new-vehicle prices push consumers to buy used · 2020-01-23 · the pricing gap between new and...

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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 2020. The Daily News of TV Sales Thursday, January 23, 2020 RECORD-HIGH NEW PRICES AID MARKET SHIFT A growing numbers of Americans think a late-model used car or truck is a better option because it’s less expensive and not much of a downgrade from a brand-new model, The Detroit News reports. Analysts say affordability will continue to be as much an issue this year as it was last year, when the average transaction price for a new vehicle reached a record $37,183, which will continue to push consumers to consider used over new. “Prices are shooting up because shoppers are opting for pricey SUVs and trucks packed with more high- tech options than ever before,” said Jessica Caldwell, executive director of industry insights for Edmunds. “These increased costs, combined with the discontinuation of more-affordable options like domestic passenger cars, could prompt shoppers to shift their focus to the used market — or delay their purchase altogether.” Cox Automotive analysts say used vehicle sales hit 39.7 million in 2019, up 300,000 from 2018. That’s more than double the 17 million new vehicles sold last year, according to Kelley Blue Book. Dealerships sold about half of the used cars and trucks last year — about 20 million. That would be up about 500,000 year-over-year. In 2020, Cox expects the number of used-vehicle sales to drop to 39.4 million, with dealers commanding an even larger proportion. They expect dealers to sell about 20.3 million. Used sales have been steadily increasing since 2013. Analysts attribute the increase to the uptick in pricing for new cars and trucks, and an increase in the supply of more late- model offerings. “We had a couple years of lighter growth in the early part of the expansion,” said Jonathan Smoke, chief economist for Cox Automotive. “It’s really been since 2013 that we have seen growth in used.” As leasing has become a larger percentage of new-vehicle sales — about 30 percent — more two- or three-year-old models have come off lease and hit the used market. “They are providing more younger alternatives, and their price point has the under-$20,000 alternative that has almost completely disappeared from the new vehicle market from a sticker perspective,” said Smoke, adding “it’s nearly impossible” to find a new car under $20,000. At the end of 2019, 2 percent of sticker prices were at or around $20,000. The pricing gap between new and used vehicles has continually widened, reaching nearly $15,000 in the third quarter of 2019: The average new vehicle had a sticker price of $37,242; the average used price was $22,291, according to the latest data from Edmunds. The disappearance of lower-priced vehicles comes as a result of the shift toward light trucks and the amount of new, more expensive technology in vehicles today. Said Smoke: “That trend is not going to change. It’s going to march to even higher prices as we see more electrification and as we see more of a move toward truly autonomous vehicles.” NEW-VEHICLE PRICES PUSH CONSUMERS TO BUY USED ADVERTISER NEWS Little Caesars is heading to the Super Bowl for the first time, CNBC reports. The pizza chain’s ad will spotlight its new delivery partnership with DoorDash. By the number of stores it operates, the privately held company built itself into the third-largest pizza chain in the U.S., without ever offering delivery. But in early January, Little Caesars announced a partnership with DoorDash, whose fleet of drivers will deliver the pizzas. Customers can only order through Little Caesars’ website or app, not through DoorDash, the largest digital food delivery service by sales. This year, a 30-second commercial during the big game could cost as much as $5.6 million... Amazon.com has applied for a trademark for Amazon Pharmacy in Australia, Canada and the UK, suggesting the e-tail giant plans to expand prescription drug delivery outside the U.S., Engadget reports. Amazon acquired PillPack in 2018... Coca-Cola has pledged to recycle as many plastic bottles as it uses for its products by 2030, BBC News reports. One thing the company doesn’t plan to do, however, is supply its beverages in anything other than plastic bottles. The reason, according to Bea Perez, Coke’s head of sustainability, is that consumers like them... Lucky’s Market is closing the majority of its stores. The Boulder, Colo.-based grocery store chain plans to shutter 32 of its 39 stores in nine states, according to local media stories and posts on individual store Facebook pages. ProgressiveGrocer.com was among the first to report the news. Twenty of the chain’s 21 Florida locations, including stores in South Florida, Central Florida, on the west coast and the state’s capital of Tallahassee, are closing, according to local media reports... The New York Post reports that Fairway Market plans to file for a Chapter 7 bankruptcy and close all 14 of its stores. Village Supermarket, a publicly held operator of ShopRite banner stores, has expressed an interest in acquiring some of Fairway locations and continue operating them under that name. Fairway has denied the Post report... Krystal, a fast-food chain operating in the southeastern U.S., has filed for bankruptcy. The 300-restaurant chain cited changing consumer tastes, increased competition, the rise of online delivery, high lease costs and a tight labor market as factors in its decision to pursue Chapter 11 protection... Express has launched a new corporate strategy that involves closing stores and cost reductions. The apparel retailer said it plans to close approximately 100 stores by 2022, with the total including nine locations that closed in 2019. Another 31 stores will shutter by the end of January 2020, and an additional 35 by the end of January 2021. Currently, Express operates approximately 600 stores. The company said the planned closures would reduce revenue by $90 million by 2022, which will be offset by the elimination of costs and by leveraging the remaining stores and online infrastructure for additional sales.

