News Highlights Currently Filtered by Quarter/Year:
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Retail posts surprising increase in February
Retail sales posted a surprising increase in February as consumers did not let major snowstorms stop them from racking up purchases. The advance, the biggest since November, provided hope that the recovery from the Great Recession is gaining momentum.
Some economists cautioned, though, that spending increases will remain modest as long as wages stay flat and job creation weak.
(From: Associated Press, March 12, 2010)
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Internet trumps broadcasting, says former FCC Chairman
Former FCC Chairman Reed Hundt gave a speech at Columbia University in which he candidly talks about his decision to promote the Internet over broadcasting as the one and only "common medium" for the United States while he was chairman of the FCC between 1994 and 1997. And he said the FCC National Broadband Plan to be released next week will be the clumination of that policy and the beginning of the end of the broadcasting era.
(From: TVNewsCheck, March 12, 2010)
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FCC says retransmission consent process is under active consideration
The FCC chairman says television's retransmission consent framework has been under "active consideration" since New Year's Day.
(From: B&C tvfax, March 11, 2010)
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Media companies reporting uptick in auto ad spending
Numerous media companies have been reporting an upturn in auto advertising, reversing a severe decline during the national recession. The analysts at Wells Fargo Securities say this could be good news for pretty much all types of traditional media outlets.
(From: TVBR Television Business Report, March 11, 2010)
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NAB says retransmission consent process is not broken
Countering cable and satellite operators' campaign to weaken broadcasters' hand in negotiations for retransmission consent payments by modifying FCC rules governing the process, NAB TV Board Chairman Paul Karpowicz is telling lawmakers that no changes are necessary.
In an open letter to key members of Congress, Karpowicz says the FCC has already thoroughly reviewed the retransmission consent process and concluded that it works just fine.
(From: TVNewsCheck, March 11, 2010)
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Cable coalition petitions FCC regarding retransmission consent process
Time Warner Cable Tuesday
filed a petition at the FCC with a coalition of cable operators
and others asking the FCC to reform the retransmission
consent process.
The petition is asking for independent arbitration during
retrans disputes and interim carriage during that arbitration.
(From: B&C tvfax, March 10, 2010)
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Local TV and radio revenues to continue their contraction this year
Expect local television and radio revenues to continue their contraction until next year and then inch up for the next three years. All this will occur as local digital revenues will steadily and sharply rise. BIA/Kelsey puts local ad rev growth for traditional media at $34.3 billion in 2014 -- a 2.8% compound annual growth rate.
(From: Media Daily News, March 10, 2010)
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More retransmission consent battles on the horizon
The AP says we should watch for more battles, like the
one between ABC and Cablevision last weekend, over
retrains fees in the coming months. Why? “There’s a lot
of money at stake,” said Robin Flynn, an analyst at SNL
Kagan. “There are a lot more fights coming up.”
(From: Associated Press, March 9, 2010)
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Import cargo volume up 13% in March
Import cargo volume at the nation’s major retail
container ports is expected to be up 13% in March
compared with the same month last year, and double-digit
increases are expected to continue through the summer
as the U.S. economy begins to improve,
according to the monthly Global Port
Tracker report from the National Retail
Federation and Hackett Associates.
(From: spots-n-dots, March 9, 2010)
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Satellite license extension approved
Both the House and Senate were able to approve
an extension (H.R. 4691) for the satellite license (as
part of a package of extensions that included health and
unemployment insurance benefits) as a stand-off ended
with a recalcitrant Senator.
The license allows satellite operators to import distant
TV station signals to subscribers in markets where they
cannot get a viewable signal of their own
(From: B&C tvfax, March 8, 2010)
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Tax refunds to go towards major purchases for some households
According to a survey from the National Retail
Federation (and reported by the New York Times) nearly
13% of people expecting a refund this year plan to treat
themselves or their families to a major purchase like a new
television, new furniture or a new car, up from 11% last
year.
(From: New York Times, March 8, 2010)
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Unemployment rate stays at 9,7%
The American economy lost 36,000 jobs in February,
and the unemployment rate stayed steady at 9.7%,
according to the Labor Department.
(From: spots-n-dots, March 8, 2010)
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GM reverses decision to close 661 franchises
General Motors
has reversed its decision to close 1,160 dealerships and
has put local operators on notice — it will keep 661
franchises alive.
(From: spots-n-dots, March 8, 2010)
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Dish Network may have to deactivate 8 million DVRs
A U.S. Appeals Court upheld an earlier decision by the Federal Circuit court that found Dish Network guilty of patent infringement for using Tivo’s "Time Warp" technology in its well-received DVRs. The ruling paves the way for Tivo to receive some $300 million in damages and contempt sanctions and may lead to Dish having to deactivate 8 million DVRs this year.
(From: Cynthia Turner's Cynopsis: Digital, March 5, 2010)
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GM terminates three Cadillac marketing executives
General Motors Co. terminated three U.S. marketing executives as part of this week's management overhaul. Cadillac's Steve Shannon and John Howell were dismissed Monday, said eight sources familiar with the moves. Jay Spenchian, an executive director who worked on Cadillac and other brands, was also let go, the sources said.
(From: Automotive News, March 5, 2010)
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FCC asked to impose itself into retransmission consent system
Prompted by his concerns that New York viewers
could lose access to the Academy Awards and other
WABC-TV programming, Rep. Eliot Engel (D-NY) has
asked the FCC to step into the retrans fray, citing what he
says is a “lack of oversight over the retransmission consent
system [that] has allowed an increasing number of
these disputes.”
