth quarter results were very strong across the board.” Now at 234 stores in 19 states, Ollie’s had a 2% same-store sales increase but after an expansionary year it posted a 15.3% gain in total sales. It’s looking to open 33-35 new stores this year and unlike so many other chains, there are no closures on the horizon…… Utah-based Four Foods Group is continuing what Nation’s Restaurant News calls the company’s “rapid expansion into new territories and concepts” by buying 48 Little Caesars locations in the Southeast. The company has mostly operated Kneaders Bakery & Café restaurants to date and its CEO stated “We have now become one of the leading restaurant concept incubators…and we are just getting started”……Dunkin’ Donuts will be the first restaurant to partner with navigation app Waze and will offer “order ahead” capabilities through the app……Siblings Hardee’s and Carl’s Jr. have been known for years for commercials that have “pushed the envelope” for being racy and potentially offensive to some viewers. Now however the chains are taking a different tack and will focus spots on food quality. Its CEO said “We’re not apologetic about the direction of the old campaign…It helped make eating a fast food burger seem sexy and that’s not a very easy thing to do”……Harbor Freight, which operates about 700 stores nationwide, is the latest advertiser to run into trouble over advertising practices. After a class-action lawsuit, it has agreed to offer refunds of up to 30% because of claims made based on “sale” prices and “compare at” references in its ads, even though the highlighted products were never sold at the higher price used for comparisons.

Page 2: FCC CHANGES COULD EASE MORE MERGERS · 12.2 in 2015 to 12.3 in 2016. But that comes despite the loss of 1.2 million barrels formerly categorized as craft beers made by companies that

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

NETWORK NEWS ABC has taken its freshmen drama series Time After Time from its schedule after just five episodes. The series has not gained any ratings traction, averaging just 2.2 million total viewers and a 0.5 18-49 rating. The drama will be replaced by Match Game on Sunday nights for now…Jay R. Ferguson (The Real O’Neals, Mad Men) has been tapped for the lead role in the CBS comedy pilot Living Biblically. The series is based on A.J. Jacobs’ bestselling book The Year of Living Biblically, about a modern-day man at a crossroads in his life who decides to live according to the Bible. Ferguson follows Matt Shively as the second cast member to exit the low-rated The Real O’Neals. The ABC comedy is not expected to get a third season……For the first time in almost 13 years, NBC has an in-season scripted series that has topped all broadcast and cable shows for the number one spot in total viewers. The last time that happened for the network was May 2004, when the Frasier series finale led the week. The March 14th finale of the first season of This Is Us hit a series-high record of 17.776 million views in the Live +7 day Nielsen survey. This Is US ranks as the season’s number one broadcast drama in Live +7 day 18-49 with a 4.82 rating, tied with Fox’s Empire……. The Late Show with Stephen Colbert (CBS) won the late-night TV battle in the first quarter by delivering 3.29 million viewers, beating Jimmy Fallon’s Tonight Show on NBC by 260,000 total viewers. ABC’s Jimmy Kimmel Live posted 2,256,000 total viewers to place third. This is the first late-night win for CBS in the first quarter since 2010. In the adult 18-49 demo, The Tonight Show continued to dominate by winning 13 of 13 weeks with an average rating of 0.75. Colbert’s demo rating for the same period was 0.58 and Kimmel’s number was a 0.49……The debut of the ABC comedy Imaginary Mary fell flat Wednesday. The Jenna Elfman and Rachel Dratch sitcom about a conflicted career woman and the return of the imaginary friend only she can see posted a 1.4 18-49 rating. That was down 30% from the debut of Speechless with Minnie Driver last September.……ABC has given a 10-episode order to a new singing-competition series. Boy Band will feature singers competing with one another in a battle to join the next music-group sensation. No host or judges have been named yet, but insiders say that ABC is reaching out to several boy-band and girl-band members to host or judge.

FEWER WEB ADS - BUT SAME RESULTS Show this to the client who cut their TV budget to buy web ads. As of a few weeks ago, ads for JPMorgan Chase were appearing on about 400,000 websites a month. Now, as more and more brands find their ads popping up next to toxic content like fake news sites or offensive YouTube videos, JPMorgan has limited its display ads to about 5,000 websites it has preapproved, said Kristin Lemkau, the bank’s chief marketing officer. Surprisingly, the company is seeing little change in the cost of impressions or the visibility of its ads on the internet, she said. The full story can be found at WSJ.com

AVAILS Are you a master of selling “through” as well as selling “to”? Do you look to not just meet but beat goals and the market? Do you take pride in enabling and assisting the success of others? WIVB/WNLO TV in Buffalo NY seeks a National Sales Manager to sell our CBS/CW duopoly. The perfect candidate will be a self-motivated and success oriented individual in order to facilitate revenue generating negotiations with clients, firms and national advertising agencies. Must have a minimum of 5 years of experience in television sales. CLICK HERE to apply. EOE.

