• by Wayne Friedman , August 4, 2010

Turner Broadcasting's TBS is getting some deals close to -- or at -- broadcast network CPM prices for the new late-night Conan O'Brien show. O'Brien's cable show bows in November. 

Jeff Bewkes, chairman and CEO of Time Warner, told investors during a 2Q earnings call that the show is on "parity" pricing-wise with late-night broadcast network shows. But he didn't disclose what those prices were.

Media-buying executives estimate that O'Brien's late-night show could be getting in the $18 to $20 range for a thousand 18-49 viewers (CPMs), which would be in the ballpark, says Gary Carr, senior vice president and executive director of national broadcast for media agency TargetCast.

That said, every late-night advertiser has a different CPM base. So media buyers say the CPM range would be a rough estimate.

Bewkes did not offer specifics, but the belief is that TBS is probably looking at rating guarantees of around 1.0 among 18-49 viewers. That is about what O'Brien had as host of the NBC "Tonight Show," and currently what "The Tonight Show with Jay Leno" is getting.

But for a TV advertiser to strike a deal with TBS -- and pay what it pays for a late-night broadcast network show -- means that an advertiser is probably only buying the O'Brien show and no other TBS program, according to media agency executives.

Typically, cable networks push advertisers -- more than broadcast networks -- to buy a slew of other programs on their schedule -- including prime-time and perhaps daytime shows, sometimes called "run of schedule" or ROS.

Cable networks like to use their prized big-rated programs to drive ad revenues across their channel. Factoring in a number of different shows could significantly lower the cost in looking at the O'Brien show alone.

Turner and other networks -- cable and broadcast -- benefited from a strong upfront market, since many advertisers were turned away from networks such as ABC and NBC because pricing for late-night shows was already very high.

As a result, "a lot of money could have moved to Conan," says Carr.