Despite large drops in number of viewers and wider adoption of ad-skipping technology, TV networks have been making more money this year because at the end of the day, who else can bring in so many viewers?
Last week, after NBC Universal clinched a $1-billion deal for its television properties with Group M, one of the biggest advertising-buying companies, the floodgates opened in television’s annual ritual known as the “upfront” market. Since then, the networks have been busy processing orders for their time. Fox has been selling time for rates that are nearly 9% higher than last year, and ABC’s prices are up by about 10%.
We can’t help shake the feeling that we’re not being told the whole story here. Are the networks making these premiums simply because media buyers are that desperate? Or is it because the networks have been promising ancillary deals that provide alternatives to traditional 30-second spots that they then bundle and sell to Ad buyers?