Account Executive: NBC 6 in Miami - Ft. Lauderdale has a great opportunity to join our local sales staff. This position is responsible for achieving NBC 6, COZI TV, New Business and Digital Platform sales goals. Responsibilities include developing and servicing advertising and marketing campaigns with local agencies and direct business, with an emphasis on the development of New Business and Digital revenue. Previous media sales experience in

broadcast, cable, radio, print or digital sales required. CLICK HERE for more info or to apply. Nexstar Broadcasting, Inc., Norfolk VA (WAVY TV-10 and WVBT FOX43 TV) is looking for a Sales Assistant to work with a high-performance sales team in the exciting environment of broadcast and digital advertising. Must be a good communicator and have a strong work ethic. This person will also serve as program coordinator and will maintain program schedules, respond to viewer calls and emails, plus complaints and critiques. To be considered for this job you must apply online at Nexstar Career Center. No calls. EOE/M/F/V/D WISC-TV in beautiful Madison, WI, is aggressively searching for a Traffic Coordinator to join our advertising support team. This position is responsible for ensuring the accurate input of television advertising campaigns, through log editing duties, order processing, and inventory management, maximizing revenue for both the company and our clients. It also serves as the primary back up for copy and for the Traffic Manager. To apply, send resume and salary requirements to [email protected]. For more info, visit our website at www.channel3000.com. EOE. NBCUniversal is launching a new Telemundo-owned station in San Diego, and is searching for a Sales Account Executive. The AE is responsible for delivering sales revenue, as well as cultivating and developing new advertisers for the station’s multi-platform properties. This position requires an individual with a keen ability to develop concepts to create, maintain and incrementally grow sales revenue by connecting a company’s marketing goals seamlessly with the entire portfolio of Telemundo San Diego’s content distribution platforms. Qualified applicants must APPLY HERE to be considered.

PLACE YOUR AD IN SPOTS N DOTS - CLICK HERE3/31/2017

Seth Meyers

President Vladimir Putin’s approval rating among Russians is above 80 percent. Of course,

that’s largely because he conducted the poll

in person.

Page 3: FCC CHANGES COULD EASE MORE MERGERS · 12.2 in 2015 to 12.3 in 2016. But that comes despite the loss of 1.2 million barrels formerly categorized as craft beers made by companies that

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

MAGNA FORECAST SAYS... Magna says ad revenue hit an all-time high last year in the U.S., growing 6.6% to $180 billion. So what’s ahead? Digital-based ad sales will grow double-digits to become the top media category in 2017, surpassing linear TV ad sales for the first time; $70 billion as compared to $67 billion total, national and local combined. The forecast suggests many large consumer brands will remain loyal to traditional TV campaigns as they feel national TV still provides good, measurable efficiency for both brand equity and retail sales. Where will ad growth come from? Telecoms, finance & pharmaceuticals. Magna predicts lower-than-average growth from technology and negative contribution from retail and automotive.

BUSINESS BYTES A new study called The Successful Integration of Food and Beverage within Retail Real Estate done by the International Council of Shopping Centers reports the amount of space dedicated to food in retail centers has grown from 5% in 2007 to 15% now, and the trend is expected to grow to 20% within the next eight years. The ICSC says the trend is due to two main factors: technology services (such as easier ordering and better operational efficiency in foodservice establishments) and the rise of an “experience economy,” fueled by millennials but adopted by all generations, in which enjoyable experiences have become more important than owning the latest product. The study suggests a strategy for placement of foodservice within retail space. The ICSC thinks 20% of foodservice should be dispersed, typically “refuel and relax” types such as coffee shops and ice cream or candy sellers, with 80% of stores to be clustered together such as fast food, fast-casual, and casual dining formats. Gourmet and finer dining restaurants are recommended for entry and exit points to draw in and retain maximum foot traffic.

(ROLLER) FOOD INFLUENCES GAS SELECTION A study done by the Association for Convenience & Fuel Retailing has found an increasing number of customers are making decisions about where to buy gas based on the quality of food at the gas station! Price, of course, remains the dominant factor in store selection, but with prices lower than a few years ago, even price has dropped seven percentage points as the reason for choosing a particular store. But 16% of drivers (up five points in just two years) say the quality of offerings inside the store is now their primary determinant of where to fill up. 42% of respondents say they go inside the store (up seven points in two years) for a number of reasons including paying cash, using the restroom, or buying food or a beverage. And the survey found 18-34s are most likely to buy a meal or sandwich, with 56% of people buying meals eating it once back in their cars.

AVAILS WAVY-TV10 and WVBT FOX43 in the Norfolk, VA market seeks a results-driven Account Executive. The ideal candidate will be a people person who is responsible for developing large-scale new business clients and growing digital revenue! Candidates should have a minimum 2 years of media sales experience, a winning attitude and a desire to succeed! Bachelor’s degree preferred with an emphasis in Business/Marketing or Communications. To be considered for this job you must apply online at Nexstar

Career Center. No calls. EOE/M/F/V/D WCTV Sales - Account Executive: Come to work with us in sunny Tallahassee, FL where the beach is close by and the weather is beautiful! If your passion is to help business owners grow their business by making the most of their marketing dollars, this job is for you. WCTV, Tallahassee’s legacy CBS affiliate and the most watched TV station in the

region for over sixty years is seeking experienced Account Executives to sell local television and digital advertising solutions. CLICK HERE for more info or to apply. EOE.

ECONOMIC NEWS Initial claims for unemployment fell slightly to 258,000 last week, the 108th straight week under the important 300,000 mark that’s considered to be the threshold of a healthy labor market. Although continuing jobless claims were up slightly, Marketwatch says generally there are fewer people collecting unemployment benefits than any time since 2000. Q4 Gross Domestic Product was finalized at plus 2.1%, a little higher than the 1.9% gain originally projected. Consumer spending was increased from the previously estimated 3.0% to 3.5%. And corporate profits were also encouraging, showing a small additional gain after a very strong 6% jump in the third quarter.

3/31/2017

James Corden

Congress voted to allow internet service providers

to sell their customers’ web data without permission.

I’ll just give all the viewers at home a moment to clear

their browser history.

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