www.cablespots.net Published Daily For Subscriptions, call 1-888-884-2630 [email protected] $300 Per Year Copyright 2019 Tuesday, May 26, 2020 NATIONAL TV AD REVENUES PLUNGE UP TO 50% IN APRIL ABSENCE OF LIVE SPORTS WEIGHS ON RESULTS ADVERTISER NEWS April, the first full month of COVID-19 disruption, witnessed It’s a tough Tuesday morning at Tuesday Morning, the major legacy TV network companies being hit with massive latest retailer on the brink of bankruptcy. The Wall Street 30% to 50% declines in national TV advertising revenues, Journal reports a filing may be imminent for the Dallas- Television News Daily reports. based home goods retailer, which has a $42 million loan During the month, major TV advertisers significantly re- payment due today. The home goods off-price retailer has duced advertising on primetime entertainment and other about 700 stores but shut down online sales seven years daypart programs. Contributing to the decline was a lack of ago due to low response… Although General Motors and live TV sports programming. other carmakers are looking to ramp up production of pickup WarnerMedia saw the biggest decline — down 50.8% in trucks, the supply chain needed to do so is not yet back to national TV advertising, according to Standard Media In- normal. There’s reportedly a shortage of parts coming from dex. Its networks such as TNT and TBS were hurt by the Mexico that’s slowed GM’s plans. It had hoped to re-start absence of regular-season NBA basketball and a second shift at plants in Fort Wayne, Ind., the Final Four and championship games of the and Flint, Mich., but the shortage of parts has NCAA Men’s Basketball Tournament. made that impossible… BJ’s Wholesale Club But it wasn’t all about sports. Among major was one of the winners during the COVID-19 entertainment TV networks, ViacomCBS was crisis: Total revenue rose 20.8% during the down 43% in advertising revenue in April for fiscal quarter that ended May 2, with net sales its CBS Television Network, and its cable networks. CBS up 21.1% and membership fees growing 8.4%. was also significantly down in March for not airing the early Net income was $95.7 million, up from $35.8 million last rounds of NCAA Tournament. year. BJ’s operates 218 clubs and 146 gas stations in 17 Fox Corp. sank 46%. In addition to its primetime entertain- states… Foot Locker, however, had results more typical of ment programming getting hurt, the network suffered due to contemporary retailers. Sales were down 43.4%, and that stoppage of Major League Baseball and NASCAR. Com- results in a glut in inventory, now at $1.46 billion, 20.4% more cast networks had 33% loss in advertising revenue. NBC than last year at this time. The company lost $98 million in would have aired NHL playoffs, which was to start April 8. the fiscal quarter this year, compared with a profit of $172 Walt Disney was down 33.3% in April, as ESPN, its big million a year ago… Likewise, Ross Stores lost $306 million sports TV network, had no NBA, Major League Baseball or during its fiscal Q1, after closing its 1,566 Ross Dress for other live sports programming. Less and 266 dd’s Discounts stores on March 20. It has Other general-interest TV groups such as Discovery’s ca- reopened about 700 locations and expects to have the rest ble TV networks declined 29.8% in ad revenue. “April 2020 open as quickly as allowed. The $306 million loss compares marks the first full month of an economic slowdown, the first with a $421 million profit last year, and 2020’s $1.8 billion in in over ten years,” says James Fennessy, chief executive sales is less than half of last year’s $3.8 billion… Chipotle officer of Standard Media Index. is offering a special e-gift card designed to be given to 2020 Only one of 12 major advertising categories SMI measures graduates. The chain will also match 10% of purchases to didn’t report year-over-year percentage double-digit declines be donated to the Scholarship America organization… Lidl in ad revenue in April: Pharmaceutical marketers were up will open its 100th U.S. store in Suwanee, Ga., this week, 4%, largely due to more spending on TV news programming, reaching the century mark in less than three years since its which had higher viewership because of the pandemic. introduction in the U.S. It recently opened a new distribution facility and now does business in nine East Coast states, BRACE YOURSELF FOR THE MAY JOBS REPORT with eyes toward continued expansion, in existing states State reopenings have not yet helped stem the rise in un- as well as expanding its geographical footprint. Low-price employment, which is expected to show another big jump in competitor Aldi, now up to almost 2,000 U.S. stores in the month of May, CNBC reports. 36 states, expects to add another 500 stores by the end Weekly jobless claims totaled 2.4 million for the week end- of 2022. Meanwhile, grocery prices rose 2.4% in April, the ing May 16, bringing the total since late March to 38.6 million. largest increase since 1974, according to the Bureau of For the week of May 9, continuing unemployment claims, Labor Statistics’ Consumer Price Index… Hertz, which reflecting people who collected benefits for multiple weeks, started with a fleet of a dozen Model T’s in 1918, has now rose to 25.1 million, a week-over-week rise of 2.5 million. filed for bankruptcy protection. Its revenue had been up 6% Jefferies economists say their model now suggests 10.3 for the first two months of the year. But with about 700,000 million jobs will be lost when the government reports the May vehicles now mostly unused, it was unable to meet a lease employment report on June 5, but they are not yet forecast- payment that was due last month for some of its vehicles. ing that number and are awaiting more data. In April, 20.3 The company, which also owns the Dollar and Thrifty million jobs were lost and the unemployment rate rose to brands, intends to continue operations and try to avoid a 14.7% from 4.4%. forced liquidation of its vehicles. CABLENET CHATTER AUTO-BUYING INCENTIVES COULD SOON EASE After a towering ratings success on the Michael Jordan After uncorking a flurry of discounts when the economy was 10-part documentary