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Page 1: NEW-VEHICLE PRICES PUSH CONSUMERS TO BUY USED · 2020-01-23 · The pricing gap between new and used vehicles has continually widened, reaching nearly $15,000 in the third quarter

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 2020.The Daily News of TV Sales Thursday, January 23, 2020

RECORD-HIGH NEW PRICES AID MARKET SHIFT A growing numbers of Americans think a late-model used car or truck is a better option because it’s less expensive and not much of a downgrade from a brand-new model, The Detroit News reports. Analysts say affordability will continue to be as much an issue this year as it was last year, when the average transaction price for a new vehicle reached a record $37,183, which will continue to push consumers to consider used over new. “Prices are shooting up because shoppers are opting for pricey SUVs and trucks packed with more high-tech options than ever before,” said Jessica Caldwell, executive director of industry insights for Edmunds. “These increased costs, combined with the discontinuation of more-affordable options like domestic passenger cars, could prompt shoppers to shift their focus to the used market — or delay their purchase altogether.” Cox Automotive analysts say used vehicle sales hit 39.7 million in 2019, up 300,000 from 2018. That’s more than double the 17 million new vehicles sold last year, according to Kelley Blue Book. Dealerships sold about half of the used cars and trucks last year — about 20 million. That would be up about 500,000 year-over-year. In 2020, Cox expects the number of used-vehicle sales to drop to 39.4 million, with dealers commanding an even larger proportion. They expect dealers to sell about 20.3 million. Used sales have been steadily increasing since 2013. Analysts attribute the increase to the uptick in pricing for new cars and trucks, and an increase in the supply of more late-model offerings. “We had a couple years of lighter growth in the early part of the expansion,” said Jonathan Smoke, chief economist for Cox Automotive. “It’s really been since 2013 that we have seen growth in used.” As leasing has become a larger percentage of new-vehicle sales — about 30 percent — more two- or three-year-old models have come off lease and hit the used market. “They are providing more younger alternatives, and their price point has the under-$20,000 alternative that has almost completely disappeared from the new vehicle market from a sticker perspective,” said Smoke, adding “it’s nearly impossible” to find a new car under $20,000. At the end of 2019, 2 percent of sticker prices were at or around $20,000. The pricing gap between new and used vehicles has continually widened, reaching nearly $15,000 in the third quarter of 2019: The average new vehicle had a sticker price of $37,242; the average used price was $22,291, according to the latest data from Edmunds. The disappearance of lower-priced vehicles comes as a result of the shift toward light trucks and the amount of new, more expensive technology in vehicles today. Said Smoke: “That trend is not going to change. It’s going to march to even higher prices as we see more electrification and as we see more of a move toward truly autonomous vehicles.”

