TV Networks Gear Up For Telling 'Upfront' Talks

[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg brian.steinberg@wsj.com]
The primetime "upfront" ad-sales session, when broadcast-TV networks try to secure ad commitments for their fall TV season, is still two months away. But preparations are already under way for what is likely to be the most closely watched upfront in years. Last year, the broadcast-TV networks suffered a drop in their total upfront take to between $9.2 billion and $9.4 billion, from about $9.5 billion in 2004. It was the first down year since 2001, interpreted by some in the ad industry as a sign that marketers were starting to scale back their network-TV ad spending to put more emphasis on other media options. Still, one down year can be an anomaly; a second down year would suggest the decline is part of a structural change in advertising. Among the things influencing the debate: 1) the use of DVRs like TiVo, 2) consolidation in the auto, retail and telecommunications industries may mean less ad spending, and 3) splintering audiences.
http://online.wsj.com/article/SB114238573890098421.html?mod=todays_us_marketplace
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