Television ad sales winding down, down, down (Dinosaur Media DeathWatch™)

Los Angeles Times ^ | August 5, 2009 | Meg James

[abb]

Broadcast television networks typically sell the bulk of their advertising for the coming season in a handful of days in late May and June. But this wasn't a typical year.

With the sour economy, declines in consumer spending and sagging prime-time rankings, network sales executives have had to work overtime this summer to close deals with advertisers. For more than a month, talks were stalled because advertisers were demanding steep cuts in pricing -- and the networks initially were refusing to give in. Several weeks ago, the impasse melted and the networks started to slowly ring up sales with major advertisers.

Until now, none of the networks nor the advertising buyers was publicly discussing the results of the closed-door negotiations. However, this afternoon, the No. 1 network, Fox Broadcasting, broke its silence and said it was nearly finished with its "upfront" sales and that it was pleased with the results.

"As the upfront selling season winds down, Fox Broadcasting has achieved its prime-time revenue goal," sales president Jon Nesvig said in a statement. The network declined to provide a dollar amount for the business it wrote this summer or say whether its "revenue goal" included shaved ad rates.

Fox conceded that it did not sell as many prime-time commercials this summer as it has in the past. That is an indication that the network held back commercial time rather than slash prices simply to make sales and move inventory. The network is betting that its new fall shows will perform well in the rankings, thus allowing the network, owned by Rupert Murdoch's News Corp., to command higher prices later on in the year.

In fact, Fox is being a tad bullish.

snip

[abb]

"By the end of this decade or shortly thereafter, television networks as we know them today will cease to exist. They will be just another url on the world wide web competing against millions of others."

"Network evening newscasts will go dark after the '08 elections and their news divisions disbanded."

Walter Abbott, (b. 1950), Media observer, blogger and commentator

[abb]

ping

[abb]

http://latimesblogs.latimes.com/showtracker/2009/08/so-the-pressure-is-really-on-for-jay-leno-right-his-new-10-pm-talk-show-debuts-in-a-little-over-a-month-and-if-it-goes.html
TCA press tour: Jay Leno says his new show ‘not here to save’ NBC

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/08/nbcs-press-strategy-duck-and-run-.html
NBC’s press strategy: duck and run

[Grumpybutt]

So does this mean the “big pharma” ads will increase or decrease? If they are decreasing, does that mean the costs of rx’s will go down?

[Vaduz]

Fox conceded that it did not sell as many prime-time commercials this summer as it has in the past. If that is true why is Fox sales 50% higher than last year OH wait it’s an LA Times thingy.

[Zakeet]

Fox conceded that it did not sell as many prime-time commercials this summer as it has in the past. If that is true why is Fox sales 50% higher than last year

LA Times: News Corp. swings to a $203-million loss in 4th quarter

Rupert Murdoch's media conglomerate says its Internet assets, which include MySpace, have lost a third of their value since it bought them in 2005. The company also posts a loss for the fiscal year.

After spending a little more than $1.5 billion on Internet assets over the last four years, News Corp. acknowledged Wednesday that they had lost nearly one-third of their value.

The conglomerate's $452-million impairment charge for its Fox Interactive Media unit, which includes the MySpace social networking site, was the biggest piece of bad news for the fiscal fourth quarter ended June 30, during which revenue fell 11% to $7.7 billion and the company swung to a $203-million loss from $1.1 billion in net income a year earlier.

[Snip]

The lone bright spot for News Corp. was once again its cable channels, led by Fox News Channel, which has seen ratings grow and is benefiting from an increase in fees paid by cable and satellite operators. Operating income for News Corp.'s cable unit, which also includes FX and international channels, rose 39% to $434 million. During the conference call, Chief Financial Officer David Devoe said the increase was driven entirely by affiliate fees, as advertising revenue was down 10%.

Ad revenue was down even more significantly for the company's Fox broadcast network and local stations, which saw their combined operating income plummet 66% to $95 million in the quarter.

[Snip]

News Corp.'s newspaper business could certainly use a boost, as it reported a 63% drop in adjusted operating income last quarter to $96 million.

For News Corp.'s full fiscal year, revenue fell 8% to $30.4 billion and the company swung to a $3.38-billion loss from a $5.39-billion profit.

[abb]

http://eskimon.wordpress.com/2009/08/05/newspapers-are-dead-long-live-news/
newspapers are dead; long live news

[Vaduz]

Internet assets,nor Fox

[uncbob]

Wonder if all the lib talking heads in the MSM are ready for pay cuts or job loss

[Maverick68]

One of these bright young people is going to have an epiphany: America is a majority Center/Right country. Perhaps if they were to tailor their programming to reflect that fact, they might start gaining viewers.
This is why I believe at some point, the MSMedia WILL turn on the little “o”.
They will NOT go down with the ship, and as soon as one of them breaks ranks and reaps the rewards of “telling it like it is”, others will follow.
Same with network programming.

