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Network Advertisers Gain A Little, But Not A Whole LotApril 30, 2010 – 3:12 pm |
 Abdul Fattah Ismail |
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The four major networks are slowly seeing advertisers pay for prime-time spots again after the drop off from 2009. According to Advertising Age, they should net approximately $8.26 billion by the end of this year. That is still below the levels of the last decade, especially in the middle. Fox, on the strength of programming like American Idol and News Channel Personalities such as Glenn Beck, is projected at nearly $2 billion, up 22% from 2008. This could fuel a bidding war between television executives and media buyers. Executives may increase the prices of upfront fees to recoup lost revenue. Media buyers will then turn their budgets into emerging avenues like cross-platform advertising and digital. It’s also possible that traditional television revenue is slowly losing its status as the benchmark of profit. 
The advent of DVR has also given more power to the consumer in terms of content viewing. In the old days, a favorite television show would have families organize their lives around it, since it aired at a distinct day and time slot. Back in the day, we had to eat before Family Ties, A Different World, The Cosby Show, Sanford, and so forth. Seinfeld would have had no chance to succeed in today’s environment since it didn’t hit a ratings stride until the fourth season. Networks don’t have that level of time or patience anymore. It’s a microcosm of our flat lifestyle in general, but even more absolute in the television industry. The executives are in for a fight that they may not win.
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