He called viewers pawns in a game of dividing up millions
of dollars between the two companies. “Sadly, it is no
coincidence that this deadline coincides with the morning
of the Oscar broadcast, annually one of the most-watched
programs. Again, the consumer winds up held hostage as
a result,” he said.
(From: B&C tvfax, March 5, 2010)
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Retail sales in February slow due to snow storms
February snow storms on the East Coast
and Midwest chilled retail sales during the month, says
MasterCard Advisors’ SpendingPlus. Still, some
sectors saw significant increases, including electronics
(+5.8% compared with February 2009), luxury items
(+15.2%) and online sales, which probably benefited from
the bad weather (+16.7%). The good news? “Retailers
seem not to have needed extreme discounting to drive
traffic,” said the researcher.
(From: spots-n-dots, March 4, 2010)
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Companies planned fewest job cuts since 2006
Companies planned the fewest job cuts since 2006 in
February, according to Challenger, Gray & Christmas, a
Chicago firm that tracks how many people businesses
say they plan to lay off. “Most economists agree the
recovery is well underway,” said CEO John
Challenger.
(From: spots-n-dots, March 4, 2010)
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Unilever says ads most move beyond 30-second spot
Kathy O'Brien, Unilever's VP, personal care, says Unilever's creative agencies need to "move past their reliance on the 30-second spot" and focus more on social media efforts to keep up with modern consumers. "It's going to painful," she adds
(From: Adweek, March 3, 2010)
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Political spending not spread evenly across all markets
It's widely expected that political candidates and advocacy groups will spend a boatload of cash on TV advertising this year — as much as $2.7 billion.
What's less known is that 61 of the 210 TV markets will get more than their fair share of that spending with the biggest winners in states where there are both gubernatorial and Senate races, according a Borrell Associates analysis for TVNewsCheck. "There's almost an embarrassment of riches," says Jennifer Duffy, senior editor at The Cook Political Report. "There are 36 Senate races and 37 governors' races in this cycle. And in 27 of those states, there are both."
(From: TVNewsCheck, March 3, 2010)
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Automotive sales rose 13% over last February
Despite some analysts’ predictions of single-digit gains,
automotive sales rose 13% over last February and all major
automakers except Toyota reported higher U.S. sales.
Toyota’s U.S. market share fell to 12.8%, its lowest level
since July 2005, according to Ward’s AutoInfoBank. The
automaker’s U.S. sales fell 9% last month, besting some
analysts’ predictions that its sales would fall
by double digits.
(From: spots-n-dots, March 3, 2010)
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GM car sales grew 11.5% in February
General Motors Co. says its February sales rose 11.5% compared with the same month last year thanks to new models and pent-up demand from rental car companies and other fleet buyers.
(From: Associated Press, March 2, 2010)
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GM to recall 1.3 million cars for steering problems
General Motors Co. said Monday it will recall 1.3 million Chevrolet and Pontiac compact cars sold in the U.S., Canada and Mexico to fix power steering motors that can fail.
The recall affects 2005 to 2010 Chevrolet Cobalts, 2007 to 2010 Pontiac G5s, 2005 and 2006 Pontiac Pursuits sold in Canada and 2005 and 2006 Pontiac G4s sold in Mexico.
(From: Associated Press, March 2, 2010)
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New sales rules to be tested by three major station groups
Three major station groups and a trio of large advertising agencies will embark on a trial this year that could bring dramatic changes to the way national spot TV time is bought and sold.
Gannett Broadcasting, Hearst Television and NBC Stations are working with Horizon Media, TargetCast and Universal McCann to test revisions in four fundamental business practices.
Participating companies will negotiate national spot TV buys on a cost-per-thousand basis, dumping the decades-old currency of cost-per-point. They will also enforce a 30-day cancellation rule, preventing advertisers from dropping campaigns mid-flight with what often amounts to only two days’ notice. Participating stations will stop making HRA, or “higher-rate-advertiser” preemptions, eliminating the long-time practice of bumping an advertiser to make room for one that booked later but agreed to pay a higher price. Stations will also guarantee delivery.
(From: TVNewsCheck, March 2, 2010)
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Consumer spending rose more than expected in January
Consumer spending rose by a larger than expected
0.5% in January, according to the Commerce Department.
But incomes were up by only 0.1%, much less than had
been forecast, leading to concerns that the rate of spending
will not be sustainable.
(From: spots-n-dots, March 2, 2010)
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Magazines launch jointly-funded ad campaign
Following a drop over 25% in ad revenue from print magazines last year, a group of prominent magazine publishers including Time Inc., Hearst, Conde Nast, Meredith and Wenner Media are launching a jointly-funded $90 million dollar ad campaign to help convince readers, advertisers and shareholders of the "power of print."
(From: Cynthia Turner's Cynopsis: Digital, March 2, 2010)
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Ad clients exhibiting cautious optimism about the economy
“Looking forward, economic conditions
appear to have stabilized, clients are beginning to re-focus
on their brands and the tone of the business
is one of cautious optimism,” said Interpublic Group
Chairman and Chief Executive Michael
Roth.
(From: spots-n-dots, March 1, 2010)
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Networks look at contextual advertising
Some of the broadcast networks have started custom ad content divisions, which work with advertisers, their media buying agencies and their creative agencies to create specialized commercials that can relate to the show they will air in.
