The syndication industry grabbed healthy advertising gains this upfront, taking in $200 million more in overall revenue--about an 8% gain over the year before.
All this follows on the heels of a surprisingly strong broadcast network and cable network upfront, one that witnessed quick sales and high 8% and 9% cost-per-thousand viewer increases for top TV programs. Estimates are that broadcast network's prime-time programming pulled in about $9.2 billion, and cable networks grabbed $7.5 billion this upfront season.
With 75% to 80% of all upfront business completed, syndication is set to take in around $2.6 billion. Warner Bros., CBS Television Distribution, and NBC Universal Television Distribution have completed the majority of their respective upfront selling activities, according to several media buying and selling executives. First-tier syndication shows, "Oprah Winfrey," "Dr. Phil," "Entertainment Tonight," and others grabbed high-single-digit cost-per-thousand price increases (CPMs), and a few double-digit price hikes.
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New shows, such as Warner Bros. talk show "Bonnie Hunt" and Disney ABC Domestic Distribution's weekly drama "Wizard's First Rule" also scored healthy upfront deals, according to media executives. Warner Bros. had no comment; Disney executives did not return phone calls by press time.
Syndication benefited that its programs' ratings erosion was somewhat less than broadcasting ratings this past season--with mid-single-digit rating declines versus the double-digit rating declines on the broadcast network.
Much of this comes from syndication playing heavily in the daytime marketplace, not prime time. Many scripted networks shows were hurt this past year because of the writers' strike. But many syndication shows--especially those heavyweight daytime shows--went relatively unscathed. Still, shows like "Oprah Winfrey" witnessed lower ratings versus a year ago.
In observing the marketplace, syndicated sellers noted that consumer product marketers continue to look to daytime programs as a big piece of their TV-buying plans--thus the strong upfront results.
Pharmaceuticals and movie companies are among the categories that increased spending in syndication this year.
In addition, "automotives weren't as bad as people were estimating they would be," according to one veteran syndication advertising seller.
Like cable and network, syndication is in its second year of pinning advertising deals to C3 guarantees--commercial ratings plus three days of DVR playback. Syndication shows generally do a better job than cable and broadcast networks in retaining viewers when transitioning from program to commercials.
Another benefit for advertisers is that since many syndication programs run every day, viewers tend to not to record shows for later viewing.