Fox will make a bold advertising move this fall for a couple of new dramas by cutting in half the number of prime-time advertising minutes to 5 minutes an hour. Under an effort called "Remote Free TV," Fox will be cutting back national advertising inventory first on "Fringe," the new sci-fi drama from J.J. Abrams, which is scheduled to debut the last week in March. Fox made the announcement during its upfront presentation to advertisers and media-buying executives on Thursday in NYC. Jon Nesvig, president of advertising sales of Fox, said the network would also look to cut back on the length of commercial pods--and would cut back somewhat on promotional time of other shows. Media-buying executives also speculated Fox would ask its affiliates to see whether they would cut back some commercial time. For a long time, media buyers have complained about commercial clutter--that it was making their marketing messages less effective and that it caused viewer fatigue. Typically, most one-hour prime-time network shows carry 10 minutes of national advertising per hour. But total non-program time on networks can be much more than that--anywhere between 14 minutes to 16 minutes--because it also includes local stations' advertising time as well as network TV promos. Andy Donchin, executive VP/director of national broadcast for Carat USA, commended the move, saying it be a good experiment in giving advertisers what they always demanded. "We can see whether less clutter really offers benefits," he said. Media buyers suggested the move should help raise the index between commercial to program ratings--which means that viewers would be watching more commercials. Generally, viewership drops off from program content to commercials by 2% to 6% depending on the network, program and time period. New C3 ratings--instituted last year--would, in theory, rise. Irwin Gotlieb, global chief executive officer of Group M, praised the effort and said ongoing research of the Fox year-long plan would be beneficial in determining how viewers responded. At the same time, program analysts wondered how Fox would continue to pay for such high-priced dramas--especially for those with sci-fi special effects. Typically, those dramas can cost anywhere from $2 million to $3 million and more an episode. Fox also intends to offer up "Dollhouse" with only five minutes of national advertising time when it debuts in mid-season.
CBS will broaden its Internet-owned business with an agreement to buy CNET Networks for $1.8 billion cash. CNET Networks owns entertainment, news and information sites, including CNET, ZDNet, GameSpot.com, TV.com, mp3.com, CNET news.com, UrbanBaby, CHOW, Search.com, BNET, MySimon and TechRepublic. In 2007, CNET reported revenues of $406 million. This acquisition adds to the CBS portfolio of Web businesses: CBS.com, CBSSports.com, CBSCollegeSports.com, MaxPreps.com, CBSNews.com, last.fm, Wallstrip, MobLogic, CBS Radio and CBS Television Stations digital platforms. CBS says the addition of CNET will place it among the top 10 of all Internet companies, with a combined 54 million unique users per month and approximately 200 million users worldwide. A key piece of the deal is CNET's strong business in China, which is highly profitable. CNET Networks will help build CBS' distribution network of the CBS Audience Network, which is made up of more than 300 partner Web sites, reaching 82% of all online users in the United States. As Quincy Smith, president of CBS Interactive, said during the CBS TV upfront programming presentation on Wednesday, the network will continue to offer its TV shows and other video to prospective partners on a nonexclusive syndication basis.
Like CBS the day before, Fox offered up a more traditional programming upfront programming announcement--two dramas, three comedies and one reality show. But like almost all networks, Fox was somewhat affected by the writers' strike. So it will only be launching two shows this fall, the highly touted drama "Fringe" and comedy "Do Not Disturb." "Fringe" from J.J. Abrams, is part science-fiction/procedural-crime drama. It starts when an international flight lands at Boston's Logan Airport and the passengers and crew have all died grisly deaths. "Fringe" will have one of Fox's best lead-ins, "House," which moves to 8 p.m. from 9 p.m. on Tuesdays. On the comedy end, "Do Not Disturb" is a workplace comedy set at one of New York City's hippest hotels: The Inn. The show stars Jerry O'Connell of "Crossing Jordan," and will be paired on Fridays with "Til Death" running at 9:30 p.m. Gone from Fox's comedy ranks was last season's new show, the Kelsey Grammer/Patricia Heaton effort, "Back To You." Although there are only two shows for the fall, Kevin Reilly, president of entertainment for Fox Broadcasting, says: "We are going to be focused on the fall." For one, Fox will put heavy promotion on "Fringe" this summer. Given the writers' strike, Fox decided to take its time with its program development--and will roll out more new shows in the mid-season, when the network typically gets stronger with the season debuts of "American Idol" and "24." "It didn't make sense for us," said Reilly, "rushing shows on the schedules. We got what we needed." Fox trumpeted its supremacy among many viewer groups--the fourth year in a row as the best network among 18-49 viewers, the fifth year in a row as the leader among 18-34, and, for the time, taking the crown from CBS, as the leader among total viewers. Fox also touts that it was the only network to grow its 18-49 ratings this year--up 8%--and that its margin of victory was 40% above other network, the largest percentage ever. As has been done in years past, Fox is doing its premieres early, with "Fringe" launching in late August. This time around, however, it will run right into the week of the Democratic National Convention. But Peter Liguori, chairman of Fox Entertainment, isn't worried. There