Broadcast Network Upfront to End Down 22 Percent
Broadcast network television upfront buying for the 2009-10 season is expected to wrap up this week with the five major broadcast networks taking in about $7.2 billion in prime time ad revenue, down 22 percent over last year’s $9.25 billion.
While the troubled economy played a role in the decline of upfront revenue, with some advertiser budgets lower than last year, and negotiated pricing for ad units down -1 to -7 percent compared to last year, the biggest reason for the disparity was that the networks decided to hold back significantly more ad inventory, hoping to sell it during the season in hopes that the economy gets healthier.
ABC and CBS, which both sold about $2.5 billion in prime-time advertising in last year’s upfront, according to sources familiar with both networks' negotiations, sold about $1.9 billion respectively this year. Fox, which sold $1.95 billion last year, sold about $1.6 billion prime-time revenue this year, while NBC, which recorded $1.9 billion last year, was said by sources to have banked $1.5 billion this year. The CW network, with only five days and 10 hours a week of prime-time programming, sold about $300 million in prime time advertising, compared to $380 million the year before.
NBC’s prime-time total does not include two weeks of Winter Olympics coverage in February, but does include National Football League Sunday Night Football telecasts in prime time in fourth quarter. And ABC’s total also includes Saturday night college football telecasts.
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While the troubled economy played a role in the decline of upfront revenue, with some advertiser budgets lower than last year, and negotiated pricing for ad units down -1 to -7 percent compared to last year, the biggest reason for the disparity was that the networks decided to hold back significantly more ad inventory, hoping to sell it during the season in hopes that the economy gets healthier.
ABC and CBS, which both sold about $2.5 billion in prime-time advertising in last year’s upfront, according to sources familiar with both networks' negotiations, sold about $1.9 billion respectively this year. Fox, which sold $1.95 billion last year, sold about $1.6 billion prime-time revenue this year, while NBC, which recorded $1.9 billion last year, was said by sources to have banked $1.5 billion this year. The CW network, with only five days and 10 hours a week of prime-time programming, sold about $300 million in prime time advertising, compared to $380 million the year before.
NBC’s prime-time total does not include two weeks of Winter Olympics coverage in February, but does include National Football League Sunday Night Football telecasts in prime time in fourth quarter. And ABC’s total also includes Saturday night college football telecasts.
Read More from Meadiaweek.com
Shared via AddThis
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