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Report: ABC scores on ad rates- - 5/26/05


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  • Report: ABC scores on ad rates- - 5/26/05

    Resurgent television network poised to be first to finish early sales for fall, sees rates increase.

    ABC, the Walt Disney-owned network that pulled itself out of a ratings slump this year, has lined up initial ad sales at higher rates than last year, according to a new report., an advertising industry trade, reported Thursday that ABC is on track to be the first broadcast television network to complete sales for the coming fall television season.

    The advance selling season, known as the television "upfront," kicked off last week as the six broadcast networks paraded their fall lineups before advertisers. In the upfront, networks strike deals with advertisers at set rates, selling as much as 80 percent of available commercial time. The remainder is held over for sale closer to airtime, when rates fluctuate.

    The primetime upfront is valued at more than $9 billion. Including cable, syndication and other non-evening programming, roughly $23 billion worth of advertising deals are struck during the television upfront.

    Overshadowing this year's upfront are signs that advertisers are shifting more dollars away from television advertising and to newer mediums like the Internet, now the fastest-growing segment of the advertising industry.

    The network television industry has been roiled in recent years by the growth of alternative forms of entertainment, including cable television, video games and the Internet, as well as the growing popularity of ad-skipping digital video recorders.

    For these reasons, many media industry analysts are predicting a lackluster upfront for the television networks. Merrill Lynch forecasts this year's primetime upfront will be flat or slightly up versus last year, at about $9.1 billion.

    That's better than last year's 2 percent decline, according to Merrill Lynch, but well below the torrid 14 percent increase two years ago.

    ABC's deals, as reported Thursday, appear to be in line with analyst estimates.
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