The Peacock Gets Plucked
As the battle for next season’s ad dollars winds down, the winners and losers have emerged. In the winners’ corner: ABC, CBS and several cable networks, which ran ahead early and held their lead through May and June. In the opposite corner: beleaguered and Friends-less NBC, which trailed the other five broadcast networks in the closing weeks of May, and admitted in early June that it had cut its rates for 2005-2006.
This year’s upfront revealed a reversal of sorts in the pecking order, not only between cable and broadcast, but also among broadcasting’s Big Six nets. Driving the turn: returning smash hits on which media buyers wanted to spend.
Last year, the broadcast upfront took in a collective $9.1 billion to $9.5 billion, according to industry analysts. They are predicting that number will remain steady or slightly increase in 2005, by the time all the deals are counted. Either outcome translates into positive news for the networks, given the fierce competition each face against other entertainment hubs, including the Internet and video games.
“You’ve got the horse race between the networks,” says Jim Chabin, president and CEO of PROMAX and BDA, an industry association that represents TV executives and broadcast designers. “You now have such good marketing teams at all the networks, in any given book you wouldn’t want to bet.”
As with horse racing, “anyone can break through and win [at network TV],” Chabin adds.
ABC and CBS emerged as the early “must buys” this year, largely backed by their solid programming in the last year. They were followed closely by FOX, UPN and The WB. Network hits, including Desperate Housewives and Lost on ABC, CSI: New York on CBS and FOX’s 24 re-energized broadcast TV, prompting a ratings boost unlike any the networks have witnessed for some time.
Early on, NBC, the former leader of the pack, sat on the sidelines hoping its fourth place finish with viewers aged 18-49 wouldn’t dismay advertisers. No such luck: In early June, the network lowered its rates for media buyers for the first time in four years, some as much as 3%. At press time, analysts projected the NBC upfront tally at $2.1 billion, down from $2.8 billion in 2004.
The loss represents “more of a balance of the marketplace based on NBC’s loss in ratings over the year,” explains media analyst Jack Myers. NBC’s pricing, however, remains close to its competitors, as the network’s historic rates have averaged 10% to 15% more than ABC and CBS, he says.
“Advertisers have a lot more options than ever before,” Myers says. “Network television is still the gem, the high-priced, most valuable, most desirable gem. And NBC is part of that mix. It’s not hot, but it’s still got a lot of quality content.”
NBC executives were still negotiating at press time and would not confirm or deny any estimated figures.
At Disney-owned ABC, however, there was plenty of cheering as buyers scrambled aboard the network’s primetime blocks. This year, ABC raked in $2.7 billion in advertisement commitments, which include cost-per-thousand (CPM) increases ranging from 4% to 6%. About $600 million is slated for sports, including Monday Night Football, National Basketball Association games and the college football Bowl Championship Series.
Credit the sizzle to such ABC mega-hits as Desperate Housewives, Lost and Grey’s Anatomy — the very shows many advertisers have topping their wish lists. ABC wrapped up its 2004-05 season with a 12% jump in total viewers and a 16% uptick among its key demographic, consumers 18-49.
“We have strong momentum, and returning clients knew that they would be getting an upgraded schedule based on our strong year-to-year ratings increases,” explains Mike Shaw, president of sales and marketing for ABC Television Network.
ABC is adding 12 new series to its slate, including two new comedies and three new dramas for the 2005-06 season. The network is sandwiching two new shows, Freddie, a comedy, and The Night Stalker, a new drama laced with the supernatural, around Lost, which will move to a new 9 p.m. time slot on Wednesdays.
“Some say network TV is dead and people don’t watch dramas, but then Desperate Housewives and Grey’s Anatomy and Lost come along,” Chabin says. “Television networks are still the place where you can mass an…audience behind a show and deliver.”
Network execs are happy to agree — especially those eagerly seeking that next big hit.
