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sales@spotsndots.com Copyright 2018.The Daily News of TV Sales Tuesday, August 21, 2018

SATELLITE SUB LOSSES REACH RECORD HIGH The companies we still think of as “cable TV providers” are increasingly less dependent on that line of business—and more on broadband. Data compiled for Q2 by Leichtman Research Group (LRG) again shows that big cable companies gained a number of broadband subscribers than far exceeded lost video subscribers. But the picture wasn’t so pretty for their telco and satellite competitors. LRG says the largest pay-TV providers in the U.S.—representing about 95 percent of the market—lost about 415,000 net video subscribers in Q2 2018, compared to a pro forma loss of about 660,000 in the year-ago period. “This marked the fewest net losses in the traditionally weak second quarter since 2014,” said LRG President Bruce Leichtman. Meanwhile, he noted, “The broadband industry added nearly twice as many subscribers in 2Q 2018 as in last year’s second quarter.” The top pay-TV providers now account for about 91.3 million subscribers—with the top six cable companies having 47.4 million video subscribers, satellite TV services 30.6 million, the top telephone companies 9.1 million, and the top Internet-delivered pay-TV services 4.2 million. “This newer segment of the industry has helped to mitigate overall pay-TV losses, while also contributing to a share shift from traditional services,” Leichtman says. “This shift is both a product of consumers opting for more economical services, as well as changes in providers’ strategies.” While the biggest cable companies lost a net 275,962 video subscribers in Q2, they gained 585,726 on the broadband side. So their video business shrank to 47.4 million, while broadband subs grew to nearly 63.9 million. Industry giant Comcast saw video subs fall by 140,000 to 22.1 million, while broadband subs increased by 260,000 to over 26.5 million. No. 2 Charter lost 57,000 video subs to 16.7 billion, but gained 267,000 broadband subs to 24.6 million. While net video sub losses for the major telcos were the fewest for any quarter since Q3 of 2015, they were still losses—a drop of 46,000 to 9.1 million. The one bright spot was AT&T U-Verse. It gained 23,000 video subs to nearly 3.7 million—despite the company’s decision to focus on its satellite business for video, where DirecTV actually lost 286,000 subs (the most for any quarter ever)—to end the quarter just below 20 million. AT&T is still the top telco provider of broadband, at nearly 15.8 million subs, but that was down 3,000 for the quarter. As a group, the major telcos lost 455,183 broadband subs in Q2 to 34.2 million as cable providers continued to dominate the market. Satellite provider Dish Network, which lacks a sister company to fill the broadband gap, lost a record 192,000

(Continued on page 3)

PAY-TV SUBS STILL DROPPING, INTERNET RISINGADVERTISER NEWS PepsiCo is acquiring at-home carbonated drink maker SodaStream for $3.2 billion, or $144 per share, a 32 percent premium to its 30-day volume weighted average price. The deal gives PepsiCo a new line through which it can reach customers in their homes rather than through stores. It comes as U.S. grocers are in a state of transformation, with 70 percent of shoppers expected to buy groceries online by 2025, according to Food Marketing Institute and Nielsen. “We get to play in a business — home beverages

— where we don’t play,” PepsiCo CFO Hugh Johnston told CNBC....Tyson Foods is buying chicken-nugget maker Keystone Foods for $2.16 billion, giving the meat and poultry marketer even more access to the restaurant industry and a bigger international

reach. Ad Age reports Tyson is trying to sharpen its focus on protein. Earlier this month, Tyson said it would sell its pizza crust business to an affiliate of private equity firm Peak Rock Capital. It sold its Sara Lee Frozen Bakery and Van’s businesses to private equity firm Kohlberg & Co. And in June, it expanded its poultry lineup, buying organic chicken producer Tecumseh Poultry. Its recent investments include funding for smaller protein-focused companies, Beyond Meat and Memphis Meats....Planet Fitness is joining entertainment and food services businesses in taking on leases left unsigned by legacy retailers. The company in the second quarter opened 44 new franchise locations, making for 1,608 stores across its portfolio, executives told analysts earlier this month. according to RetailDive.com...Walmart has teamed up with Anthem, one of the nation’s leading health benefits companies, to provide discounts on over-the-counter medications, products and services. The new Anthem-Walmart program, which will launch in January 2019, will enable consumers who are enrolled in Anthem’s affiliated Medicare Advantage (MA) plans to use OTC plan allowances to purchase OTC medications and health-related items, such as first aid supplies, support braces, and pain relievers at Walmart’s 4,700 stores and on Walmart.com...ChainStoreAge.com points out that more than 90% of American’s live within 10 miles of a Walmart store and the retailer is offering a number of services to ease consumers’ lives...Farfetch, the luxury online marketplace, on Monday filed to list its shares on the New York Stock Exchange, betting it will be more appealing to investors as a tech company than as a Website serving the tumultuous retail industry, reports Fortune.com... NationsRestaurantNews.com reports Blue Apron is adding diet meal kit options after a steep decline in second-quarter sales. The company is introducing its new September Whole30 meal kit option, which is said to be designed to ease meal planning and preparation for customers following the 30-day lifestyle program. Beginning Sept. 3 and continuing through the end of the month, the company will offer customers three Whole30 recipes each week.

