Dip in Upfront Dollars Likely Buyers Want to Examine Broadcast's Digital Options Before Committing All Budgets PAGE 4
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MAY 22, 2006 $3.99 VOL. 16 NO. 21 THE NEWS MAGAZINE OF THE MEDIA Dip in Upfront Dollars Likely Buyers want to examine broadcast's digital options before committing all budgets PAGE 4 THE UPFRONT Fall Season's Hits and Misses Buyers dissect networks' programming slates PAGE 5 THE UPFRONT New Shows' Digital Dilemma Studios, networks battle over rights to revenue PAGE 6 THE UPFRONT Saturday Night Is Ripe for Fighting Telemundo's variety show to take on Univision's PAGE 8 21> iii Telcos and cable duel over 0 2 franchising rules -change in VISITVIN ARANDVEL " X , COK TODAY a classic Washington dustup WDXNUDWa ****,1*******AUTUsi 3 -DIGIT 070 LDS PAGE 18 #NNO529152# CONT 8 0032 LAURA CYR BORDERS EXPRESS 42 MOUNT PLEASANT AVE WHARTON NJ 07981-2120 P0001 FASHION The Two -Piece Life Preserver: How a Write -Up on Swimwear Left Her Bedecked to De -Deck Have a brilliant weekend. THE WALL STREET JORNAL. WEEKEND EDITION Inspiring millions of readers at the start of each weekend. Market At Deadline Indicators NATIONIU.111: CALM I CBS, FOX LEAD THE PACK IN MAY SWEEPS I RECORD LABELS SUE XM OVER DIGITAL SERVICE With broadcast net- (Based on ra'ings through May 17, CBS and Fox are The major record companies sued XM Satellite works presenting their dominating the May sweeps. CBS is first in total view- Radio over its XM + MP3 service claiming "massive 2006-07 prime -time ers with 12.7 million (down 10 percent from a year wholesale infringement" of their recordings. The suit, schedules to advertis- earlier), according to Nielsen Media Research. That's filed May 16 in the federal District Court in New ers last week, discus- an advantage of 2.1 million over second -place Fox. York, calls the service a "digital download" service sions were more about But Fox ranks first among adults 18-49, with a 4.3 that has not been properly licensed. The dispute upfront buys for next rating/12 share (up 2 percent over this point last May), puts the spotlight on debates between record labels season rather than the and a 16 percent advantage over second -place CBS and satellite broadcasters over devices that record, current schedules. (3.7/10). With the season finale of American Idol this store or disaggregate music performed over the week, expect Fox to narrow the gap in viewers while subscription -based radio service. NET CABLE: QUIET extending its lead among adults 18-49 in both May Second-quarter scatter and for the season. ABC stands in I ADDENDA: is quiet as all eyes fall third place 2.4/9 in adults 18-49 (down Trevor Walton last week stepped on the broadcast nets. 8 percent) but delivered only 9 million down as Lifetime senior vp, original Late dollars are coming viewers (No. 4, down 7 percent). NBC, movies. Lifetime vp, original movies in from foreign auto, meanwhile, -anks third in total viewers Libby Beers will assume Walton's theatrical and financial (9.3 million, up 1 percent) but fourth in duties while the network searches for a services, while domes- adults 18-49 (3.1/9, down 3 percent). replacement...The latest proposal for a tic auto remains soft. federal shield law to protect journalists Nets are still reporting I CBS INKS DEAL WITH ARBITRON was introduced in the Senate last fair gains over last CBS Radio and Arbitron announced week. The Free Flow of Information year's upfront pricing. last week that the No. 2 radio station Act of 2006 would protect journalists owner signed a seven-year deal for the and media companies from having to SPOT 11I: MIXED portable people meter ratings service. reveal identities of confidential The Big Three's ad CBS will use PPM in the 35 markets it sources, and would also conceal spend decreased by 4.5 operates that are encompassed in source information held by telephone percent in first quarter Arbitron's PPM rollout plan. Pending companies and Internet service of 2006, according to Media Ratirg Council accreditation, providers...AOL last week closed on its the Television Bureau of Arbitron is on track to launch the pas- purchase of Lightningcast, a private- Advertising. Overall, for- sive, electronic audience measurement ly held company that specializes in eign auto grew its system in the top 50 markets, begin- American Baby Group's inserting advertising into video con- spend 4 percent, a trend ning in Houston in July. CBS' deal with Blatto nurtures the brand tent. The deal will allow AOL to run tar- that has continued into Arbitron strengthens the latter's Page 28 geted ads within broadband video second quarter. chances of remaining the predominant clips and dynamically switch out ads radio ratings measurement system for without having to pull the video file INTERACTIVE: STRONG the foreseeable future. Meanwhile, the Market Profile 10 from the server...PBS is adding