Fox Upfront Sales 70 Percent Complete, Chernin Says

Jun 14, 2006  •  Post A Comment

Fox Broadcasting is about 70 percent done with its upfront television advertising sales, News Corp. President Peter Chernin said.

Fox is getting price increases of 2 percent to 3 percent based on cost-per-thousand basis, Mr. Chernin said Tuesday during an analysts meeting.

Mr. Chernin said Fox had made a strategic decision “not to go for huge increases in CPMs, because we’re already at the top of the range” versus other networks. Fox’s plan is “to go for increases in volume to try to monetize much of the ratings increases” the network generated during the past season.

Ad buyers have said that with clients spending less on television than last year, none of the networks are likely to get big price increases per thousand viewers they promise advertisers. Buyers expect the total take for this year’s upfront, where about 70 percent of TV advertising time is sold, to decline from last year’s $9 billion.

Mr. Chernin said he expected Fox’s total revenue to rise in the upfront ad market compared with last year, supported by larger CPM increases than any network other than ABC.

He said ABC hadn’t really started to sell upfront ads and that it was his sense that CBS and NBC were 60 percent to 70 percent done with their upfront sales.