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

NETWORK NEWS Mike Tirico has been named the new studio host for NBC’s primetime Sunday pregame show, Football Night in America. Tirico was reported to have been the leading candidate to succeed Dan Patrick, who told the New York Post in March that he turned down a new five-year contract to continue as host. Tirico will work alongside FNIA analysts Tony Dungy and Rodney Harrison, and NFL Insider Mike Florio. Having joined NBC from ESPN in 2016, this will be Tirico’s 23rd season as an NFL primetime studio host or play-by-plan voice… Reggie Lee has booked a major recurring role opposite Scott Bakula on the upcoming fifth season of CBS’ NCIS: New Orleans. Lee will play Assistant Special Agent in Charge Steven Thompson. The NCIS spinoff centers on the local field office of NCIS that investigates criminal cases involving military personnel in The Big Easy. Lee is a series regular on NBC’s Grimm... Esai Morales is set for a recurring role on the upcoming 10th season of NCIS: Los Angeles. Morales will play Deputy Director Gaines. Smart, authoritative, polished and trustworthy, Gaines accompanies a special prosecutor from the Department of Defense who is investigating the NCIS office and its employees. Morales was recently seen in a major arc on Netflix’s Ozark and as a recurring on Nat Geo’s Mars. Season 10 of NCIS: Los Angeles premieres Sunday, September 30th at 9 PM on CBS… Samantha Sloyan is set for a recurring role opposite Michael Irby on the upcoming second season of CBS’ SEAL Team. Sloyan played Dr. Penelope Blake on the 12th season of Grey’s Anatomy. She also had a major arc on Scandal, along with guest roles on Criminal Minds, Hawaii Five-O, Rizzoli & Isles and Parks and Recreation… The series finale of Shades of Blue failed to see any lift in the Sunday overnight ratings. The Jennifer Lopez-led NBC drama averaged a 0.6 rating in adults 18-49 and 3.2 million viewers at 10 PM, matching its season high in the demo. It was approximately even with its performance the prior week and only slightly above the show’s third season Live+Same Day average in both key measures… ABC has put in development The Thread, a half-hour modern ensemble comedy about a group of longtime friends, leading diverse, chaotic lives, who stay connected through a long running daily text thread. Through The Thread, these friends offer support, advice and ridicule, altering each other’s day-to-day life choices… The E.W. Scripps Company is acquiring two ABC-affiliated television stations owned by Raycom Media for $55 million. KXXV/KRHD in Waco, Texas, and WTXL in Tallahassee, Florida, are being divested as part of Gray Television’s acquisition of Raycom. With this deal, Scripps will own 17 ABC affiliates. The stations are market No. 86 (KXXV/KRHD) and No. 108 (WTXL). The acquisitions will expand Scripps’ holdings to 35 TV stations in 26 markets and increase its U.S. TV household reach to 18.5 percent... Gray Television says it has a deal to sell WSWG-TV, the CBS affiliate for the Albany, Georgia, television market to Marquee Broadcasting. Marquee currently owns television stations in Colorado, Georgia, Kentucky, and Maryland.

AVAILS WAVY-TV10 and WVBT FOX43 in the Norfolk, VA, market seeks a results-driven Account Executive. This experienced sales professional must have a winning attitude and a desire to succeed! Responsibilities include managing agency business, new business generation, client relationship building, proposal preparation and presentation to a diverse customer base. The position requires excellent communication, customer service, and

time management skills. To be considered for this job you must APPLY ONLINE. No calls. Pre-employment background & DMV check. EOE/M/F/V/D WHDH-TV in Boston seeks an Account Executive. The AE will generate new and service existing local accounts, ensuring all financial goals of TV station are being exceeded, while developing and maintaining relationships with agencies and clients.

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HERTZ NABS NIELSEN CFO Car-rental company Hertz has named Jamere Jackson, the former finance chief of Nielsen, to lead its finance team. Jackson will join the company on Sept. 10 to succeed Thomas Kennedy, who resigned to pursue the next stage of his career. Jackson’s exit comes less than month after Nielsen Chief Executive Mitch Barns announced his intention to retire at year-end, and as the company faces pressure from activist investor Elliott Management Corp. to sell itself.