are only selective moments in the conventions when viewing spikes, which might affect Fox's new shows and new season debuts. One of those nights is Thursday, August 28, which will confirm the Democratic presidential nominee. Fox will not be debuting any shows on that night. For mid-season, Fox will have "Dollhouse" from Joss Whedon, creator of "Buffy the Vampire Slayer," and "Firefly," another sci-fi drama, starring Eliza Dushku, who is a member of a highly illegal group who have had their personalities wiped clean so they can take on new personas. There is also reality show "Secret Millionaire," a dramatic unscripted series that takes wealthy individuals and places them undercover in America's poorer neighborhoods. A "Family Guy" animated spinoff, "The Cleveland Show," focuses on "Family Guy" character Cleveland Brown. who moves to Stoolbend, Va., to make good on a promise to his high-school sweetheart. Another animated series spinoff "Sit Down, Shut Up," from Mitchell Hurwitz of "Arrested Development," centers on eight narcissistic staff members at a high school in a small Northeastern fishing town who put their egos, needs and personal agendas ahead of the kids. Says Reilly: "We are looking for good noisy shows."
In a move expected to bring social networking to TV viewers, Comcast Corp. has agreed to acquire seminal online social networking platform Plaxo for upwards of $175 million, according to various published reports. The news comes the same day that another television industry giant, CBS Corp., announced a deal to acquire online technology information publisher Cnet for $1.8 billion (see related story in today's edition), and signals a continued push by traditional media companies into the online world. Both deals look to accelerate the integration of online and traditional media content and distribution, as CBS and Comcast move to blend their new online communities with their TV viewing bases. For Comcast, that will mean finding ways of leveraging Plaxo, which began life as a rudimentary contacts database, but has evolved into one of the best business and personal connections tools on the Internet, with its TV subscriber base of 24 million households, the largest of any TV operator in the U.S. How Comcast will fuse its new social networking tools with its cable TV subscribers is anyone's guess, but the company already is a significant player online via its cable modem broadband services, as well as its Comcast.com portal. The deal comes a week after Comcast entered a partnership with Sprint, Clearwire and Google to launch a powerful, seamless wireless communications platform, giving Comcast a powerful foothold across three screen platforms: TV, online and mobile.
New Lifetime ad sales head Debbie Richman is bringing along a colleague from her previous time at agency OMD. David DeSocio joins as senior vice president, Lifetime Partnerships. Richman, who took over in April, said DeSocio will look to "leverage" the Lifetime brand--which covers three networks, video on demand and online content--"across multiple platforms." He will also be charged with creating "new types of advertising partnerships." DeSocio was chief strategy officer at OMD, following seven years in integrated sales at AOL Time Warner.
Fox officials attribute "American Idol's" ratings drops this year--including an all-time low May 6--to a range of factors. But that hasn't stopped top executives from saying they are committed to revivifying it next year. Peter Liguori, Fox's entertainment chairman, said Thursday that a creative analysis needs to take place, but "both the network and the producers really want to ... see what we can do to inject it with new levels of energy and new unpredictable twists and turns, and greater levels of storytelling." Liguori's dissatisfaction marks the second season in a row in which executives have found themselves missing the lightning rods that powered the show over its first five seasons. Last year, Rupert Murdoch, the head of Fox parent News Corp., said the show suffered from a lack of charismatic, magnetic "characters" it entertained in the past. (One area Liguori said was not a ratings factor this season was offbeat behavior from judge Paula Abdul, although no change would be made. "We love Paula; she's coming back," he said.) But Liguori said on a call to announce Fox's schedule for next season that "Idol"--as with most reality shows--allows for flexibility to "re-set the table" with format and other executions. "We do constantly want to make the show the most relevant zeitgeisty show on TV," he said. ALthough serialized dramas seem to have suffered the most, due to viewer defections post-writers' strike, Liguori said "Idol" may also be impacted. "I do think the show has somewhat suffered by the post-strike malaise of folks watching broadcast TV," he said. Executives also allowed that shows naturally go through a wax-wane experience; as seasons go forward, viewer interest lessens. In the 18-to-49 demo, "Idol" ratings for the Tuesday edition this season are down nearly a rating point, from a 12.2 in 2007 to an 11.3. (The numbers include DVR viewing.) Wednesday ratings have suffered more dramatically, falling from a 12.4 to a 10.7. Both shows last year averaged more than 30 million total viewers--an inflection point in network TV. This year, however, they are below the threshold. On Tuesday, May 6, the show suffered its worst rating since season one (2002), with an 8.4 in 18-to-49 "live plus same day" numbers. Fox's contract with "Idol" producers gives it the option to continue airing the show through 2011--likely a no-brainer. The network pays a per-episode license fee to producers 19 Entertainment and FremantleMedia, which increases each season. There are also provisions in the contract in which Fox pays bonus fees, based on ratings performances and the number of episodes produced. Fox pays the contracts of the show's host and three judges.
