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Vahe Habeshian
Vahe Habeshian   BIO
06.25.07

Some Syndication, Cable Nets May Seek Double-Digit Increases in Upfront


MediaBuyerPlanner: Like their broadcast brethren, cable networks are expected to ask for double-digit increases in the upfronts, in the hopes of actually pulling in 5 percent to 8 percent increases. Many established cable networks lose 5 percent to 8 percent of their audience between programs and commercials, which is significant because many deals this year are being inked on commercial ratings rather than program ratings.
Networks that target older viewers may be more likely to get their intended price gains, writes MediaPost. That’s because, according to one media executive, those networks – TNT, TBS, A&E, USA Network, Lifetime, Discovery and TLC – have viewers who tend to stay with programs through commercials.
Lifetime and TBS lose only 5 percent of their audience, TNT and USA Network lose 6 percent, A&E loses 7 percent, and Discovery and TLC lose 8. Nickelodeon loses only 1 percent of its viewers.
Younger-skewing networks lose more viewers during commercials. MTV networks, for example, loses 12 percent of its viewers at commercial time. Oxygen loses 9 percent, ESPN Classic drops 12 percent, Bravo slips 10 percent, and AMC loses 10 percent.
Syndication generally doesn’t lose as many viewers during commercials, but there will likely be a wide range of pricing because of shows that tend to underperform. Programmers may ask for as much as 10 to 12 percent or more in CPM increases for shows such as Oprah Winfrey and Dr. Phil – but they are likely to settle for prices in the 6 percent to 9 percent range. Other top shows such as magazine programs and some off-net sitcoms may see similar daytime pricing hikes.
Lower-tiered syndication programs may snare only 2 percent to 4 percent increases.
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