“The rumors of our death are greatly exaggerated. We’re using our imagination a lot more,” explains Vince Manze, president and creative director for the NBC Agency. Speaking last month at the Star Power conference, hosted in Los Angeles by the Promotional Marketing Association, Manze told attendees, “You have to run a little faster to keep up…[and win] people’s time and eyeballs.”
Starring roles
For other big players, the name of the game in this year’s upfront will come in the form of increased branded entertainment deals, sponsorships and tie-ins.
Branded entertainment is a top option advertisers are using to break through the clutter, experts say. Last month, for example, it was reported brand giant Procter & Gamble was slashing its estimated $2.5 billion budget for commercial TV spots. P&G is expected to reallocate a large share of that spending into product placement.
According to a recent Association of National Advertisers survey of 118 senior marketers, 42% say the top reason for including branded entertainment into the mix is to build a stronger connection with consumers. The survey found that 85% of marketers who dabbled with branded entertainment use TV programming as their marketing vehicle. Eighty percent of those surveyed say they expect branded entertainment would be a part of their upfront deals in the future — an increase of 20%.
“Advertisers are clearly looking for these kinds of deals and opportunities,” says Dave Poltrack, executive VP-research and planning, for CBS Television. “It has a tremendous payoff for the advertisers and the broadcaster when it is done properly.”
CBS broke new ground in brand integration via its surprise hit, Survivor, which just wrapped on its tenth locale. But it wasn’t an easy start, says Ron Scalera, executive VP and creative director for CBS Marketing Group.
“A lot of people didn’t want their brands associated with a show that stranded people on an island,” Scalera recalls. “But now, believe it or not, we get to pick and choose [which] we want on our show.”
Likewise, NBC has generated a big payoff with branded entertainment via The Apprentice, the reality show featuring real estate mogul Donald Trump. This fall, the cultural phenom returns for another season with a new addition to the boardroom, The Apprentice: Martha Stewart. The new version keeps the format of the original show, but highlights Stewart’s identity. Look for as many brands to be integrated in this incarnation, many undoubtedly tied to the star’s persona as a domestic diva.
And if Martha isn’t frightening enough, producers will try to lure viewers with a spook-fest offering. The WB enters the line-up with Supernatural, a new drama guaranteed to scare the daylights out of viewers. On Fridays, CBS will add Ghost Whisperer, a drama about a newlywed with the ability to communicate with earthbound spirits and Threshold, a suspenseful drama about alien invasion.
CBS’s fall Friday night lineup reflects the network’s “edgier” side with higher concept shows to attract younger viewers, Poltrack says. Last month, the network emerged as the early leader in revenue commitments among the six networks, securing $2.6 billion in promised ads, a 13% increase from a year ago, according to the network.
The network attributes that gain to its solid ratings in the Survivor and across the CSI brand series, and to its conservative approach to programming. Viewers and advertisers look to CBS because it is considered “a little more solid across the board, [with] a low, downside risk,” Poltrack says.
CBS remains a dominant force among viewers 25-54, but is focusing its efforts on other demographics. Last season, the network was No. 1 with viewers between 40-50, and now the network remains tops with viewers 30-40, Poltrack says.
“Every year, we move a demographic down and get more strength,” he says. “Our philosophy has always been to put on programs that appeal to all demographic groups.”
UPN, a CBS sibling under corporate parent Viacom, was projected to secure $350 million this year, up from $325 million in 2004. The expected hike was due in part to buzz about the network’s new comedy by Chris Rock, Everybody Hates Chris, which will debut on Thursday nights.
In addition to the Rock show, the network is adding a second new comedy, Love, Inc. with Shannen Doherty and Holly Robinson Peete, and a new drama, Sex, Lies & Secrets starring Denise Richards.
Prioritizing the audience
Changes are afoot at The WB Network. Starting in January, the network will drop its weekday 3 p.m. to 5 p.m. children’s block and replace it with syndicated shows targeting 18-to 49-year-olds. The change would link to the network’s primetime programming line-up, says Brad Turell, executive VP-Network Communications, the WB. To compensate its younger viewers, The WB will expand its Saturday morning children’s programming by one hour.
