Buyers Mull Asking Networks for Cash Back

Media buyers are saying they are about a month away from asking broadcast networks to either renegotiate their upfront deals or give them cash back, if the strike continues.

The networks are still saying they have enough fresh episodes of scripted shows, along with reality programming, to get them through February sweeps, but media buyers don’t think that will be enough to retain viewers, writes Mediaweek.

Viewers are likely to turn to cable which, because of its different cycles, will be able to offer some first run programming, along with complete cycles of scripted series that regular broadcast network viewers have not yet seen.
Steve Sternberg, executive vp of audience analysis at Magna Global USA, has said that the broadcast networks are likely to lose another 5 percent of prime time ratings by the end of January and 8 percent if the strike continues through the end of February sweeps and into March.

If that happens, the networks will likely have no way to meet their upfront guarantees, in which case advertisers are likely to ask for cash back.

One nameless buyer predicted calamity, saying, “If a large majority of the original reality shows the networks plan to put on during the strike don’t hit a chord with viewers, the entire ratings and makegoods situation could spiral out of control.”

Andy Jung, senior director, advertising and media for Kellogg’s Co., and chairman of the American Advertising Federation, is quoted as saying, “If the eyeballs move, we will move our money.”