• Adweek, Thursday, April 3, 2008 11:15 AM

New Line, a Time Warner-owned movie studio, will pull its $250 million media buying count from Aegis Group's Carat and give the business to WPP Group's MediaCom, insiders say. The shift is set to happen after New Line rolls out its "Sex and the City" film next month and comes a month after Time Warner announced it would fold New Line into its larger Warner Bros. Studios film unit, already a MediaCom client.

According to Nielsen Monitor-Plus, Warner Bros. spent more than $600 million on ads last year; combined with New Line, the account would be better than $850 million. Still, the New Line portion of that budget is expected to drop as it will produce fewer films -- perhaps only half as many -- as part of Warner Bros. Time Warner says the consolidation will reduce costs and eventually double New Line's profit.

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