Spanish-language channel V-me--distributed partly via digital multicast in partnership with PBS stations--held its first upfront this week. It made programming announcements covering an original preschool production, several new reality series and continued content from the Food Network. The 14-month-old network offers 30-second spots, but also PBS-style underwriting and sponsorship opportunities. The network is in 6 million Hispanic TV homes (50% of all U.S. Hispanic households) via multicast; nationwide carriage is through Dish and DirecTV. It is counting on the digital transition next year to boost distribution. Multicast carriage comes via 33 PBS stations, including in the New York, Los Angeles and Miami markets. The network released research showing that 80% of its viewers label it as "a strong, high-quality alternative" to Univision and Telemundo. Its audience has a high concentration of bilingual viewers, with two-thirds speaking more Spanish at home and the same amount speaking more English outside. On the programming front, V-me bills its efforts as zigging while others are zagging. The net says it is "filling the programming gap that exists in the Spanish TV landscape by developing content that empowers, entertains and inspires the audience." V-me broadcasts preschool content in the morning, six hours a day, six days a week. The "Hoobs" series from the Jim Henson Company looks to introduce kids to the Internet. The network will soon debut "The Fairies," its first original show in the preschool arena. Also coming for adult demos is "Tu Bebe," a reality series that follows fathers and mothers as they experience pregnancy together and the first year of a child's life. "Tu Bebe" creates an integrated opportunity for sponsors to get involved on-air, online and through outreach," said sales chief Frank Donaldson. V-me said it will continue to partner with the Food Network, where popular network shows are translated into Spanish, and two are produced exclusively for V-me. V-me will also offer reality-competition series in the lifestyle genre, where couples face off to succeed in the restaurant industry. In 2009, another show has couples battle to remake apartments with limited time and money. Music programming is highlighted by "Estudio Billboard," produced with Billboard magazine and offering one-on-one interviews with top Latin artists. The series is entering its second season. In news, the network has a partnership with The New York Times to offer a show that includes a weekly review of news, along with features and lifestyle coverage.
Reflecting the tidal shift occurring in media strategy, a survey by the Interactive Advertising Bureau and PricewaterhouseCoopers shows that Internet advertising revenue passed cable TV, broadcast TV, magazines and radio in 2007. The trend is especially impressive given that cable TV revenue also grew in 2007, according to other surveys. The IAB-PWC report says Internet spending reached $21.2 billion in 2007, a 26% jump from 2006. That compares with $20.9 billion for cable, $19.8 billion for radio, $19.2 billion for broadcast TV, $13.8 billion for consumer magazines and $7.5 billion for outdoor advertising. Newspapers, despite their woes, still netted the most revenue, with $48.6 billion. The IAB report is somewhat at odds with other surveys of 2007 ad spending, however. TNS Media Intelligence, for example, pegged Internet ad spending at just $11.3 billion, versus $26.4 billion for newspapers, consumer magazines at $24.4 billion, broadcast TV at $22.4 billion, cable TV at $17.8 billion and radio at about $10.7 billion. The lower Internet figure is due, at least in part, to the omission by TNS of paid search and broadband video advertising, but it's unclear why there are discrepancies in the other figures. The IAB's estimates for traditional media spending are drawn in large part from forecasts and surveys by Universal McCann's Robert Coen.