NEW-VEHICLE PRICES PUSH CONSUMERS TO BUY USEDADVERTISER NEWS Little Caesars is heading to the Super Bowl for the first time, CNBC reports. The pizza chain’s ad will spotlight its new delivery partnership with DoorDash. By the number of stores it operates, the privately held company built itself into the third-largest pizza chain in the U.S., without ever offering delivery. But in early January, Little Caesars announced a partnership with DoorDash, whose fleet of drivers will deliver the pizzas. Customers can only order through Little

Caesars’ website or app, not through DoorDash, the largest digital food delivery service by sales. This year, a 30-second commercial during the big game could cost as much as $5.6 million... Amazon.com has applied for a trademark for Amazon Pharmacy in

Australia, Canada and the UK, suggesting the e-tail giant plans to expand prescription drug delivery outside the U.S., Engadget reports. Amazon acquired PillPack in 2018... Coca-Cola has pledged to recycle as many plastic bottles as it uses for its products by 2030, BBC News reports. One thing the company doesn’t plan to do, however, is supply its beverages in anything other than plastic bottles. The reason, according to Bea Perez, Coke’s head of sustainability, is that consumers like them... Lucky’s Market is closing the majority of its stores. The Boulder, Colo.-based grocery store chain plans to shutter 32 of its 39 stores in nine states, according to local media stories and posts on individual store Facebook pages. ProgressiveGrocer.com was among the first to report the news. Twenty of the chain’s 21 Florida locations, including stores in South Florida, Central Florida, on the west coast and the state’s capital of Tallahassee, are closing, according to local media reports... The New York Post reports that Fairway Market plans to file for a Chapter 7 bankruptcy and close all 14 of its stores. Village Supermarket, a publicly held operator of ShopRite banner stores, has expressed an interest in acquiring some of Fairway locations and continue operating them under that name. Fairway has denied the Post report... Krystal, a fast-food chain operating in the southeastern U.S., has filed for bankruptcy. The 300-restaurant chain cited changing consumer tastes, increased competition, the rise of online delivery, high lease costs and a tight labor market as factors in its decision to pursue Chapter 11 protection... Express has launched a new corporate strategy that involves closing stores and cost reductions. The apparel retailer said it plans to close approximately 100 stores by 2022, with the total including nine locations that closed in 2019. Another 31 stores will shutter by the end of January 2020, and an additional 35 by the end of January 2021. Currently, Express operates approximately 600 stores. The company said the planned closures would reduce revenue by $90 million by 2022, which will be offset by the elimination of costs and by leveraging the remaining stores and online infrastructure for additional sales.

Page 2: NEW-VEHICLE PRICES PUSH CONSUMERS TO BUY USED · 2020-01-23 · The pricing gap between new and used vehicles has continually widened, reaching nearly $15,000 in the third quarter

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

AVAILS Marquee Sports Network is the future exclusive television home of the Chicago Cubs in partnership with Sinclair Broadcast Group. The network will be the Chicago region’s exclusive network for fans to view live Cubs games beginning with the 2020 Major League Baseball season and will also feature extensive pre- and post-game coverage, exclusive Cubs content and other local sports programming. Must have 5+ years of on-air promotions experience with portfolio of video

content that demonstrates creative ability. CLICK HERE for more info or to apply now. EOE. Drug-free workplace. CBS3, KYW-TV and The CW Philly 57, WPSG-TV- ViacomCBS-owned and operated television stations in the No. 4 television market Philadelphia, have an immediate opening for an energetic and extremely motivated Multi-Platform sales professional. Candidates must possess strong presentation and communication skills,

experience working with advertising agencies, plus proven success in new business development. The ideal applicant possesses a strong work ethic and thrives in a fast-paced and competitive environment. Visit cbsphilly.com/tvjobs and apply to be considered. EOE. WAVY-TV 10 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. 2 years of media sales experience and a Bachelor’s degree preferred. CLICK HERE for more info or to apply. No calls, please. EOE/M/F/V/D. KIMT-TV, the CBS Affiliate in Rochester, Minn., has an immediate opening for a Chief Engineer. This person is responsible for all studio and transmission technical operations, maintenance and information systems. As part of the station’s senior management team, this position plays a vital role in station strategic planning, budgeting and day-to-day operations. Rochester is a growing family-friendly community, rated as one of the best cities to live in the Midwest and the home of the world renowned Mayo Clinic. Apply at www.kimt.com or send cover letter/resume to: [email protected]. EOE.

See your ad here tomorrow! CLICK HERE for details.