DUELING SURVEY RESULTS ON RAISES We reported two weeks ago on a Harris Poll commissioned by CareerBuilder that found that 58 percent of employers expect to give raises to current employees this year. But now a survey by HR consultant Mercer finds that salary increase budgets for 2018 are only 2.8 percent—unchanged from 2017. “Unemployment is falling. Job openings are increasing. Employees are gaining confidence in the labor market. Yet, companies are still not investing in base salary, even though it’s the reward employees value the most,” said Mercer partner Mary Ann Sardone. “By continuing to hold the line on salary increase budgets, they risk losing their top performers to competitors who are spending more dollars to attract key talent because it’s easier to justify. It’s an investment issue that companies should reconsider as they look toward building their workforce for the future.”

8/21/2018

Conan O’Brien

Someone is suing Canada Dry Ginger Ale because it contains no ginger, so I’d like to formally announce my lawsuit against Panda

Express.

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

UNITED’S GLOBAL MEDIA, DIGITAL UP FOR REVIEW Campaign US, citing people with knowledge of the matter, says United Airlines is undergoing a review for its global media and digital businesses.Various WPP agencies, such as Wunderman and Wavemaker, work on the account. A spokesperson from Wavemaker confirmed the agency is participating in the review alongside other WPP shops. Campaign US learned that several other competitors are putting forward holding company solutions for the business. People with knowledge of the matter say the review is largely procurement-led. The current review does not affect creative, which is handled by McGarryBowen. United has been ramping up its in-house capabilities around video, Digiday said in a report earlier this year.

THE SELF-DRIVING CAR BLUES Here’s a paradox facing the auto industry: The more people become familiar with autonomous vehicle technology, the less they like it. The 2018 Cox Automotive Evolution of Mobility Study finds that self-driving vehicles are seen as less safe by consumers compared to two years ago. Recent high-profile accidents involving autonomous vehicles have cast a shadow on driverless appeal and software, but the accidents may only be slightly to blame for a change in consumer sentiment. Those unaware of fatal autonomous incidents are just as likely as those who are to believe roadways would be safer if all vehicles were operated by people as opposed to autonomous vehicles (54 percent versus 55 percent). Three-quarters of consumers say fully autonomous vehicles need real-world testing to be perfected, but 54 percent prefer this testing take place in a different town or city from where they live. The Society of Automotive Engineers currently recognizes five levels of vehicle autonomy, ranging from Level 0 (human-only control) to Level 5 (no human control). In a similar 2016 study from Kelley Blue Book, when survey respondents were asked to make a choice between the different levels, Level 4 autonomy hit the “sweet spot” by providing all the benefits of full vehicle autonomy without stripping away the option of driver control. Now attitudes around self-driving technology have reversed and the “sweet spot” has dropped to Level 2. Nearly half of consumers now say they’d never buy a Level 5 vehicle (49 percent, up from 30 percent in 2016).

PAY TV SUBS STILL DROPPING, INTERNET RISING(Continued from page 1)video subscribers in Q2 to end the quarter at 10.7 million. The two satellite companies combined lost 478,000 subs—the most ever for a single quarter—to fall to 30.6 million. The two satellite companies are having some success in curbing those sub losses with their fast-growing virtual MVPD services—which LRG notes are the only ones yet reporting subscriber numbers. Dish’s Sling TV added 41,000 subscribers in Q2 to surpass 2.3 million. And DirecTV Now added 342,000 to top 1.8 million.

AD SPENDING LAGS CONNECTED TV GROWTH Connected TV households now make up nearly three-quarters of all U.S. households, but those penetration levels don’t necessarily add up to a huge advertising market—yet. Despite the strong penetration of the market, connected TV advertising makes up only a sliver of overall TV advertising. The question to be answered: How quickly will that change? “The dynamics of connected TV advertising are challenging given fragmentation among platforms and other factors,” says eMarketer principal analyst Paul Verna. “But since consumer adoption of connected TV is faster than many

had expected, it seems only a matter of time before ad spending catches up.” In a new forecast package, eMarketer estimates there will be 182.6 million connected TV users in the U.S. this year, up 8.1 percent from 2017. That works out to roughly 55 percent of the population. At a household level, eMarketer estimates there are 88.7 million connected TV households in the U.S., or 71.6 percent of all households. A new forecast from Tru Optik says

U.S. ad spending on connected TV will total $8.2 billion this year, up roughly 75 percent from the $4.7 billion spent in 2017. And Tru Optik projects strong gains for the next two years, growing to $13.3 billion in 2019 and $20.1 billion in 2020.

ACCOUNT ACTIONS LVMH, the French luxury goods company, has moved its $400 million North American media account to Dentsu Aegis Network. The account had been at Havas Media for a decade… MediaPost reports that Peter Mayer, New Orleans, has been appointed AOR for Mississippi Gulf Coast Tourism following a review. There was no formal incumbent. The remit includes strategy, creative, media planning and buying, as well as some digital marketing components.

8/21/2018

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I think we should have a suggestion box at work but

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