(From: MediaWeek, March 1, 2010)
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GM to shake up its U.S. sales and marketing management structure
General Motors Co. will again shake up its U.S. sales and marketing management as early as this week, three people familiar with the plan say. GM will create a divisional reporting structure that separates sales and marketing. Chevrolet, Cadillac and Buick-GMC will each have a marketing boss and a sales leader.
(From: Automotive News, March 1, 2010)
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Fox wants piece of affiliates' retrans fees
Count Fox as another network looking for affiliates to pay it to carry shows such as American Idol and 24. On Friday, Mediacom CEO Rocco Commisso said Fox is in the game. Cable operator Mediacom signed a recent deal with Sinclair Broadcasting, where its length was influenced by Fox's aim to receive the payments, Commisso said on an earnings call.
(From: MediaPost, March 1, 2010)
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Satellite bill extended through March
According to a draft of a Senate bill extending the deadlines
on a number of items, the extension passed last year
moving the sunset deadline for the satellite bill from Dec. 31
to Feb. 28, would be moved to March 28.
(From: B&C tvfax, February 25, 2010)
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Ad spending fell 9% in 2009
In the wake of a tough advertising market, only three of 19 media categories made meaningful gains in 2009 versus the year before: Cable television, Spanish-language cable TV and free-standing insert coupons. Overall ad spending sank 9%.
(From: Media Daily News, February 25, 2010)
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GM to discontinue Hummer brand
General Motors says it will discontinue Hummer after its bid to sell the brand to a Chinese company failed.
(From: Associated Press, February 24, 2010)
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C-SPAN says court should overturn must-carry rules
C-SPAN is
joining Cablevision in asking the Supreme Court to overturn
the must-carry rules, which require cable operators to
carry local TV stations that elect not to negotiate carriage.
(From: B&C tvfax, February 24, 2010)
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Consumer confidence takes a plunge
Consumer confidence took a surprisingly sharp drop
in February, falling 11 points to an Index of 46 from January’s
56.3, says the Conference Board. Analysts had expected
a slight decrease to 55. The 46 index was the lowest since
April of last year and indicated, said a Conference Board
spokesperson, that “fewer consumers are anticipating an
improvement in business conditions and the job market
over the next six months.”
(From: The Conference Board, February 24, 2010)
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Congress must act this week on satellite reauthorization bill
Congress this week must either vote on the
satellite reauthorization bill, or on another extension. Failing
that, lots of satellite subscribers will lose their networkaffiliated
TV stations come March 1.
(From: B&C tvfax, February 23, 2010)
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Economy will grow steadily over next two years, says NABE
The consensus of the members of the National
Association for Business Economics is that the economy
will grow steadily over the next two years as businesses
grow and jobs return. A NABE panel says it expects a 3.1%
growth in the economy in both 2010 and 2011 and predicts
a 2.2% increase in consumer spending this year and a 2.8%
rise in 2011.
(From: spots-n-dots, February 23, 2010)
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Radio ad revenue declined 18% in 2009
Total fourth-quarter radio advertising revenue came to about $4.3 billion, while ad revenues for the full-year 2009 topped $16 billion -- representing an 18% decline from 2008.
(From: Media Daily News, February 22, 2010)
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Local ad spending not expected to grow until 2012
Advertising spending on local media is not expected to grow until 2012, according to a forecast released today by BIA/Kelsey. By 2014, the U.S. local advertising market will reach $144.9 billion, a modest compound annual growth rate of 2.2% from 2009.
(From: MediaWeek, February 22, 2010)
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CBS expects higher upfront prices
With about three months to go before the ad industry's biggest marketplace -- upfront ad sales for the coming broadcast TV season -- gets underway, CBS Corp.'s chief executive is predicting the company can reel in solid increases in the prices advertisers pay.
(From: Advertising Age, February 19, 2010)
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Packaged goods companies to spend more in marketing
To fend off private label competition, Kraft, P&G and General Mills plan to increase investments in advertising, in-store and coupons.
(From: Advertising Age, February 19, 2010)
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Digital coupons could lead to decline in newspaper inserts
Digitally delivered coupons are growing fast while printed newspaper inserts are increasingly threatened. The findings of two surveys suggest newspaper coupon inserts could be in danger of experiencing the same long-term decline that has afflicted print classifieds.
(From: Media Daily News, February 18, 2010)
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Housing starts higher than expected in January
Housing starts were up more than expected in January,
a sign, says Bloomberg News, that the tax credit is helping
stabilize the real estate market. Starts rose 2.8% from
December, according to the Commerce Department.
(From: spots-n-dots, February 18, 2010)
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Ad executives willing to pay more for addressable advertising
Targeted and interactive TV advertising will lay the
foundation for the long-term recovery of U.S. ad spending,
while spending on broadcast network TV will return to
pre-recession levels this year, leading the more immediate
recovery, according to the report, Advertising Outlook:
Shifting Dollars. The study, from international research
firm Parks Associates features a survey of
U.S. advertising and media executives and
found this group optimistic about 2010 ad
spending as well as the long-term impact
of advanced advertising formats. A majority
would pay a premium for addressable TV
ads, with almost 40% willing to pay upwards of 20% more
over traditional TV ads.
