Fox Networks Upfront Holds Steady

Fox Networks has concluded its upfront negotiations -- for all its broadcast and cable channels -- at the same dollar volume as a year ago, according to media executives.

Fox Networks includes Fox Broadcasting Co., Fox Sports, and cable networks FX, FXX, National Geographic Channel, Nat Geo Wild and Nat Geo Mundo, and others.

This comes a day after CBS announced it has completed its TV upfront advertising deals.

Two weeks ago, media executives say the Fox broadcast network started up its upfront deal-making before other broadcast networks -- inking a weak flat to 2% cuts in the cost per thousand viewer (CPM) prices for its programming.

For many years, Fox had been commanding top pricing of all broadcasting networks in the CPMs for key 18-49 viewers.
Media-planning software provider SQAD says broadcast network TV CPMs against key advertising 18-49 viewers averaged $43.06 in 2014.

This past season, Fox, was hit with major viewership declines across many demographics -- around 20% -- versus a year ago. Fox also lost major ground in 2013-2014 from the previous season.

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This year, estimates are that broadcast networks -- not including Fox -- have been getting 2% to 5% CPM price increases versus a year ago. Price estimates for the 2014 upfront market -- for all broadcast networks -- ranged between 3% to 7% CPM hikes.

Concerning all upfront negotiations this year, a Fox spokesperson had no comment.

Last year, the Fox broadcast network was estimated to take in around $1.6 billion which was a 10% decline from the 2013 upfront advertising market.

Industry estimates are that total broadcast upfront dollar volume is projected to drop anywhere from 5% to 10% from the $8.7 billion to $9.0 billion level of a year ago. Cable networks have been estimated to be subject to lesser declines from the industry’s $9.8 billion take a year ago.

Executives say Fox Networks also made gains in selling more deals linked to the C7 metric -- the average commercial ratings plus seven days of time-shifting. In addition, according to executives, Fox Networks made improvements with regard to selling all digital programming platforms -- video-on-demand, online video and mobile.

Fox reorganized its advertising sales division in October 2014, consolidating all broadcast, cable, digital sales groups for all entertainment, sports and their nonlinear extensions into one group. Fox News Channel remains separate.

1 comment about "Fox Networks Upfront Holds Steady".
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  1. Ed Papazian from Media Dynamics Inc, July 1, 2015 at 11:57 a.m.

    While this is just a tentative assessment, as all of the broadcast primetime buys have not been completed, it looks to us as if the average CPM for adults 18-49 and adults 25-54, will increase by about 4.1%, however total spending will probably decrease, due to lower ratings and somewhat more GRPS being witheld for the scatter market. As a rough estimate---subject, like our CPMs, to change--- we see total upfront dollars for the five broadcast networks settling in at about $8.0 billion---a decline of  5.3%.

    The main point is that the much awaited "tipping point" that we and others have speculated about, which would witness the beginning of a sustained downward spiral in broadcast network CPMs following last year's setback, has not materialized. As in other upfronts where there was an abrupt drop in CPMs, the following year---in this case, this year---- has seen something of a come back, albeit a modest one.

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