Saturday, June 4, 2011

Fox Completes Primetime Upfront Ad Sales

NEW YORK - Fox made it official Thursday afternoon, saying it has become the first broadcast network to complete its upfront advertising deals, and it may have made around $2 billion.

Oberservers had expected that Fox - as it had done last year - would lead the way with activity at other networks expected to step up now.

"With the strength and stability of our schedule and the exciting addition of The X Factor and our other new series, Fox has concluded its primetime upfront sales, achieving significant growth in both volume and pricing, consistent with our position as the number one network," the network said in a statement.?

It didn't detail the size of ad rate increases, but observers believe Fox's prices were on average up slightly more than 10 percent over last year, compared with high single digit percentage gains last year.

Fox's upfront ad commitments may have risen to around $2 billion or maybe even slightly more, according to AdWeek, which cited analyst estimates.

UBS analyst John Janedis had on Wednesday estimated that Fox decided to sell as much as 90 percent-plus of its primetime ad inventory for the 2011/2012 season in the upfront at price increases of around 10 percent.

"As first mover, Fox apparently went for volume versus maximizing price increases (upcoming new shows such as X Factor play a role in this decision)," Janedis said in a report. "We believe this could limit the [price] increase available for ABC/CBS given the typical pricing differential between the top two or three nets."

Movie ad dollars are typically key for Fox, according to AdWeek. Media executives have said that retailers and other marketers also went into the upfront ready to spend.

Email: Georg.Szalai@thr.com

Twitter: @georgszalai

Source: http://feedproxy.google.com/~r/thr/business/~3/uWS3US8SCUM/fox-completes-primetime-upfront-ad-194382

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