seven The appetite for broad- band video inventory Media Audit, which has proposed an Opinion 16 shows to its existing roster of prime - alternative ratings system at the behest time titles available for viewing via continues to be rabid, of Clear Channel Radio, said it was Media Elite 22 video on demand, including Nightly as publishers report "undauntec" by the news. Business Report and PO. V. sellouts. Additional Mr. 1V 30 content from broadcast players should open up I SEN. VOTES TO RAISE FINES I CORRECTION: The U.S. Senate late last week voted to In the May 15 issue, the Mediaweek even more opportuni- increase fines for broadcast indecency tenfold, to Magazine Monitor should have noted that Woman's ties for advertisers. $325,000, ending more than 15 months of congres- Day's ad pages through June totaled 859.5, rising 9 MAGAZINES: ACTIVE sional inaction on the issue. The House early last year percent compared to the year prior. Retail is showing gains, passed a measure hiking fines to as much as while apparel, toiletries $500,000. -he two chambers need to sort out differ- I CLARIFICATION: and cosmetics, and ences between their versions before any fine increase Also in the May 15 Mediaweek Magazine Monitor, tech are charging can become law. The House bill places TV and radio Power & Motorboat was inadvertently omitted. ahead. Financial servic- licenses in jeopardy after three violations of indecency P&M's ad pages for June 2006 totaled 203.55, com- es are cooling off in regulations. and contemplates fines on performers. pared to 205.10 pages for June 2005, off 0.79 per- some men's titles and The Senate bill, proposed by Sen. Sam Brownback cent. Year-to-date, the monthly had 1,312.48 ad food is also soft. Mid- (R -Kan.), is limited to increasing fines without other- pages versus 1,274.99 for the same period last year, level auto is stalled; wise changing current regulations. rising 3 percent. luxury is strong. mediaweek.com May 22, 2006 MEDIAWEEK 3 THE MARKETPLACE BY JOHN CONSOLI MEDIA WIRE CW Creates Content Wraps Upfront Dollars Within Commercial Pods CW will offer advertisers Content Wraps, a new, innovative way to adver- tise exclusively in commercial pods May Be Held Back within its shows for next season. Each Content Wrap consists of one Broadcast nets could see totals dip due to buyer two -minute commercial pod that will contain a portion of a short story. The desire to save money for '07 digital platforms vignettes offer advertisers any one or all of these possibilities: a 15 -second A,firstglance, the looming upfront adver- interesting upfront," said an executive of a sponsored lead-in, product integration tising marketplace looks as if it will be a major media -buying company. "There are within the story, a screen crawl during tough one for the broadcast networks. Why? no rules. But it seems like no network will the story and a lead -out spot. The total amount of revenue the networks can reach its ad -dollar targets." Within a night's two-hour program- expect to take in for the 2006-07 season could Another major media -agency executive, ming block, three distinct two -minute be down significantly-closer to $8 billion echoing thefeelings of several others, Content Wraps are expected to run for rather than the $9 billion committed last May explained, "Wall Street needs to understand the same advertiser and storyline. The for'this season-for several reasons. that if we hold back money, it is not an indi- stories themselves will be created with Before Wall Street hits the panic button cation that advertisers are pulling money or advertiser participation. "It will be a col- and sends broadcaster's parent companies' moving out of broadcast. That would be a laborative effort," said Bill Morningstar, stocks downward, though, media buyers cau- wrong assumption or assessment. Money head of sales for the CW. "We would tioned that if the market plays out that way, will be held back for a number of reasons, come up with stories that have both it does not indicate a weakening or negative but primarily to allow us to get a better read entertainment value for the viewers and opinion of television advertising. on the marketplace and what the networks something that can meet advertiser Several media buyers told Mediaweek they will have to offer in the first half of 2007." brand objectives." plan to hold back upfront ad dollars as a hedge Media buyers are anticipating that video - An example shown during the CW's for the second half of next TV season. They on -demand deals between the nets and cable upfront presentation involved a story explained they want to make sure that if the operators will multiply next season, and those about a couple set to be matched up, networks begin expanding alternate distribu- deals will foster different types of advertising undergoing makeovers before meeting tion of their programming-and that viewers opportunities.