The Last Dance, ESPN is working with cratering, automakers are going back to the drawing board Tom Brady and Religion of Sports on Man In the Arena, a on their incentive strategies as demand rebounds and some nine-episode multi-platform series coming in 2021. The focus dealers’ inventory shrinks to historic lows, Automotive News will be on another GOAT (Greatest of All Time) for his sport: reports. Brady himself. The series will be Brady’s firsthand account of As vehicle production ramps up after a two-month shutdown, the most iconic moments of his NFL career, including each automakers will reassess incentive programs that largely of his nine Super Bowl appearances as quarterback of the expire June 1. Analysts expect automakers, heading into the New England Patriots. Also in there will be smaller, seem- summer selling season, to shift their focus to cash rebates ingly insignificant instances that became pivotal events and and discounts targeted to specific models and regions paved the path of the future Hall of Famer’s journey, which with sufficient inventory while backing off the wide-ranging takes a new chapter after his move to the financing deals that helped sell pickups Tampa Bay Buccaneers... The Staten Is- and SUVs in April and May. land vampires will rise again after FX or- Even without incentives, analysts say, dered a third season of What We Do In there is plenty of natural demand in the The Shadows. The network has ordered If there is a scandal involving retail market again. “The way that the a third run of the show ahead of the June Christina Applegate, what COVID economic impact has hit the 10 finale of its second season. FX said would they call it? population has been disproportionate,” that the second season, which is averag- said Eric Lyman, chief industry analyst ing 3.2 million total viewers across linear at vehicle listings site TrueCar. “It hasn’t and digital platforms, including FX on impacted the group of buyers that are Hulu, through its first six episodes, was Conan O’Brien commonly found in new-vehicle sales up 25% on Season 1. The mockumentary and late-model [used]-vehicle sales.” series, which is based on Jemaine Clem- Even automakers that don’t typically ent and Taika Waititi’s 2014 feature film, offer generous incentives stepped up stars Matt Berry, Kayvan Novak, Natasia Demetriou, Har- their spending this spring. Non-Detroit 3 automakers have vey Guillén and Mark Proksch. It follows the lives of four increased the value of incentive programs by nearly $1,000 vampires who’ve “lived” together for hundreds of years in the per vehicle, or 40%, since early March, said Tyson Jominy, New York borough... Adult Swim has picked up a second vice president of data and analytics for J.D. Power. season of comedy Tuca & Bertie, the animated series that was cancelled last year at Netflix. The network has greenlit a MAGID: ‘MOST FAVORABLE’ COVID-19 RESPONSES 10-episode Season 2, with the option for more. The comedy Shoppers named Amazon, Costco Wholesale, stars Tiffany Haddish and Ali Wong and revolves around Walmart, Publix and Kroger as the top retailers in terms the friendship between Tuca (Haddish), a cocky, carefree of their response to the coronavirus pandemic, according to toucan, and Bertie (Wong), an anxious, daydreaming song- consumer market research firmMagid , whose findings were bird. The series also featured the voice of Steven Yuen and reported by Supermarket News. guest performers Nicole Byer, Richard E. Grant, John Amazon led all food retailers, with 30% more customers Early, Reggie Watts, Tig Notaro, Amber Ruffin, Jermaine saying they feel more favorable about its COVID-19 response Fowler and Tessa Thompson, among others. than those who feel less favorable about its efforts, according to the May 2020 Magid Food & Beverage Consumer CONSUMERS LOSE $3B A YEAR ON GIFT CARDS Insights Tracker, which polled 1,000 shoppers. The U.S. is the world’s biggest market for gift cards — by The only other retailers with a more favorable differential of a long shot, CNBC reports. The plastic cash substitute has at least 20% were Costco (+25%), Walmart (+22%), Publix been the most popular holiday item for 13 years in a row. (+21%) and Kroger (+21%). Five other retailers had a more In 2019 alone, U.S. consumers loaded up on gift cards from favorable differential of 19% for their coronavirus measures, brands like Starbucks, Amazon and Home Depot to the including BJ’s Wholesale Club, Meijer, Whole Foods tune of about $98 billion — a 90% increase from 2005. But Market, Target and Trader Joe’s. a lot of that money is winding up at the bottom of dresser Respondents in Magid’s latest tracker, who were surveyed drawers and forgotten in wallets. in early May, were asked how well retailers selling groceries Gift cards are usually spent within the first year from the and/or household supplies adapted to higher demand, busier date of purchase. But if you’re one of those who has sat on a stores and health concerns since the COVID-19 outbreak. gift card for longer than 12 months, you’re not alone. About 2% to 4% of gift card money goes unused every year. THIS AND THAT That adds up to $2 billion to $4 billion — just in the U.S., ac- Amazon’s Prime Day will be in September rather than July cording to Mercator Advisory Group. as the company copes with demand related to the pandemic, For consumers who prefer having cash on hand instead sources tell The Wall Street Journal. The company is said of shopping, online sites like Cardpool and Raise sell un- to be shifting slowly back to its pre-pandemic business wanted gift cards. The resale value generally ranges from operations and shipping a wider variety of products, but fast below 70% to more than 90%, depending on the popularity delivery reportedly may not return for months... Retailers of the card. announced 114,327 job cuts January through April in 2020 as they closed stores amid the COVID-19 crisis. It’s PAGE 2 the highest annual total on record, according to global outplacement and executive coaching firm Challenger, Tuesday, May 26, 2020 Gray & Christmas. It shatters the previous high of 100,518 www.CableSpots.net cuts announced by retailers in all of 2003.