[abb]

http://www.broadcastingcable.com/article/326590-Upfronts_2009_Fox_Wraps_Upfront_Negotiations.php
Upfronts 2009: Fox Wraps Upfront Negotiations
Network says it has “achieved its primetime goal,” no word on CPM pricing or inventory

http://www.buzzmachine.com/
Rupert charges

http://www.guardian.co.uk/media/2009/aug/06/rupert-murdoch-charging-for-content
Rupert Murdoch’s move to charge for content opens doors for competitors

http://www.guardian.co.uk/media/2009/aug/06/rupert-murdoch-online-news-charging
Clear divide in fierce debate on future of newspapers on the web

http://blogs.tampabay.com/media/2009/08/is-nbc-risking-brian-williams-credibility-to-save-jay-leno-.html
Is NBC risking Brian Williams’ credibility to promote Jay Leno?

http://blogs.barrons.com/techtraderdaily/2009/08/05/pali-capital-coinstars-redbox-grows-as-threat-to-dvds/
Pali Capital: Coinstar’s Redbox Grows as Threat to DVDs

http://www.forbes.com/2009/08/05/nbc-internet-owen-thomas-business-media-nbc.html
Online, NBC Thinks Local

http://news.cnet.com/8301-17939_109-10303527-2.html
TiVo adds new Web videos, option to watch niche content

http://www.smartmoney.com/news/ON/?story=ON-20090805-000758-1403
Internet Ad Market Suffers Second Straight Decline In 2Q

[abb]

http://www.medialifemagazine.com/artman2/publish/Hereandthere/Fox_first_to_finish_upfront_negotiations.asp
Fox finishes off upfront negotiations
Other shorts: NBC: ‘We’ve fallen short past couple years’

http://www.mediabistro.com/tvnewser/fnc/fox_news_a_bright_spot_in_bleak_news_corp_earnings_report_123607.asp
Fox News a Bright Spot in Bleak News Corp. Earnings Report

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=111197
Nielsen Analysis Finds Digital Data Would Shift Billions Of TV Ad Dollars From Broadcast To Cable

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=111144
NBC Hopes Mojo Back To Push Fall Lineup

http://www.niemanlab.org/2009/08/naanielsen-stats-show-newspapers-own-less-than-1-percent-of-u-s-online-audience-page-views-time-spent/
NAA/Nielsen stats show newspapers own less than 1 percent of U.S. online audience page views, time spent

http://www.johntemple.net/
Nieman Journalism Lab uses Web traffic data to give good advice to newspapers

http://www.gannettoid.com/louisvilledesk.html
Louisville becoming newsroom ‘hub’

[Landru]

"One of these bright young people is going to have an epiphany: America is a majority Center/Right country."

I'm guessing they already realize that explaining why we're seeing what we are.
Plain & simple: reality's what they say reality is, don'tcha know.

"Perhaps if they were to tailor their programming to reflect that fact, they might start gaining viewers."

Perhaps.
Then again Socialists don't care about viewers.
Socialists care about an agenda thoroughly inculcated them since preschool. Just sayin'.

"This is why I believe at some point, the MSMedia WILL turn on the little “o”. They will NOT go down with the ship, and as soon as one of them breaks ranks and reaps the rewards of “telling it like it is”, others will follow."

HA!!!
3:1 says otherwise. LOL
See what's happening with the republic's rags?
They're going down fast by the bow.
See the rags changing?

"Same with network programming."

Not to be contentious or anything, but, what network programming?
Unless you mean MORE American Idle, Dancing With The Stars et al ad nauseum?

Ahhhhh, no thanks. ;^)

[Landru]

Here I'd have bet the farm you'd have lead-off with the Rupert Murdoch plan to charge for news story today, walt.

I'd have lost. LOL!!

[relictele]

TV is a prisoner of its linear nature (content, ad, content, ad) which is why the desperate TV types are spamming your screen with drop-ins, ‘wipes’ and product placement.

That linear nature gives the consumer a weapon - he can record, skip ads (including those incessant ‘billboard’ ads) and/or obtain an edited copy after the fact.

[abb]

Here I'd have bet the farm you'd have lead-off with the Rupert Murdoch plan to charge for news story today, walt.

That was posted a couple of times already by other posters. And I had put that story in yesterday's thread, too.

[Maverick68]

I understand the pessimism, but I stand by my prediction of the media breaking free from the obama-hypno-wheel at some point for a very simple reason: the media aren’t truly Socialists. They are soft underbelly Liberals which equates to total selfishness. Even their altruism is heavily weighted by their selfishness.
They are pure ego, and THAT’S why they see the world thru their little Utopian glasses, as they believe it makes them look sophisticated.
Some of these idiots are facing the very REAL prospect of losing the gravy train, and given the choice of giving up their elitist lifestyle or turning on little “o”, they WILL turn on him if it means survival via ratings.
Of course, I could be very wrong...

[abb]

http://www.poynter.org/column.asp?id=45&aid=168068
Cox decides to keep Austin American-Statesman

http://www.statesman.com/news/content/news/stories/local/2009/08/07//0807statesman.html
Cox takes Statesman off the market

http://www.newser.com/off-the-grid/post/231/this-is-ruperts-last-stand-making-you-pay.html&ct=ga&cd=5K7AM0rGpN8&usg=AFQjCNFqRqyBk1xSLT5DTAKp48ekMnS5qQ
This Is Rupert’s Last Stand: Making You Pay

http://paidcontent.org/article/419-if-wsj.com-is-the-model-news-corp.-isnt-building-a-news-fortress/
Murdoch On Leading The Charging Charge

http://www.philly.com/philly/business/20090806_Papers__reorg_plan_coming_soon__despite__precautionary__filing.html
Papers’ reorg plan coming soon, despite ‘precautionary’ filing

[abb]

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1004000816
Murdoch Vows to Charge for ‘All’ Online News — Critics Weigh In

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1004000811
Two NYT Co. Papers in California to Reduce Pay by 10%

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1004000806
Minnesota Daily Will Go Biweekly

http://www.businessinsider.com/rupert-murdoch-explains-his-plan-to-charge-for-content-online-2009-8
From Celeb Pics To The WSJ, News Corp Will Charge For Everything Online

[abb]

http://gawker.com/5331542/time-inc-folds-southern-accents
Time Inc. Folds Southern Accents