(From: spots-n-dots, February 18, 2010)
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U.S. light-vehicle sales will reach almost 12 million units in 2010
“U.S. light-vehicle sales will reach just short of
12 million units in 2010 as credit becomes more available
and consumer confidence improves with rising
employment,” said Paul Taylor, chief economist
for the National Automobile Dealers Association.
(From: spots-n-dots, February 17, 2010)
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Local media to lose share to national
Barclays Capital estimates that total 2010 US advertising will increase 3.5% (vs. its earlier estimate for flat) to $167.6 billion. It is particularly bullish on national advertising. “While ad-supported media faces a few longer-term structural questions given the impact of digital technology on ad pricing, we believe there is a transformative ‘Wal-mart effect’ taking place in media that structurally favors national advertising, as the impact of scale disparity in corporate America has a gradual structural impact on multinationals’ advertising & marketing strategies,” analysts DiClmente and Hawkey said. Long-term, they see local media losing share to consolidated national media budgets.
(From: TVBR Television Business Report, February 16, 2010)
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Economists pretty optimistic about the future
Some 62 economists polled this month by Bloomberg
News seem pretty optimistic about the future. On average,
they predict a 3% growth in the economy this year and say
the jobless rate, which got as high as 10.1%, a 26-year
record, will end the year at 9.5%. Joblessness is expected
to hit 9.1% in 2011, still high but going in the right direction.
(From: spots-n-dots, February 12, 2010)
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Congress unveils legislative "fix" for campaign finance
As promised, Sen. Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-Md.) have unveiled a legislative "fix" for the Supreme Court's decision in the Citizens United case that includes enhanced ad disclaimers and lowest unit rate requirements.
That was the decision to allow direct corporate and union funding of campaign TV and radio ads in the run-up to primaries and elections, one which Schumer and Van Hollen pilloried soon after its release.
"We have a multipronged approach to restrict the corrosive influence of special interests and to ensure that corporate activities in campaigns are fully disclosed to the public," said Van Hollen said Thursday in announcing the "legislative framework."
(From: B&C tvfax, February 12, 2010)
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Toyota rivals have rare opportunity to take back market share
With Toyota stumbling as it recalls more than eight million vehicles for problems, its rivals are seeing a rare opportunity to take back some market share.
(From: New York Times, February 11, 2010)
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New federal childhood obesity task force created
Look for
food marketing to get renewed scrutiny in Washington.
President Obama Tuesday (Feb. 9) announced the creation
of a childhood obesity task force and gave it 90 days
to come up with an action plan and “a generation” to solve
the problem through a “coordinated federal response.”
(From: B&C tvfax, February 10, 2010)
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Ad pages up 41% in Q1 2010
The Publishing Group of America -- which publishes newspaper-distributed magazines, including American Profile, Relish, and Spry -- revealed that ad pages are up 41% in the first quarter compared to the same period in 2009.
(From: Media Daily News, February 10, 2010)
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Newsstand sales fell 10% in second half 2009
A survey of circulation data for 115 leading consumer magazines from the most recent Audit Bureau of Circulations report revealed that total newsstand sales for the group fell 10% between the second half of 2008 and the second half of 2009.
(From: MediaPost, February 9, 2010)
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TV ad revenue in 2013 will be less than in 2006
Though the advertising share of revenues from digital and retransmission fees will grow in the coming years, overall ad dollars for TV stations will still be $3 billion less in three years than they were in 2006. A recent report from SNL Kagan says overall TV station revenue will be $21.7 billion in 2013 -- against the $24.6 billion take in 2006.
(From: MediaPost, February 8, 2010)
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Toyota pulls ads from ABC affiliates in five southeastern states
Toyota dealers in five southeast states have pulled their commercials off local ABC affiliates, complaining about the coverage of Toyota safety problems by ABC News and its chief investigative correspondent Brian Ross. The ad agency representing the 173 dealers told ABC affiliates last week that the shift was due to "excessive stories on the Toyota issues."
(From: ABC News, February 8, 2010)
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Marketers threaten to pull back on TV spending
Even as major marketers once again threaten to pull back on TV spending -- a new survey indicates they will allocate only 41% of their budgets to the medium this year -- the TV networks are gearing up for an "upfront" ad-sales market they expect will be more robust than in the recent past.
(From: Advertising Age, February 8, 2010)
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Toyota will recall 270,000 Prius hybrid vehicles
Toyota will recall 270,000 Prius hybrid vehicles over brake problems in the United States and Japan, a report said Friday, while the beleaguered auto giant launched an investigation into possible problems with the brakes in two more hybrids including the luxury Lexus.
(From: Associated Press, February 5, 2010)
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$4.2 billion in political ad spending this year, says Borrell
Declaring the birth of "the endless campaign," Borrell Associates predicts that the growth of issue advertising and a recent Supreme Court ruling have changed the pattern of political ad spending in the U.S., erasing the peaks and valleys of the on- and off-year forecasts of the recent past and replacing them with a more even, continuous outlay. This year, candidates and issue advertisers will spend a record $4.2 billion on advertising, with TV stations commanding "the lion's share" and the Internet garnering only 1% of outlays, according to a new Borrell report. Almost three-fourths of the total will be spent locally, the report says.
(From: TVNewsCheck, February 5, 2010)
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January retail sales better than expected
It was generally good news for the nation’s retailers in
January as shoppers continued to come out and purchase
everything from clothing to electronics.
