So Far, Real Good

Cable World,  June 2, 2003  

• E-mail
• Print
• Link

Byline: SHIRLEY BRADY

Following the upfront frenzy two weeks ago that saw cable networks for the first time ink advertising deals concurrently with broadcast networks, last week saw agencies and advertisers more squarely focus their attention on cable. As a result, cable in aggregate is better than half done with its upfront sales.

Early upfront cable movers such as Joe Abruzzese, ad sales president at Discovery Networks, reported that he was more than 75% done by Friday and that revenue was up 40% to 50%. Last week's business was primarily "additive," he said, building on deals inked for Discovery's 13 networks the week before.

David Levy, president of Turner Entertainment sales and marketing and Turner Sports, called last week "interesting but very good, and we're still working late this week." With double-digit CPM increases and volume up in the high double digits, Levy said categories breaking last week included wireless and retail.

Mark Rosenthal, president and COO of MTV Networks, described last week's cable upfront as "fairly methodical and orderly. We are seeing huge volume - in the high, high, high double digits - across all our networks, and we're in the home stretch now."

Fox News Channel, which also wrote business in tandem with broadcast two weeks ago, is on track to "close the bulk of our business" this week, according to VP and national sales director Roger Domal. "Everything's been pretty orderly this week," he said on Friday, "but that's the hallmark of cable." Among the categories driving Fox News's high double-digit CPM increases are automotive, financial, packaged goods, over-the-counter and direct-to-consumer drugs and "much more retail business than in the past, too."

Lyn Andrews, president of ad sales at the Weather Channel, said she was "about halfway done" on Friday, with high single- to low double-digit CPM increases.

"There's a lot of money working," she noted, "and advertisers are particularly interested in our integrated concept with both the Weather Channel and weather.com; our new daypart strategy; and shows such as Storm Stories and Road Crew."

TechTV is also seeing a network/online combo pay off. The network's SVP of ad sales and strategic relationships, George Ehinger, said that TechTV for the first time in an upfront wrote deals (about 40% of his business by Friday) that included both network and online advertising, a big part of his pre-upfront pitch. "As a midsized network we're seeing meteoric growth in terms of new categories and advertisers," he said.

Dave Cassaro, EVP of sales and distribution at E! Entertainment Networks, said late Friday afternoon he was "about 40% written/sold at this point, but there is still a lot of business going on."

Court TV EVP of ad sales Charlie Collier said that net "moved a lot" last week, with "more business each day" as the week progressed, with a "methodical and not as frenetic" pace by Friday helping deals get done or in shape to close this week. He expects to be within the marketplace on pricing but "way up on volume." Merrill Lynch analyst Jessica Reif Cohen opined Friday that Court TV should see 9% to 12% CPM growth, in line with other cable networks.

Bill Abbott, EVP of ad sales for the Hallmark Channel, expects to be at the halfway point this week. "I'm hearing cable CPMs in the high single digits to low double digits across the board, and we're also on track to have a great upfront here.

Oxygen EVP of ad sales Gina Garrubbo said "we're in full swing, and while we're not as far along as Discovery or Turner, things are happening pretty quickly and we're going to get increases." She expects to close retail, wireless and entertainment deals this week.

THE NEXT QUESTION:

*Buyers say Lifetime, which has suffered in recent ratings, is holding the line on pricing. Can it continue to do so as the upfront begins to wind down?

COPYRIGHT 2003 Access Intelligence, LLC
COPYRIGHT 2008 Gale, Cengage Learning