The CW Change-Up: Media Buyers Lose

Media planners seeking to buy in the 18-34 and minority demographics can plan to see inventory plummet and the market become controlled by one player, as UPN and the WB networks merge to form a new network called the CW. The depth of the fallout cannot yet be fully understood, but it is clear that the merger is just the sort of consolidation buyers dread, Media Life writes. “I’ve never seen a consolidation, no matter how it’s been dressed, look like a real good thing to our clients,” said Publicis Groupe Media CEO Jack Klues.

The merger will reduce primetime options for buyers of media, cutting the number of programming between the two networks from 23 to 13 hours. The WB has traditionally sold out early and at high prices because of its reach with younger viewers. With less programming to that demo, prices will rise not just at CW but at Fox, which targets almost all of its 15 hours of programming to viewers 18-34. Even the other networks, at least for their programs targeting that particular demo, may see prices increase.

Another loss for media buyers will come in the form of fewer shows aimed at African Americans, as UPN’s six black shows are not all likely to make the cut.

Media buyers aren’t the only ones left struggling. Former WB and UPN stations that aren’t picked up by the new CW as affiliates will be left scrambling for programming when the networks officially merge in the fall, Mediapost writes. The two networks must dissolve before starting the new one, and respective station affiliation agreements will be terminated at that time. Stations with multi-year agreements extending beyond September will be left holding the bag, and may take legal action.

This could hurt companies from News Corp (which in addition to owning Fox also owns some local UPN stations) to independent station owners such as Sinclair Broadcasting, CNNMoney reports.

In the meantime, about 100 UPN and WB stations are in murky waters, wondering whether to buy syndicated programming for the fall or whether they will become CW affiliates.

As for who may come out on top, CNNMoney predicts that it might not be CW or any of the other major TV networks, but rather cable television, which might wind up gaining more viewers because of the limited options for viewers. Some UPN or WB shows that get dropped by the CW may get picked up by cable if the price is right.