FOX SELLS 70% OF ITS UPFRONT ADS WHILE OTHER NETS STRUGGLE (WSJ, VAR, THR)
By Stephen Saito
In a sluggish ad market for networks, Fox has pulled ahead, selling off 70% of its ad deals with a price increase between 2 to 3% over the previous year, according to News Corp's president Peter Chernin. Fox can thank "American Idol," a show with big ratings in the right demographics, for its early success.
The other three networks haven't fared as well, with NBC actually reducing its price by 4 to 5% and CBS and ABC attempting to raise their rates as much as 6%. This despite a greater competition from emerging media like the Internet. While CBS and NBC have completed roughly half their ad sales, with NBC expecting to bring in between $1.8 and $1.9 billion when it finalize its ad commitments, ABC is not making any deals yet.
Writes the Journal:
Neither ABC nor CBS has finalized anywhere near as much business as Fox, however. CBS, home to long-running hits such as "CSI" and "Survivor," is holding firm in a push for price increases. Despite the network's stable lineup, media buyers say they are pressuring the network to keep prices flat or even roll them back. One media buyer says CBS recently walked away from an upfront deal that called for pricing to remain flat.
ABC is taking a similarly tough stance. The network is asking for price increases as high as 6%, according to one media buyer. Advertisers might be willing to go as high as 4%, another buyer said. Advertisers might be concerned about the ability of ABC to add fresh hits to its roster, particularly as one of its big hits, "Desperate Housewives," lost some audience last season.
Disney Chief Financial Officer Tom Staggs told an investor conference yesterday that ad sales are "slow to develop." He added, "It looks like advertisers are holding back more dollars than they did last year," he said. Last year ABC wrapped up its upfront deals faster than other networks.
Related Links
FOX SELLS 70% OF UPFRONT ADS WHILE OTHER NETS STRUGGLE (WSJ)Hoisting the sales (VAR)
Fox rates lead upfront rise, Chernin says (THR)