THIS AND THAT Nearly half of Americans (44%) have financial goals for 2020, according to a new CreditWise from Capital One Financial Milestones survey. Of those surveyed who have a financial resolution, 71 percent plan to save more money and 34 percent are planning to pay off debt. To save more money, half (51%) of respondents are planning to eat out less, cancel unnecessary subscriptions (47%) and cable (40%) and pack their lunch (21%).

NETWORK NEWS NBC has ordered two more drama pilots: At That Age from writer Carla Banks-Waddles, and Echo, from writer JJ Bailey. At That Age is an exploration of an African-American family’s legacy. After the Cooper family’s golden child suffers a catastrophic event, seven family members face a foundational shift, make life-altering decisions and deal with deep secrets coming to light. Echo, meanwhile, is a high-concept, genre procedural revolving around a team of investigators who solve the highest-profile crimes by sending our heroes into the past... in the body of the victim. They assume the victim’s identity and must race against time to prevent the crime before it happens... Claws co-star Dean Norris is set as a series regular opposite Adhir Kalyan and Parker Young in The United States Of Al, CBS’ multi-camera comedy pilot. Written by David Goetsch and Maria Ferrari, The United States of Al is about the friendship between Riley (Young), a Marine combat veteran struggling to readjust to civilian life in Ohio, and Awalmir aka Al (Kalyan), the interpreter who served with his unit in Afghanistan and has just arrived to start a new life in America... ABC has given a pilot order to Harlem’s Kitchen, a drama from writer Zahir McGhee (For the People). Harlem’s Kitchen is an ensemble family drama set in a fine dining restaurant in Harlem. Ellis Rice, executive chef and patriarch, runs a successful restaurant with his wife and three daughters. But an unexpected death thrusts the family into turmoil and puts the restaurant’s future in jeopardy as long-buried secrets are revealed... The comedy Outmatched, starring Jason Biggs as a blue-collar father raising a bunch of genius children, begins on Fox tonight. Lon Zimmet created the show and is executive producer. Maggie Lawson plays the mother of the brilliant kids. Three of the kids in the family are geniuses, and one, eight-year-old Leila, appears to be of ordinary intelligence. The cast also includes Tisha Campbell, Jack Stanton, Connor Kalopsis, Ashley Boettcher and Oakley Bull... CBS News has named Reince Priebus as a political analyst. Priebus, President Trump’s first chief of staff, is commenting on the impeachment proceedings in the Senate.

WHEN IT COMES TO JOBS, MILLENNIALS SURGING If there really is a generation war raging in the workplace, millennials may have already won, USA Today reports. Seventy-two percent of talent professionals say they plan to focus on recruiting millennials (ages 24-39) over the next five years as opposed to other age groups, according to a LinkedIn survey of 2,406 U.S. hiring managers conducted Aug. 24-Sept. 30. Gen Z (under 24) came in second (57%), followed by Gen X (41%) and baby boomers (13%). The results are part of a global talent trends survey of 7,000 hiring pros in 35 countries. A report on the survey suggests it’s no surprise millennials and Gen Z are the most coveted pools of job candidates since they “make up roughly half of the world’s population” and are “the newest generations on the scene.” Boomers, meanwhile, are retiring in large numbers, with about 10,000 a day hanging it up.

1/23/2020

Larry The Cable Guy

You wouldn’t think so, but I’m pretty good at Scrabble.

I can get my tiles into the trash from 20 feet away.

Page 3: NEW-VEHICLE PRICES PUSH CONSUMERS TO BUY USED · 2020-01-23 · The pricing gap between new and used vehicles has continually widened, reaching nearly $15,000 in the third quarter

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

U.S. HOMES WITH 3+ STREAMERS ON THE RISE U.S. online homes with more than three subscription video-on-demand services keep growing, Television News Daily reports. In the third quarter of 2019, Ampere Analysis says 39 percent of U.S. homes had three or more SVOD services. That’s up from 33 percent in the same period the year before. By way of comparison, European TV homes are also rising, although at a lower percentage than U.S. TV homes overall. Currently, 22 percent of European online TV homes have three or more SVOD services, up from 16 percent. In addition, Ampere says, total worldwide streaming

subscribers will overtake pay-TV subscribers in more than 30 countries by the end of this year “mostly thanks to the launch of Apple TV+.” A promotion gave new Apple device owners a free 12-month Apple TV+ subscription. In March, a study showed that online video subscribers have an average of 3.4 streaming services and pay an average of $8.53 per month per service. The study was released by nScreenMedia commissioned by Vindicia.

