Posts Tagged ‘NBC’
By Andy Fixmer, Bloomberg
The biggest U.S. television networks are posting declines of 15 percent or more in advertising commitments for the prime-time season starting next month, based on results at CBS and NBC.
So-called upfront sales at General Electric Co.’s NBC will fall 15 percent to 20 percent, a person with knowledge of the matter said yesterday. Sales were $1.9 billion last year, a person familiar said then. CBS Corp. will collect about $2.1 billion, down from an estimated $2.5 billion, according to Michael Morris, an analyst at UBS AG.
“We’ve been the strongest player in these very protracted negotiations,” CBS Chief Executive Officer Leslie Moonves said on a conference call yesterday. “We’re very pleased with how things have progressed.”
Networks are holding more inventory, betting advertisers will pay a higher price as the economy improves. New York-based CBS, the most-watched network among all viewers, is almost done and will pre-sell about 65 percent of its available ad time, compared with 75 percent to 80 percent last year, Moonves said. NBC will is selling 70 percent of its inventory, down from 80 percent, according to the person.
Anthony DiClemente, a New York-based analyst at Barclays Capital, estimated in April that networks’ advance ad sales may drop 15 percent to about $7.4 billion.
Advertisers are paying CBS slightly less per viewer in this year’s upfront sales than they did last year, Moonves said. A larger audience at CBS, the only network to expand prime-time viewership last season, is countering the lower price to keep revenue about even on the ads it has sold, he said.
Time.com reports that on On October 2, members of the International Olympic Committee (IOC) will meet in Copenhagen to decide the host city for the 2016 Summer Olympics. Officials from Chicago, which is competing against Rio de Janeiro, Madrid, and Tokyo for the Olympic prize, are working feverishly to perfect their pitch down the homestretch. The Chicago delegation just returned from Africa, where it made a presentation to the Olympic executives of that continent. President Obama himself sent a video message, asking the Africans for their vote.
Chicago’s bid has received positive feedback, and many consider the Windy City the favorite to win the Games. So why, less than three months before the vote, is the Olympic governing body of the United States ticking off the very officials that will decide Chicago’s fate, in a move that could cost an American city the Games?
The U.S. Olympic Committee (USOC), on July 8, announced that it had signed an agreement with Comcast to form the U.S. Olympic Network, which will provide year-round coverage of Olympic sports. According to the USOC, the network would launch sometime after the 2010 Vancouver Games. One problem: such a network could compete with NBC, which is paying $2.2 billion to broadcast the 2010 and 2012 Olympics. The network accounts for roughly half of the IOC’s global broadcast rights fees, and NBC will surely be among the bidders for the 2014 and 2016 Olympics as well. Plus, NBC wanted the USOC to partner with its own cable network, Universal Sports, for Olympic programming. NBC is irked, and the IOC doesn’t like to see its sugar daddy sulking.
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