• by David Goetzl  @dgoetzl, December 3, 2010

Another breakthrough in the IES is a yes at ABC. The fledging Inventory Exchange System will move into a "reverse exchange" phase. As ABC told affiliates Friday, it will buy 16 spots from IES to run in January.

Stations received an offer price late last month for some of the local inventory they own. Enough accepted this week to give ABC a sufficient footprint to air the newly acquired spots and make it work financially.

Among the inventory ABC is buying are an extra spot in "The Bachelor" and four in "Good Morning America." ABC pays stations different amounts to buy the spots, based on factors such as market size and local ratings.

"Both of us have the chore of dealing with a limited amount of inventory, and we're helping each other," said Bill Hoffman, general manager of the Atlanta affiliate and chair of the ABC affiliate board. "It's really great problem-solving going on."

The "reverse exchange" follows two bursts last fall, when the breakthrough Inventory Exchange System (IES) launched with another dimension. ABC sold packages to stations, which included spots in several top prime-time shows and on "World News Tonight," where affiliates typically have no space.

The January exchange benefits stations since it is often a difficult month for their sales flow. ABC, however, has fewer ebbs and flows and might need the inventory for makegoods.

Dave Boylan, general manager of the Miami ABC affiliate, has been a point person on developing the IES with Bill Fine, who heads the Boston station. Boylan, vice chair of the affiliate board, said the IES is a welcome harmony amid some cacophony.

Affiliates have been frustrated by networks trying to capture some of their retrans consent dollars and moving ahead with streaming shows on sites such as Hulu. And, in ABC's case, moving top-tier sports programming to ESPN.

"This Inventory Exchange System does not offset the changes the network has put into place in the affiliate/network business model over the years," Boylan said. "However, we are very encouraged that we are working together to explore some new revenue opportunities."

Affiliates feel one of the generators behind the IES is Anne Sweeney. The Disney executive, who has overseen the ABC network, also took control of the network's owned-and-operated stations in the spring.

If the IES could help the O&Os and network make more money at various times, what was the downside? Logistically, with Sweeney leading both, an IES launch was made easier. It was also a way to reaffirm a commitment to the traditional network-affiliate relationship.

"Any organization that took down that wall and brought a similar business into the fold and has the ability to have a more holistic approach, that's just a better way of looking at it," Hoffman said.

On a Nov. 19 Webcast with affiliates, Boylan and Fine suggested the affiliate board would solicit ideas and begin discussions on what's next at the regular January affiliate gathering.

Ray Cole, who oversees Citadel Broadcasting's ABC affiliates, said the company "will be encouraging the affiliate board and network to keep pushing the envelope."

Well, a recession can be the mother of invention.