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Response This Week August 19, 2015

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19 Aug, 2015

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INDUSTRY NEWS
Pay-TV Loses Most Subs Ever in 2Q 
CHARLOTTESVILLE, Va. – Pay-TV providers faced their largest loss of subscribers ever in the second quarter of 2015, says SNL Kagan. Cable, satellite, and telco lost 625,000 U.S. TV subscribers.
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OTT Facing Rising Churn Rates 
DURHAM, N.C. – Pay-TV providers aren't alone in losing subscribers. Their over-the-top (OTT) rivals – like Netflix, Hulu and Amazon Prime Instant Video – are facing churn, too.
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FCC Order Would Kill Syndicated, Network Non-Duplication Rules 
WASHINGTON – Last week, Federal Communications Commission (FCC) Chairman Tom Wheeler proposed to eliminate the agency's network non-duplication and syndicated exclusivity rules and to review the requirement that parties in retrans negotiations act in "good faith."
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AT&T Sees TV Revenue Moving to Mobile Video 
DALLAS – DirecTV parent AT&T painted a picture of its pay-TV vision for the future – and in a word, that future is mobile because the company will be encouraging customers to watch video on their tablets and smartphones.
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Ad Blocking Grows; Advertisers Not Panicking, Yet 
SAN JOSE, Calif. – Ad-blocking technologies continue to thwart display or pre-roll video ads, retargeted ads and native ad content.
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NEWS CORNER

InQuest Communications announces Soulfia Perez King (known for “Bunsology”) has been added to its roster of fitness trainers whose direct response marketing efforts are managed by Rick Shiu, including Robert Brace (D28 For Life) and The Weaver Triplets, Floyd, Troy, and Lloyd (Trip Cardio).

Advertising industry veteran Harpreet Ahuja joins Quigley-Simpson as its new executive vice president of media. Ahuja will oversee all media planning and buying for the Los Angeles- and New York-based agency.

Amazon tells Reuters that, starting Nov. 1, it will stop serving product ads at the bottom of search results that lead to third-party retail sites. Engines like Google have been able to glean data from the transactions. The Amazon marketplace will replace the ads with Amazon Text Ads, which enable marketers to drive traffic to websites through a pay-per-click model. Still, some retailers, such as Lamps Plus, note that the program was an asset. In a case study, Lamps Plus noted increasing sales through the program by more than 80 percent.

Viacom starts a new division within its ad sales unit that will specialize in multi-platform social partnerships. The new Velocity Products Group will help clients extend their messages using Snapchat, Twitter, Tumblr and other social media outlets.

NBCUniversal moves deeper in its investments in digital publishing platforms – agreeing to make a $200 million equity investment in Vox Media. Vox Media’s brands include SB Nation, Polygon, The Verge, Vox.com, Eater, Racked, Curbed and Re/code. NBCU also drops a similar $200 million investment in strategic partnerships on BuzzFeed, another massively popular online news aggregator.

Bloomberg reports Apple has been forced to delay the launch of its long-awaited over-the-top (OTT) service until next year due to slow movement in the crucial licensing talks with TV networks, as well as the need for network capacity upgrades. Apple wants to slash the cost of TV packages when compared to traditional cable companies with a package of popular channels for $40 monthly – half the cost of a typical cable subscription.

Time Warner CFO Howard Averill says that subscriber losses at the company's Turner channels "have been a bit more than we expected," but he argues that cord cutting is not accelerating. Averill says that Time Warner is focusing on strengthening the existing pay-TV system, while at the same time reaching out to users outside the established eco-system – pointing to the launch of streaming-only service HBO Now as the clearest such move to date.

Retailer apps are seen as convenient and fast but when it comes to making a smartphone purchase, the retailer website continues to win out. In just about every category of mobile shopping, consumers turn to the retailer’s website on their phone’s mobile browser rather than using the retailer’s app, based on a new study by Forrester Research for RetailMeNot.

Marketers are now spending and profiting more on data-driven marketing, according to a DMA/Winterberry Group surveyThe survey shows significant growth across nearly all performance indicators, particularly in sales revenue, which grew faster than any period since first-quarter 2014. Confidence reached a high point for data-driven marketers in second-quarter 2015, with 84.2 percent of practitioners expressing confidence in its growth.

A report from the Relevancy Group says marketers that use real-time multichannel data generate nearly three times more revenue in their marketing programs than their peers who don’t use real-time data. Adding automation pushes those results even higher. Marketers that automate customer lifecycle messaging through tactics such as rules-based triggers, drive 133 percent more revenue than those that don’t.

Verizon quietly reverses its 2011 decision to throttle some longtime wireless customers who still subscribe to unlimited data plans and use the 3G network. The company recently notified people of the move via its website, which now says: "Beginning in 2011, to optimize our network, we managed data connection speeds for a small subset of customers – those who are in the top 5% of data users and have 3G devices on unlimited data plans – and only in places and at times when the network was experiencing high demand. We discontinued this practice in June 2015."

The American Association of Retired Persons (AARP) launches its own ad agency specifically to help brands promote their products to the over-50 crowd. The new agency is called Influent50 and already has a dozen plus clients, including Avis Budget and UnitedHealthcare.

UPCOMING DR EVENTS

COMING UP:

NACDS Total Store Expo 2015
August 22-25, 2015 | Denver
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LeadsCon New York 2015
August 25-26, 2015 | New York
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&THEN: DMA 2015
October 4-6, 2015 | Boston
More On Event

Shop.org Annual Summit 2015
October 5-7, 2015 | Philadelphia
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DRMA Marketer of the Year Event
October 7, 2015 | Las Vegas
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View All Events

JOB BOARD

Check out all of the new postings on Response's Job Board!
A niche job board for those with careers in all aspects of the direct response industry. Here are the featured jobs of the week:

Position: Campaign Marketing Manager - General Electric
Location: San Francisco
Posted: 7/26/15
View/Apply

Position: Marketing and Advertising Assistant - American Academy of Physicians' Assistants
Location: Alexandria, Va.
Posted: 7/24/15
View/Apply

Position: Director, User Experience - First Book
Location: Washington, D.C.
Posted: 7/16/15
View/Apply

View All Jobs:
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