EXISTING-HOME SALES ENDED ’19 ON SOLID NOTE Home sales hit their high mark for the year in December, a sign that favorable mortgage rates and low unemployment are starting to lure more house hunters back into the market, The Wall Street Journal reports. Sales of previously owned homes increased 3.6 percent in December compared with November to reach a seasonally adjusted annual rate of 5.54 million, the National Association of Realtors said yesterday. Compared with a year earlier, December sales of existing homes were up 10.8 percent, though December 2018 was a particularly weak month for sales and economic uncertainty around the federal government shutdown caused some buyers to delay purchases, NAR found. Now, after a slow start to the year, the second half of 2019 showed a pickup in activity that brought total sales for the year to 5.34 million, the same pace as in 2018.

1/23/2020

FunnyTweeter.com

People who say, ‘Why wasn’t I invited?’ don’t

realize that they’re actually the real winners.

TUESDAY NIELSEN RATINGS - LIVE + SAME DAY

DENTSU: 3.8% U.S. AD SPENDING GROWTH IN 2020 The 2020 U.S. elections, a “resurgent” National Football League and the Tokyo Olympics are the key factors that will produce 3.8 percent advertising spending growth this year. That’s according to Dentsu Aegis Network, whose new forecast sees 3.9 percent growth globally. Additionally, the firm puts 2021 growth at 2.8 percent in the U.S. and 3.3 percent globally. “While digital has dominated ad spend growth in recent years,” the forecast says, “traditional advertising mediums are showing signs of a modest recovery in 2020.” Dentsu says TV will maintain around one-third (31.5%) of global ad spend share this year. It’s expected to grow at a 0.6 percent clip. Total TV spending will rise by 1.3 percent in the U.S., with OTT services having the biggest increase in spend and growth potential as new players enter the market. Addressable TV advertising has seen fast growth, reaching $2 billion in the U.S. last year. That’s an increase of roughly 30 percent. While it’s still just a sliver of the overall linear television ad market, it’s expected to account for 10 percent by 2023. It now accounts for between 1 and 2 percent of the total linear TV advertising market and is expected to account for 10 percent by 2023 locally. The anticipated total global advertising spending amounts to $615.4 billion — with the U.S. elections alone expected to generate $10 billion. The expected 2020 growth equals an additional $23.3 billion worldwide and $8.5 billion in the U.S.

11M TUNED IN TO DAY 1 OF IMPEACHMENT TRIAL About 11 million people watched at least parts of the opening day of President Trump’s Senate impeachment trial Tuesday on the cable and network news stations that televised the more than 12-hour proceedings. Fox News led the way with 2.65 million viewers in the 12:30 PM to 5 PM slot, followed by CBS with 1.94 million in the same time frame, Variety reported yesterday. MSNBC came second among the cable networks with 1.9 million, with CNN bringing up the rear, drawing 1.44 million, while ABC drew 1.63 million viewers and NBC scoring roughly the same figure as CNN. NBC was the only major network to cover the trial in the evening, from 5:18 PM to 7:40 PM, during which time it received a healthy boost in numbers to 2.8 million, topping Fox, which drew 2.63 million, MSNBC at just under 2 million, and CNN at around 1.5 million. In prime time — 8 PM to 11 PM — Fox News led with 3.5 million to MSNBC’s 2.5 million and CNN’s 1.5 million.

‘DREW BARRYMORE’ CLEARED FOR FALL 2020 CBS Television Distribution’s new daytime talker The Drew Barrymore Show is now a firm go for fall 2020, says Steve LoCascio, chief operating officer of CBS Television Distribution. CTD has added such station groups as Nexstar, Sinclair, Weigel, Scripps, Gray, Tegna, Meredith and Mission to its initial launch group of CBS-owned stations, bringing the show’s total clearance level to 85 percent of the U.S.