(From: spots-n-dots, February 5, 2010)
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Consumer confidence survey results drop
RBC CASH Index., a regular measure of consumer attitudes towards the economy, took a plunge, dropping from January's reading of 58.3 all the way down to 39.4, a loss of 18.9 points. The baseline is 100, reflection conditions at the time of the surveys introduction in January 2002.
(From: TVBR Television Business Report, February 4, 2010)
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Toyota posts Q4 earnings
Toyota Motor Corp. returned to profit in the October-December quarter and raised its annual earnings forecast, but analysts warned of a grim outlook as a spreading safety crisis batters the automaker's reputation.
(From: Associated Press, February 4, 2010)
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News Corp.'s O&Os completing retrans deals
News Corp. COO officer Chase Carey said that the media giant is on the cusp of a retransmission-consent revenue windfall that could ultimately fix the broken broadcasting model. On a conference call with analysts to discuss its fiscal second-quarter results, Carey said that News Corp.'s O&Os have completed retrans deals with two of the top 10 distributors.
(From: Multichannel News, February 3, 2010)
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Higher fleet sales drove January light-vehicle sales to a 6% gain
Higher fleet volume drove January U.S. light-vehicle
sales to a modest 6% gain over a deeply depressed market
a year earlier, according to Automotive News.
The increase was powered by revived purchases by
rental car companies which had dropped out
of the market a year earlier due to tight credit
and concerns about a deepening slump in the
economy.
(From: Automotive News, February 3, 2010)
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January auto sales expected to improve over last January
January is typically a weak month for U.S. auto sales, but automakers were expecting sales to improve over last January, when they dipped to a 26-year low because of the tough economy. Sales never really recovered last year, totaling 10.4 million cars and light trucks, the lowest since 1982.
(From: Associated Press, February 2, 2010)
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Restaurant Performance Index climbs
The National Restaurant Association reports that its
monthly Restaurant Performance Index, based on a
combination of actual results and operator optimism, hit a
22-month high in December.
The index is based on a scale of 100, with anything
over that signifying growth. The index hit 98.7 in December,
up 0.9 points from November and very close to the point
where growth can be expected. But the result also signified
the 26th consecutive month of contraction.
(From: spots-n-dots, February 2, 2010)
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$14.1 billion to be spent on Valentine's Day gifts this year
The National Retail Federation projects that
Americans will spend aout $14.1 billion on Valentine’s Day
this year, up just slightly from 2009.
(From: spots-n-dots, February 2, 2010)
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Ford subsidizing 100% of dealer ad budgets
Ford is subsidizing the entire advertising budget of its
dealers who mention in their ads that the automaker is the
only one of the Big 3 not to take any government bail-out
money, says Automotive News. Typically the automaker
reimburses 50% of those costs.
(From: Automotive News, February 2, 2010)
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Super Bowl sold out, says CBS
Ad time for the Super Bowl is sold out, according to the top ad-sales executive at CBS, the network broadcasting the contest this year on Feb. 7.
(From: Advertising Age, February 2, 2010)
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GDP grew 5.7% in Q4
The US gross national product (GDP) grew at a robust
5.7% in the fourth quarter, reports the Commerce
Department. It’s the fastest rate in over six years and the
second consecutive quarter of growth--third quarter was
up 2.2%. Consumer spending rose at an annual rate of
2.2% in the period, better than analysts had expected.
(From: spots-n-dots, February 1, 2010)
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AT&T's telco TV service adds new customers
AT&T's telco TV service added more than 1 million net new customers in 2009, continuing a growth rate that is moving it up the charts of TV distributors. Verizon's FiOS, which has more customers than U-verse, saw net adds slow in the fourth quarter.
(From: Media Daily News, February 1, 2010)
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Toyota facing hit to brand image and reputation
Toyota Motor Corp. is facing a multi-billion-dollar hit to its brand image and reputation for high quality in the wake of its disastrous recall and sales halt of an unprecedented 2.3 million vehicles over eight models.
(From: Advertising Age, February 1, 2010)
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2010 ad revenue will not exceed conservative expectations
Jack Myers stated that, while there are indications the economy is picking up, including positive fourth quarter results from Ford, Procter & Gamble and Colgate,there are no clear indications the advertising component of the media business will exceed conservative expectations for 2010.
(From: JackMyers Media Business Report, February 1, 2010)
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Cablevision asks Supreme Court to review must carry rules
As promised, Cablevision has asked the Supreme Court to review the constitutionality of the must-carry rules, which require cable operators to carry local television stations.
(From: Broadcasting & Cable, January 29, 2010)
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P&G says increased marketing support led to improved sales
Procter & Gamble, the world's largest advertiser, reiterated Thursday that it will ramp up ad spending between now and the end of June, while increased marketing support led to improved sales in its most recent quarter.
(From: MediaPost, January 29, 2010)
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Toyota dealers could lose $2.5 billion in monthly revenue
U.S. dealers who sell Toyota Motor Corp.'s namesake brand could lose as much as $2.47 billion in combined monthly revenue because of the halt of sales of eight models, including the popular Camry and Corolla sedans. The 1,234 Toyota brand dealers would miss out on $1.75 million to $2 million a month in revenue from new and used versions of the models that aren't allowed to be sold, said John McEleney, chairman of the National Automobile Dealers Association.
(From: Bloomberg, January 29, 2010)
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Ford posts 2009 profit
Defying economic conditions that sent its U.S. rivals into bankruptcy court, Ford Motor Co. clawed its way to a $2.7 billion profit in 2009 and expects to stay in the black in 2010. It was the automaker's first annual profit in four years.
