Media buyers said they have written a few deals with cable networks, which also compete for upfront dollars, but there have been no confirmed deals on the broadcast side of the business. The upfront has been sluggish for weeks because of an impasse over price. Despite lower ratings, competition from cable and the recession, the broadcast networks, which usually lead the market, are seeking to raise ad rates as they have done for years.
What a crazy idea, a product that is worth less, costs less. Amazing concept, that. No wonder the media has a problem getting their heads around it.
Sitting across the table, media buyers are adamant that their recession-plagued clients won't pay higher ad rates and want to see price rollbacks. At one point, media buyers were talking about double-digit decreases but now it appears they would be satisfied with something in the single digits.
Typically, the broadcast networks sell as much as 80 percent of their primetime spots in the upfront market. Whatever is left is sold later in the "scatter" market, where prices vary depending on demand. There is talk that the networks would rather book less upfront business, gambling that they can unload their spots later at higher prices, rather than cut rates.
So, their master plan is: ignore our huge repeat customers and try to sell our overpriced crap later in dribs and drabs to people who walk in off the street. Brilliant, I say, it's no wonder that television is in the fine financial shape it is today.