Time Inc. Relaunches Health in Print, Online Hoping to cash in on the American obsession with all matters health-related, Time Inc. is relaunching Health magazine's print edition and creating a new online portal, Health.com. Health magazine's redesign, led by Editor in Chief Ellen Kunes, debuted with its March 2008 issue, revealing a new logo, new editorial categories, and an updated, more streamlined general look. The new Health.com, scheduled to go live May 19, will feature a mix of clinical and more lifestyle-focused information, drawing on original reporting as well as articles from respected medical content providers. One of the most important features of the new Web site is the section on thematic health "journeys" that explains some of the most common health conditions--offering a step-by-step process, including diagnosis, treatment and recovery. The journeys cover breast cancer, cardiac health, chronic pain, depression, diabetes, sex and sleep. In the near future, the new site will also introduce recipes and diet advice, as well as message boards and other community features. Time Inc.'s announcement of the Health relaunch comes shortly after two newspaper-distributed magazine publishers announced their own plans to launch new monthly titles targeting baby boomers with health-related content. The Publishing Group of America said earlier this year that it will launch Spry in September; competitor Parade said it will launch HealthyStyle around the same time. Budget Travel Goes All-UGC Magazines have long tried to spur reader engagement by inviting them to submit content for publication, but Budget Travel is charting new territory for big consumer mags with its June issue, which was created almost entirely by readers. The user-generated content includes virtually all the articles and photos in the magazine, from 324 contributors--selected from among 2,800 reader pitches. Manhattan Media Buys 02138 Manhattan Media--the publisher of the New York Press, among other newspapers--has purchased 02138, a magazine targeting Harvard alumni. (The title is the Cambridge Zip code.). Manhattan Media wants to create a social network around the title and use this as a model for similar publications and social networks at other Ivy League schools. 02138's publisher, Bom Kim, will stay on with the company. The new owners plan to increase frequency from four to six times a year. Nina Garcia Jumps to Marie Claire Nina Garcia, currently the fashion director for Elle magazine, is leaving that publication to join Marie Claire, where she will work with the editor in chief. Garcia, who has become well-known as a judge on Bravo's "Project Runway," is supposed to take up her new position in September. It's unclear what impact, if any, her move will have on the official relationship between Elle and Project Runway; Marie Claire is said to be interested in replacing Elle as an official fashion partner to the show. Fortune Cuts 15 PositionsFortune magazine announced its intention to cut 15 positions this week, roughly half of them with buyouts, according to Women's Wear Daily. Staffers will have until May 27th to decide whether they want to accept the buyouts. The staff reductions, announced by editor in chief Andy Serwer, mark another round of cuts at Time Inc.'s troubled business titles. Vivek Shah, appointed president of the Fortune|Money Network in July 2007, closed Business 2.0 not long after taking up his new post. But the other titles are still having a rough time: In the first quarter, Fortune was flat with a 0.9% decline in ad pages, while Money fell 5.5%. Fortune Small Business is down 18.6%. Rizzuto Moves to InStyle Katherine Rizzuto has left Conde Nast's Brides magazine to join Time Inc.'s InStyle, where she will serve as vice president and associate publisher of advertising. Rizzuto will take up her now post on May 27.
With names like that, who needs frienemies? WPP Group, and client Dell Computer, have finally cracked the DaVinci code, and it means "Synarchy," the name of their new advertising agency of the future. We have to admit, we'd never heard the word before, but we like the sound of it, and couldn't resist the opportunity to riff aloud about it. According to a report in Advertising Age, the word is a reference to "a utopian political system coined in the 18th century." Sounds ideal. In fact, it moves the shop that much closer to the future - about three hundred years or so - from the 15th century reference given to the project's original code name. On the other hand, maybe DaVinci really was from the future. And far be it for us to second guess the new WPP unit's brand name, but we know the industry and the trade press are going to have a field day with it. (Actually, we already are.) According to the latest edition of Webster's Revised Unabridged Dictionary, the word is technically pronounced: sin-ar-kee. But we can already hear some people calling it snarky. According to the Ad Age report, there's still a chance WPP may not jump the snark, and has already registered two alternatives with the trademark office: "Sector 64" (the Area 54 of 64-bit microprocessor history), and the all too telling, "Refute." We're not going to refute Ad Age's reporting, but we've obtained an internal WPP memo containing the entire short list of alternatives to Synarchy Worldwide. They include: * Syllie Global (pronounced: silly all over the planet). * Czarchastic Intergalactic (pronounced: sarcastic - but only to extraterrestrials). * J. Walter Thompson (pronounced: scuttled corporate legacy). * Ogilvy & Mather (pronounced: rolling in the grave). * Young & Rubicam (pronounced: And what are we, chopped liver?). * Wire & Plastic Products (pronounced: What's in an acronym? Would a holding company by any other acronym spell as sweet - on Wall Street, if not Madison Avenue?).