(From: Associated Press, January 28, 2010)
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Auto ad spending showing upward trend
Kantar Media’s review of automotive spending from
November 2009 through the first 10 days of January shows
an optimistic upward trend. Starting in early November, there was a sustained spike
in auto ad time that lasted into early January. Network and
Cable benefitted more than spot TV.
(From: The Conference Board, January 28, 2010)
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GM to offer Toyota and Lexus owners incentives
General Motors Co., seeking to capitalize on the problems plaguing Toyota Motor Corp.'s vehicles, will offer a monthlong incentive to Toyota and Lexus owners.
(From: Automotive News, January 28, 2010)
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Petitions filed to try to reverse Supreme Court decision
At least two separate groups launched online petitions to try to reverse last week's Supreme Court decision freeing up more corporate and union money for political TV and radio spots. The president has said coming up with a legislative response to the court is a top priority.
(From: B&C tvfax, January 28, 2010)
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Massachusetts levies sales tax on satellite service
DISH and DirecTV are filing suit today in
Massachusetts Superior Court against the state of Massachusetts
over its recent decision to levy a 5% state sales
tax on satellite service.
They argue the tax is discriminatory because no similar
tax is levied on cable. “The lower sales tax imposed on
cable subscribers serves only the parochial economic interests
of those businesses and deprives the public of sales
tax revenues.”
(From: B&C tvfax, January 27, 2010)
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NRF predicts 2.5% rise in retail sales in 2010
The National Retail Federation predicts that retail
sales will rise 2.5% in 2010, signaling that the worst may
be over of the “Great Recession,” but that growth will be
slow going forward. Retail sales, which exclude autos,
gas stations and restaurants, fell 2.5% in 2009 and rose
only a modest 1.3% in 2008. “I wouldn’t describe this as a
very strong year,” said NRF economist Rosiland Wells.
“It’s a slow return to a normal level.”
(From: spots-n-dots, January 27, 2010)
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GM sells Saab to Spyker Cars
Saab got a new life Monday as General Motors Co. agreed to sell the Swedish car brand to the small Dutch luxury carmaker Spyker Cars NV.
(From: Associated Press, January 26, 2010)
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Far more dealers than expected file for arbitration
As the midnight Monday deadline approached, dealerships had filed more than 1,442 notices of intent to seek arbitration as of the end of this afternoon -- far exceeding expectations, an American Arbitration Association official said. The latest figure suggests that at least half of all eligible GM and Chrysler dealerships could end up filing and paying the $1,625 filing fee.
(From: Automotive News, January 26, 2010)
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Another $500 million in political ad dollars expected
Wells Fargo Securities analyst Marci Ryvicker figures about another $500 million in additional political ad revenues this year will result from the recent Supreme Court decision throwing out portions of campaign finance restrictions.
(From: TVBR Television Business Report, January 26, 2010)
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Sales of existing homes fell sharply in December
Sales of existing homes fell sharply in December,
according to the National Association of Realtors, but
the average sales price of those homes increased for the
first time in two years.
(From: spots-n-dots, January 26, 2010)
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TV advertising to gain slightly in 2010
Forrester Research says the TV advertising business will gain slightly in 2010 -- moving in line with slight improvements in the economy. The forecast estimates that TV spending will be pushed up 1% to $69.5 billion, similar to other TV ad predictions.
(From: Media Daily News, January 26, 2010)
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Accelerating activity seen across most media
Despite reduced upfront commitments and advertiser caution, recent signs point to accelerating activity across most media outlets, with booking visibility now spanning five-plus weeks as opposed to several days only a short time ago. Current economic and advertiser surveys point to a low-single digit rebound in total U.S. ad spend, driving 2010E ad revenue growth of +4.4%. Upside to this estimate may be possible
(From: Banc of America, January 25, 2010)
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2010 U.S. auto sales to kick off slowly
Forecaster J.D. Power and Associates expects 2010
U.S. auto sales to kick off slowly, with the rate in January
lower than in December.
J.D. Power expects January U.S. sales of 10.1 million
vehicles on a seasonally adjusted annual rate, up from a
9.6 million rate a year earlier but down from December.
(From: spots-n-dots, January 25, 2010)
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Eight retailers likely to close a number of stores in 2010
Dailyfinance.com has come forward with a list of eight
retailers which it says are very likely to close a number of
their stores over the coming months. First on the list if
Zales, which we have reported has been experiencing some
financial troubles of late. Abercrombie & Fitch is next on
the list, with dismal holiday same store sales off 15% to
17%. Also on the potential closing list was Game Stop,
expected to shed about 400 of its 1200 locations; Barnes
& Noble with same store sales off 5% for the holiday
season; Hot Topic, a mall-based clothing store, off 12%;
Dillard’s which could close 25 locations; JC Penney; and
Stein Mart, expected to drop about 35 stores.
(From: dailyfinance.com, January 25, 2010)
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Number of dealerships seeking arbitration soars to 785
The number of dealerships that have given notice of their intent to seek arbitration soared to 785 as of this morning -- a 74% increase in little more than a day, an American Arbitration Association official said. The unexpected surge is causing some dealership attorneys to revise their estimates of how many rejected GM and Chrysler Group showrooms ultimately will give notice by the deadline of midnight Monday, Jan. 25.
