• Reuters via Yahoo, Wednesday, November 7, 2007 11:15 AM

TV advertisers are poring over their contracts as a rash of reruns comes on air as a result of the screenwriters' strike--and this could drag down ratings. The walkout by the Writers Guild of America is hurting late-night television first, as shows like NBC's "The Tonight Show With Jay Leno" and CBS' "Late Show With David Letterman" are already in repeat mode. Such reruns usually pull lower numbers than new fare, and marketers are worried their dollars are going to waste.

"The problem with TV is that we negotiate ratings," says Dennis McGuire, a Carat executive. "That's the currency by which we live and die." And with the strike, "buyers will have to go back and reevaluate the ratings that they had forecast for certain programs," he adds. "The smart buyer is already looking at his or her schedule and may want to go back to negotiate, if the ratings are affected by the strike."

Dramas and sitcoms should hold up for the moment, as studios have stockpiled enough advance episodes to keep fresh programming going until early next year. "Original episodes do better than reruns," says Jack MacKenzie of Frank N. Magid Associates, a TV research firm. "As soon as the networks resort to reruns is when they may have problems." MacKenzie adds that sponsors may seek to renegotiate their deals to obtain more commercial time as compensation.

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