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Vahe Habeshian
Vahe Habeshian   BIO
06.14.07

NBC, Group M Ink $1 Billion Upfront Deal


MediaBuyerPlanner: The first major upfront deal has been inked: Group M and NBC Universal have finalized a deal worth nearly $1 billion, according to media agency executives.
The deal encompasses NBC, USA Network, Bravo, Sci-Fi and Telemundo, and includes all dayparts as well as multi-platform marketing opportunities for a majority of Group M clients represented by agencies MindShare, Mediaedge:cia and MediaCom, writes Mediaweek.
While it is difficult to pin down just what CPM was paid (because the deal covered all dayparts and multi-platform opportunities), media executives are estimating that NBC U got 6 to 7 percent increases over last year’s program pricing. NBC was originally hoping to get double-digit increases, while ABC, Fox and CBS were hoping for 8 to 9 percent increases, according to MediaPost.
Some insiders are unimpressed by the dollar amount of the deal, with one saying that Group M is simply hoping to kick start the market. Another points out that $600 million of the deal could be going to NBC, $200 million for the USA Network cable group, $20 million for Telemundo and another $10 million for NBC’s digital platform. When looked at that way, the deal is not that large.
Group M and NBC confirm that a deal has been done, but wouldn’t confirm any details.
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