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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters TV dealmaking season wraps up; prices, volume down Thu Aug 6, 2009 8:16pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Paul Thomasch NEW YORK (Reuters) - Advertisers bought about 15 percent less commercial time from networks ABC, NBC, CBS and Fox for the upcoming TV season and -- for the first time in years -- paid less for the airtime they did purchase. Advertising and broadcast television executives said nearly all of the dealmaking for the 2009-2010 TV season had wrapped up by late Thursday, following months of what they described as protracted and frustrating negotiations. Even after the completion of the upfront season, when TV networks often sell about 75 percent of their commercial time, the two sides disagreed about who was to blame for the delay. The upfront market is often finished in June. "The media agencies were in a tough spot between client expectations and market realities," said one TV executive, referring to the buyers who negotiate time on behalf of advertisers like Procter & Gamble or Ford. "It took us a month to find equilibrium there." An executive at a media agency took another view. "The buyers were hearing it loud and clear from clients, they needed to get better value in the market. Our clients were insistent. Eventually, the TV networks understood that. They understood they needed to get into negative pricing." Executives on both sides, who spoke on the condition of anonymity because they did not want to be seen negotiating in public, agreed that the upfront market would be about 15 percent smaller than a year ago, when about $9 billion worth of deals were struck. What is more, prices fell for the first time in eight years. News Corp's Fox, Walt Disney Co's ABC, and CBS Corp's CBS agreed to deals at rates about 4 percent below those of a year ago, according to various media executives. NBC, majority owned by General Electric and in last place in the prime-time ratings, struck deals at slightly deeper discounts. An NBC spokeswoman confirmed that it had completed its dealmaking, but declined to comment on details about pricing or volume. ECONOMY RISING Tom Staggs, chief financial officer of Disney, said during a call last week he was "comfortable with the rates ABC has been achieving," although that network, too, declined to discuss specifics. Jon Nesvig, president of sales at Fox, said in a prepared statement that the network had "achieved its primetime revenue goal" and that with "a broader economic recovery seeming to take hold, we are very comfortable in our marketplace positioning for next year." Indeed, all of the broadcast networks appear to be banking on selling the remaining prime-time commercial inventory at higher prices in the so-called scatter market, the term used for last-minute sales. CBS Chief Executive Les Moonves on Thursday said that "we have retained more inventory to sell in the scatter, and we like our position as the economy continues to improve." Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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