• by Wayne Friedman , June 6, 2006

With the DVR viewing yoke off the necks of TV buyers and sellers, the TV prime-time upfront ad market was unleashed to start making deals yesterday and into the evening.

But the market wasn't in any kind of dog race, say media executives, as negotiations moved at a moderate pace with a small number of deals being done, at low-single-digit price increase deals, about the same as a year ago.

CBS actually started inking some deals last week, "with advertisers where it could get good pricing," said one media executive. The network continued talking up upfront deals on Monday, with deals done at 2 percent to 3 percent price increases on the cost-per-thousand viewers (CPMs) versus pricing of a year ago.

CBS isn't at the top end of the market in terms of price hikes. For the second year in a row, this will belong to ABC; the network also began moving some deals on Monday. Media agency executives said those early deals were moved at around 5 percent--the same increases the network got versus a year ago.

Fox, which also started the upfront process yesterday, say media buying executives, figures to be getting the same price hikes as CBS, in the 2 percent to 3 percent range.

Pulling up the rear, NBC will have another tough year--possibly drifting backwards, 3 percent to 4 percent on CPMs. That's because NBC still has the highest price among all networks for CPMs among adults 18-49--all this in the face of double-digit ratings declines this season.

But at any CPM reductions, NBC will try not to sell much inventory, in the hopes of making up some of those losses during the 2006-2007 broadcast season scatter market. Randy Falco, president/COO of NBC Universal Television Group, has said NBC would sell less prime-time inventory than usual--perhaps only 70 percent.

ABC, CBS, Fox, and NBC spokespersons declined to comment for this story.

Some networks' buyers and sellers worked well into the evening on Monday. Media executives said the deals will be inked, but with fewer night sessions, made famous in hot markets of upfronts past.

"I'm not sensing it's too hot of a marketplace," said one West Coast media executive, who buys for a major movie company but hasn't done any deals as yet. Movie companies typically move first in the upfront market, paying a premium over other advertisers--this for the flexibility to shift around their commercials where needed. "We are ready to go," said the executive. "All of our plans are done."

Earlier in the day, ABC went public with its revised position regarding DVR-added viewing.

For months, the network stood firm that advertisers should pay for this extra viewing up to seven days after a TV show's initial broadcast. But media buyers were equally resolute that they only wanted to pay for "live" viewing. This pushed ABC to change its mind and offer up "live"-only rating guarantees as an option for advertisers.

"While the majority of the advertising community has reached a consensus on the Nielsen DVR ratings issue, and has concluded that commercials seen during DVR-recorded programming have no value, the ABC Television Network continues to believe strongly in the worth of the "Live Plus" viewer, and will continue its efforts to include this audience," said the ABC statement.

Talk was rampant that ABC caved--not from pressure from media buyers--but more from other network sellers such as CBS, Fox, and NBC who have been ready to cut live-only deals. With these market conditions, ABC couldn't hold the line.

Next year, media buyers and sellers predict that "minute-by-minute" ratings--otherwise known as commercial ratings--will be the new focal point of debate and conversation. Media buying executives say late into the upfront process this year, ABC threw out the possibility of offering up rating guarantees on commercial ratings--as a more amenable gesture to media buyers.