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23 May 2006

Studios Set A Slo-Mo Pace, Hit Pause On DVR Playback

on MediaPost Publications
by Wayne Friedman, May 23, 2006


IN A SIGN OF HOW 2006-07 network upfront ad sales may pace, a bellwether category doesn't seem in any rush. As of late Monday, the major movie studios - typically the first to make TV upfront advertising deals - weren't exactly clamoring to start the ball rolling after last week's upfront program presentations. The reason for the delay: the studios are waiting for the networks to finalize their TV ratings policies concerning playback by digital video recorders. The movie and automotive ad categories will be closely watched this season, because they are both high-demand categories that typically move fast and pay high ad prices, enabling the networks to set the advertising bar for other ad categories.

Movie marketers historically are among the most concerned with the positioning of their commercials in specific TV shows - especially on Thursday night -- as well as the flexibility to move their inventory. In the past, this has often meant they would rush to market and pay the highest rate of any advertising category. But the pace appears to be slowing down this year, due in part to discussion over the possible inclusion of DVR playback in negotiations. Late last year, Nielsen began including DVR households in its sample, and has been reporting three types of ratings: so-called "live," live plus same day of DVR playback, and live plus seven days of DVR playback.

"Everybody is playing the waiting game," says Geoff Robison, senior vice president-national broadcast for Palisades Media Group, the Santa Monica, Calif.-based media agency that buys TV ad time for number of small to mid-size studios. "Nobody is going to move until this gets resolved."

Early on many network executives took positions that upfront negotiations would be based on live plus

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