Analyst: Cable scatter market could gain from broadcast woes | Time Warner cable networks post best quarter ever | Affiliate fees, ad sales lift AMC's results
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November 14, 2012
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Analyst: Cable scatter market could gain from broadcast woes
TBS, TNT and other cable TV networks that are popular with the 18-to-49 demographic could see demand for scatter inventory go up because of declining ratings this fall on broadcast channels, Cowen Group analyst Doug Creutz said in a note. Broadcast networks, with overall ratings off by 9% and 18-to-49 numbers down by 10%, are likely to have to provide make-goods to clients and therefore will have little inventory left for the scatter market, according to Creutz. Advertising Age (free access for SmartBrief readers) (11/12)
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Local Markets
Time Warner cable networks post best quarter ever
Time Warner's networks unit, which includes TNT, TBS and HBO, reported its best quarter ever, tallying $1.22 billion in operating income, 12% higher than the same period last year. The cable division helped make up for a weak performance by Time Warner's magazine and movie units, with the parent company tallying a 1.9% rise in net profit. Time Warner CEO Jeffrey L. Bewkes said the networks division was the "highlight" of the period, adding that the cable channels' performance "illustrates that our investments in content and technology are paying off." The New York Times (tiered subscription model)/Media Decoder blog (11/7), The Wall Street Journal (tiered subscription model) (11/7)
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Affiliate fees, ad sales lift AMC's results
AMC, thanks to its roster of hit shows such as "The Walking Dead" and "Mad Men," enjoyed a strong quarter, tallying $36.6 million in profit on revenue of $332 million. Ad revenue increased 9.1% to $107 million, while affiliate fees and other revenue was up 24% to $199 million. Reuters (11/8), The Wall Street Journal (tiered subscription model) (11/8)
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Suddenlink charts video growth as part of strong quarter
Suddenlink Communications added a small number of video customers in the third quarter, as revenue for the period rose 6.1% to $511.9 million and free cash flow jumped 131% to $35.1 million. "We are well-positioned to build on this track record as we continue to improve customer satisfaction ratings and near completion of the company's acquisition by management and new investors," said Chairman and CEO Jerry Kent. CEDMagazine.com (11/9)
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Campaigns and Agencies
NBCU joins with American Express for TV-inspired product line
NBCUniversal has tapped American Express as a partner for a TV commerce program that allows viewers to use their mobile phones to buy products inspired by Bravo's "Life After Top Chef," E!'s "Fashion Police" and other series. NBC's DailyCandy website will be choosing the items, which will be sold via the Zeebox social TV application. American Express card members will be able to get a $35 rebate if they charge purchases with an eligible card that's linked to Facebook or Twitter. Advertising Age (free access for SmartBrief readers) (11/7)
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Little Caesars, Samuel Adams back "Doomsday Preppers"
Little Caesars, Wise Food Storage and Samuel Adams are the lead sponsors of the second season of "Doomsday Preppers," National Geographic Channel's most popular series. The marketing partners will be featured in special vignettes, billboards and ads, with Wise also plugging the series in mailings and at retail stores and trade shows. National Geographic also is making a major push for the show on Facebook, as well as running ads on national cable and satellite channels, in print and online. Broadcasting & Cable (11/12)
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Gilt is ready for prime time
E-commerce site Gilt, after five years in business, is airing its first TV ads on HGTV, Oxygen, TLC, Style, Logo, Lifetime, E! and other cable networks. "When we took a look at the marketplace, it was just the perfect time for TV," said chief marketer Elizabeth Francis. "We're a more mature business now. We have built out our product and product offerings." Advertising Age (free access for SmartBrief readers) (11/12)
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Scripps is key ingredient in Fisher Nuts campaign
Fisher Nuts has tapped Alex Guarnaschelli, a judge on the Food Network show "Chopped," for an ad campaign focusing on "recipe nuts" such as pecans and walnuts. The campaign is exclusive to Scripps media properties, including television shows, websites and magazines. Advertising Age (free access for SmartBrief readers) (11/6)
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Research and Report
Political-ad spending will likely continue to spiral higher
Presidential campaigns alone dropped $1.1 billion on television stations in just 12 swing states -- with another $200 million on cable, according to Kantar Media. But that's not likely to be the ceiling, writes Cotton Delo. Because stations are not obliged to offer super PACs the lowest unit charge as they are the candidates themselves, rates could go up and campaign messaging could start even earlier than in 2012. Advertising Age (free access for SmartBrief readers)/Campaign Trail blog (11/7)
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Next Gen Advertising
Internet-connected TV viewers see ads as a form of content
More than half of consumers in Internet-connected TV homes consider interactive ads a form of content "containing useful and valuable information," according to a Parks Associates study commissioned by Rovi. About 87 million households in North America will be connected-TV homes in four years, the study predicts. "Consumers are more receptive to advertising that takes this brand-infused approach," says Rovi's senior vice president of worldwide advertising, Jeff Siegel. MediaPost Communications/MediaDailyNews (11/8)
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Programming News
Pro athletes are a draw for children's networks
Professional athletes from the NFL, NBA, NASCAR and other sports are being tapped by Disney XD, Cartoon Network, Nickelodeon and Nicktoons to help promote physical fitness and attract young male sports fans to their programming. Disney XD, for example, is featuring Tony Gonzalez of the NFL's Atlanta Falcons in a series of "Ninja Moves" spots to promote healthy choices and build awareness of its animated series, "Randy Cunningham: 9th Grade Ninja." Also, Nickelodeon has incorporated NBA stars Chris Paul and Carmelo Anthony into its annual "Worldwide Day of Play" event. Multichannel News (11/12)
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Digital Media
Twitter is part of promo recipe for Discovery's "Moonshiners"
Discovery supplemented traditional promos for the second-season debut of "Moonshiners" with a Twitter push in which users could tweet flavor suggestions for a custom moonshine recipe to be concocted at a Brooklyn distillery. Discovery also was holding a contest with 50 prize packs of legal moonshine packaged in wooden barrels with the series logo. Advertising Age (free access for SmartBrief readers) (11/7)
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SmartQuote
The best way to find out if you can trust somebody is to trust them."
-- Ernest Hemingway,
American author and journalist
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About NCC Media
NCC Media is the ad sales, marketing and technology organization that represents cable, satellite and telecom operators in every U.S. market. NCC Media meets marketers' needs to target consumer prospects efficiently and effectively in the communities where they live. Jointly owned by three of the nation’s largest MSOs – Comcast Cable, Cox Communications and Time Warner Cable – NCC Media is constantly evolving to maintain its status as the industry’s most effective multi-platform sales organization. Consistent innovation and growth makes NCC Media your best partner in building the media plan of tomorrow, and today.

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