Asked to explain the switch in programming strategy, the network acknowledged that viewers and advertisers can find 24-hour children’s programming on cable networks. The WB has offered its weekdays’ kids block for the last decade, Turell says.
“With the advent of multiple 24-hour animation and kids’ cable networks…that need is being satisfied,” Turell says.
FOX sold $1.6 billion in ad commitments for the upfront, flat against 2004. Parent company News Corp. unveiled five new dramas and two new comedies for the fall. Unlike previous years, FOX will shy away from reality show offerings and focus its attention on scripted series, says Scott Chabin, a spokesperson for FOX Broadcasting Co.
This fall, the network is touting new dramas, Prison Break and Head Cases, as must-watches. On Sundays, FOX continues its all-comedy lineup with King of The Hill, The Simpsons and Family Guy. But to keep the programming fresh, it is introducing to that night The War At Home, the only live-action series to debut on Sundays. Veteran hit shows, including 24 and American Idol will return to the network for another season starting in January.
As the new season debuts loom, FOX and the other networks will scramble to adapt — with last-minute spot sales and down-to-the-wire script changes to allow a role for paying brands. Of course, the ultimate decision lies with viewers. Let the races begin.
NEW OPPS
Presented by
Theatrical
CHARLOTTE’S WEB
Nickelodeon Films/Paramount Pictures, June 2006
This live action re-telling of E.B. White’s timeless tale comes with a contemporary twist. Follow the story of spider Charlotte (voiced by Julia Roberts), her porcine friend Wilbur and their cadre of farm animals (voiced by such talent as Oprah Winfrey, Robert Redford, Kathy Bates, John Cleese, Thomas Haden Church, Cedric the Entertainer and Reba McEntrire). The film also follows 12-year old Fern (Dakota Fanning) and highlights her journey to maturity.
Home Entertainment
ROLL BOUNCE
Fox Home Entertainment, Q1 2006
In the late ‘70s when roller skating was a way of life, X (Bow Wow) and his pals ruled. But when the doors of their local skating rink close, an era ends. The boys venture into foreign territory — uptown’s Sweetwater Roller Rink, with its over-the-top skaters and beautiful girls. To prep for the showdown of the season — the Roller Jam Skate-off — X manages to help himself and his dad (Chi McBride) get on track.
VALIANT
Buena Vista Home Entertainment, Dec. 2005
Set in WWII, Valiant is a lonely and comically misfit pigeon going through boot camp at the Royal Pigeon Service. Vastly unqualified for the job, the avian hero squeaks his way through RAF training and is abruptly sent on the most important mission of the war.
TV
GET SCHOOLED TOUR 2006
GSN, The Network for Games, Feb. 2006
GSN launches its fourth annual Get Schooled Tour., an education-focused game that searches for vocabulary superstars! It will stop in 10 U.S. markets to give away $10,000 in college tuition to one smart kid in each city. The tour kicks off in February 2006; it ends with a tournament of champions in late May.
Music
JOSH KELLEY — “ALMOST HONEST”
Hollywood Records, August 2005
The singer-songwriter’s 2004 top-10 hit “Amazing” won him raves as he performed alongside Dave Matthews and Goo Goo Dolls. His new album was produced by Matt Wallace, whose discography includes Maroon 5 and John Hiatt. The first single off the album, “Only You,” shipped to Hot AC and Top 40 radio in early June. The entire album “Almost Honest” comes out on August 23. Josh’s target audience is women aged 18 to 34, who reside in upscale and mid-scale neighborhoods. He’s expanding his demographic reach with new relevance to teens.
Content for New Opps is provided by The L.A. Office. Don’t miss RoadShow 2005: hundreds of opportunities, two events to find them all. Visit www.laoffice.com/roadshow for details.