(From: Automotive News, January 22, 2010)
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FCC launching inquiry into future of media
The FCC is launching an inquiry into the future of media and its role in providing news and civic information. FCC Chairman Julius Genachowski said that rapid technological change has caused financial turmoil that calls into question whether traditional media will continue to be the go-to provider of essential news and information.
The commission issued a public notice teeing up some of the questions it wants answered and launched a web site to collect some of that input. It is not an official notice of inquiry, but an “initiative” with a request for public input via a number of avenues.
(From: B&C tvfax, January 22, 2010)
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600 GM or Chrysler dealers sign up for arbitration
About 600 car dealers nationwide have signed up to appeal decisions by General Motors Co. or Chrysler Group LLC to revoke their franchise agreements and shut them down.
(From: Associated Press, January 22, 2010)
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US Supreme Court decision may open floodgates on political ad spending
The U.S. Supreme Court in a 5 to 4 decision dealt a major blow to campaign finance limits today, potentially opening the floodgates for additional political ad spending by corporations, unions and special interest groups. President Obama denounces decision.
(From: Advertising Age, January 22, 2010)
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Supreme Court removes limits on corporate political spending
A Supreme Court ruling released today removes limits on corporate spending that promotes or opposes candidates for federal office. Corporations and labor unions still face limits in donating directly to candidates, but they will be able to place their own advertising as long as it is not coordinated with the campaigns of candidates for office. The decision also strikes the provision of the McCain-Feingold campaign-finance law that prohibited issue advertising funded by unions or corporations in the closing days of a race for office. The vote in the case was 5-4.
(From: Washington Post, January 21, 2010)
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168 GM dealerships seek reinstatement through arbitration
168 of the 2,000 rejected General Motors dealerships have given notice of their intent to seek reinstatement through arbitration.
(From: Automotive News, January 21, 2010)
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Starbucks plans "significant marketing increases"
Starbucks posted its first quarterly same-store-sales gain in two years, up 4%. To keep things humming along, the company told of "significant marketing increases" in the offing.
(From: Advertising Age, January 21, 2010)
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December housing starts lower than expected
December housing starts fell 4% from November,
according to the Commerce Department, a result that
was worse than expected. Single-family starts were off
6.9% to the lowest figure since May of last year. For the
full year, single-family starts were off 28.7%, to the lowest
mark in history, indicating that the inventory of new homes
is still too high to jump start any significant new
construction.
(From: spots-n-dots, January 21, 2010)
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Just two in five adults read a daily newspaper
According to an
Adweek Media/Harris Poll, just two in five U.S. adults
(43%) say they read a daily newspaper, either
online or in print almost every day. 10% say they
never read a daily newspaper.
(From: spots-n-dots, January 21, 2010)
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TV will dominate home entertainment
The television will dominate home entertainment for another year in 2010, showing more staying power than newspapers and even their digital reincarnation the e-reader which could both struggle, a new report from Deloitte predicts.
(From: Reuters, January 19, 2010)
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Insurance category outperformed the total ad market
According to a report released last week, the insurance
category has been one of the recession’s most-reliant
sources of media spending.
TNS Media says although overall ad spending was
down 15% through the first three quarters of 2009,
insurance spending was off roughly half that rate, falling
just 8%.
TNS Media SVP Jon Swallen says, “Growth rates
have slipped, but the category is still outperforming the
total ad market by a wide
margin.”
(From: spots-n-dots, January 19, 2010)
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Hyundai to make more ad money available to dealers
Hyundai, one of only three brands to increase sales
last year, will try to sustain its momentum by making more
advertising money available to its dealers.
Automotive News reports that regional ad association
and individual dealer co-op advertising will
get big increases this year, said Dave
Zuchowski, head of sales at Hyundai Motor
America.
“We’re doubling co-op money this year
from last year and significantly increasing
regional, yet not backing down from national,”
Zuchowski said.
(From: spots-n-dots, January 19, 2010)
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Magna modestly upgrades 2010 full year advertising forecast
With continued improvements in expectations on economic recovery, MAGNA forecasts that the first quarter of 2010 will represent the last quarter of decline for the US advertising economy during this recession. Among major economic measures, Industrial Production (IP) and Personal Consumption Expenditures (PCE) have the highest correlations with advertising, and forecasts of these variables inform our predictions of advertising revenue growth and decline. As expectations for IP have improved and should post positive year over year growth by the second quarter of this year, we believe this will mark the turning point in media suppliers’ recovery. As a result, we are modestly upgrading our 2010 full year forecast and now expect normalized advertising revenues (excluding local TV political and national TV Olympic revenues) to effectively be flat this year, only -0.1% below 2009 levels. This compares with our previously published expectations for a decline of 1.3% during 2010. In total, we expect suppliers to generate $161 billion of normalized advertising revenue this year.
(From: Magna, January 19, 2010)
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NRF releases final holiday season figures
The National Retail Federation has released its final
figures for the holiday season. Retail industry sales, which
exclude autos, gas stations and restaurants, rose 1.1%
year-over-year, surpassing the group’s prediction of a 1%
decline. Sales were up 2.3% in December but fell 0.5% in
November. In 2008, total sales for the holiday season were
down 3.4%.
(From: spots-n-dots, January 15, 2010)
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Toyota plans to extend marketing blitz into 2010
Toyota plans to
extend its fourth-quarter marketing blitz into 2010. “We were really pleased the way the
fourth quarter came together,” Toyota
Division General Manager Bob Carter said.
