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Report: Networks Owe Advertisers Hundreds of Millions of Dollars in Ratings Shortfall

Aug 17, 2015  •  Post A Comment

With the new fall TV season set to start next month, both buyers and sellers need to decide how to make advertisers whole from huge ratings shortfalls this past season, writes Claire Atkinson in the New York Post.

“With the new fall TV season approaching in a matter of weeks, buyers calculate that top cable and broadcast networks owe hundreds of millions of dollars in airtime that wasn’t delivered this season,” Atkinson writes.

Her story continues, “‘There is a huge liability on the books,’ one senior network executive confirmed. ‘It’s the first time you saw the top five to 10 networks on the decline. It hasn’t recovered and it’s going down more.’

“Added one media buyer: ‘Across every network, including broadcast networks, it isn’t hard to get to hundreds of millions of dollars [in lost ad revenue.] That wouldn’t be far-fetched.’”

The solution? The story mentions these options:

“Jam more ad spots into shows, [or] roll over make-goods into the next quarter (and risk losing business down the line), [or] give cash back.”

The article adds, “Among the networks hardest hit are those facing the biggest year-on-year declines, according to ad executives. Those include NBCUniversal-owned MSNBC, Turner’s TNT/TBS, youth-centric Viacom channels like Nickelodeon and MTV, and A&E TV Networks.”

One Comment

  1. You would how that the programmers of these networks with precipitous ratings declInes are all fired. Sorry, but clearly they failed miserably in doing theit jobs, which is to select and acquire the correct programming to maintain if not increase their network’s ratings. Nothing had about that too understand, and a well-run network will hold their managers especially in programming accountable.

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