Fox Closes Upfront Sales on a Down Note LA Times, Bloomberg
Fox has wrapped up its upfront advertising sales, but after a dismal prime-time season, the network saw its commitments decline by 8%, reports the Los Angeles Times.
The network sold about $1.75 billion in advertising commitments, down from about $1.95 billion a year earlier, reports Bloomberg.
Despite the lower dollar amount, Fox increased its average ad rates by about 5% to 7%, with the network selling about 80% of its advertising inventory for the 2013-14 season.
"Buyer demand has come in a bit weaker than last year with 'reported' pricing in the mid-single digits," Nomura Securities media analyst Michael Nathanson wrote in a report Wednesday, the Times notes. Nathanson added, "The underlying TV economy is not growing, while dollars are shifting out of broadcast and into cable."
Fox was hurt by a steep ratings decline for its longtime hit "American Idol" this past season, the piece notes, with the competition show dropping 20% in the ratings.