“The market is slowly starting to climb...”
And Toyota doesn’t want to lose
momentum. “We will spend more money because there
will be more business out there,” Carter said Monday on
the sidelines of the Detroit auto show, according to
Automotive News.
(From: Automotive News, January 13, 2010)
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VW to make big push in U.S.
Volkswagen will make a big push in this country, says
its US chief, with the goal of doubling its sales in the next
three or four years.
(From: spots-n-dots, January 12, 2010)
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2010 election spending may be record breaker
The 2010 elections will be viewed by pundits as a test of the Obama administration's popularity, but to media companies -- particularly local TV stations -- it will be viewed as a welcome stimulus package. Between increasingly unhappy (and active) voters, close congressional races and wide open gubernatorial contests, this year could eclipse 2006's record-breaking midterm spending of $2.6 billion.
(From: Advertising Age, January 11, 2010)
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Media buyers see 2010 ad recovery
Media buyers see 2010 ad recovery. 30% of those polled think advertising will bounce back, or begin to, in Q2. The prediction is from a Media Life poll of its media-buying readers. 11% think the bounceback will occur right now in Q1; 22% suggest Q3; 15% think it will happen in Q4 and 17% are pessimistic enough to select sometime in 2011 as the earliest possible recovery date.
(From: TVBR Television Business Report, January 11, 2010)
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Retail sales stabilized in December
Retail sales stabilized in December, offering tentative
hope that retail has survived the worst of the recession.
Retail Forward reports that same store sales, excluding
Wal-Mart, rose 3% last month, according to a report tracking
32 top retailers. That figure tracks sales at 32 national
retailers, most of them apparel retailers.
The December 2009 growth builds on the
0.9% same store sales rise that those 32
retailers reported in November, and a
welcome reverse of the 4.1% same-store
sales drop they saw in December 2008.
(From: spots-n-dots, January 11, 2010)
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Mediacom accuses broadcasters of "economic blackmail"
Mediacom Chairman
Rocco Commisso fired off a letter to Capitol Hill talking
about “broadcasters engaging in economic blackmail”, referring to a recently completed retransmission consent negotiation.
(From: B&C tvfax, January 8, 2010)
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Retailers maintain low expectations
While retailers are breathing a sigh of relief, having beat dire predictions of another grim holiday season, it's not quite time to celebrate. "The saving grace for most retailers remains low expectations and easy comparisons; we remain worried about rising inventories and expectations for 2010," said Eric Beder, an analyst with Brean Murray Carret & Co.
(From: Advertising Age, January 8, 2010)
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Hundreds of GM dealers may have franchises restored
Hundreds of the 1,350 General Motors Co. dealers who lost their franchises last year could see them restored in a congressionally mandated arbitration process that begins later this month, the company's interim CEO said Wednesday.
(From: TVNewsCheck, January 7, 2010)
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ABC wants piece of affiliates' retrans revenue
Even as broadcast networks are bitterly fighting over retransmission consent fees from cable operators — witness the recent flare-up between Time Warner Cable and News Corp. — they also are gearing up to grab a share of the retrans fees that their station affiliates are collecting. And the most aggressive network on that front appears to be ABC, which is drawing the ire of its affiliates. ABC has made getting a piece of its affiliates' retransmission consent revenue — or extracting comparable programming fees — a major deal point in affiliation renewals.
(From: TVNewsCheck, January 6, 2010)
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Broadcasters have more leverage over retrans consent
Retransmission consent, carriage and programming expenses are once again a hot button issue for Cable/Media in the New Year, with high profile NWS/TWC, CVC/SNI and SBGI/MCCC disputes grabbing investor, consumer and regulatory attention. Primary drivers of disagreement are: 1) the shift in network focus from carriage to rate, 2) broadcasters push for a dual revenue stream model and 3) diminished MSO negotiating leverage due to increased Pay TV competition. Importantly, the recently inked NWS/TWC deal is a watershed event, turning the tide in favor of broadcasters for negotiating leverage.
(From: Banc of America, January 6, 2010)
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Auto industry ends year on an up note
The auto industry ended one of its worst years in history
on an up note, with U.S. sales rising about 15% in
December while many executives predict a gradual
recovery in 2010.
(From: spots-n-dots, January 6, 2010)
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AT&T to begin offering local ads on it U-verse TV service this year
AT&T plans to begin offering local ad insertion opportunities for its U-verse TV service this year. For U-verse, marketers would thread ads into homes in the approximate 120 markets in 21 states that the telco TV services.
(From: Media Daily News, January 6, 2010)
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December auto sales close year on upswing
U.S. new-vehicle retail sales volume closed the year on an upswing, topping year-ago commerce and starting 2010 in the right direction, according to auto dealers.
(From: Marketnews.com, January 5, 2010)
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Time Warner/News Corp. carriage deal will have repercussions
The big carriage deal Time Warner Cable made with News Corp. will have repercussions for other big media players and consumers. Some analysts believe it will set a benchmark for TV station groups to push for more lucrative retransmission content deals.
(From: Media Daily News, January 5, 2010)
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Stemming of job losses seen
CareerBuilder has its 2010 employment market forecast set to go, and although it does not see a headlong rush back to full employment, it is picking up signs of growth, and just as important, a stemming of the tide of job loss.
(From: TVBR Television Business Report, January 4, 2010)
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