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| Media economy | |
outlook for the upfront Ad buyers are facing higher prices in the scatter market Mar 24, 2009 With the ad economy suffering and the U.S. economy on the ropes, one might expect the worst for the upfront market for the broadcast and cable television networks, with advertisers holding back spending on the coming year's shows. But actually, while it's still early to be making solid predictions, prospects for this year's upfront are decent and improving as the weeks go by. One positive sign is that prices in the scatter market have been inching up. The worry, of course, is that between now and late May a lot could change, and the upfront outlook could change with it. In years past, it seemed assured that each upfront would bring a shift in ad dollars from broadcast to cable as the cable networks increased their share of viewership at broadcast’s expense, but that's become less certain as cable has matured and the growth slowed. Meanwhile, the pace of this year’s upfront is moving along much as it has in the past, says Harry Keeshan, executive vice president of national broadcast at buying shop PHD. “I don’t see the pace slowing down,” he says. “We’re flat out on the same schedule, just about, as we were last year. We are analyzing our positions. It hasn’t slowed at all and I don’t anticipate a change in the pace.” While formal negotiations won't take place until May, after the broadcasters hold their presentations, buyers have begun having internal upfront discussions, and some initial talks have taken place with networks.
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