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Starcom/Turner Entertainment Sign $150 Million Upfront Deal

Turner Entertainment completed its upfront business late last week with Starcom to the tune of about $150 million, making that the second big upfront deal for cable - MTV Networks signed a deal for reportedly about $300 million with OMD - while upfront activity with the broadcast nets remains sluggish, according to Mediaweek.

Yes, Fox did some business with movie studies at CPM lifts as high as 4 percent, but the article points out that studios traditionally pay higher rates than other advertisers in exchange for selective positioning. CW cut some deals at pricing similar to those cut by the WB last upfront, and NBC did business at significant CPM cuts. Overall, the broadcast upfront - which has also been defined by plenty of misinformation and rumors - has not picked up much steam.

Cable hasn’t seen much activity either, beyond the Turner/Starcom and MTV Networks/OMD deals, which represent less than 7 percent of cable’s expected upfront take. But the early signing of the MTV deal may indicate that MTV Networks may be the big winner this year. According to Merrill Lynch analyst Jessica Reif Cohen, “Signing a relatively early deal is a positive indication that Viacom’s digital platform could help the company outperform its competitors and the general marketplace.” MTVN’s digital offerings made up about 10 percent of the deal.

The sluggish nature of the upfront is also affecting digital ad sales. Alan Schanzer, managing partner of Mediaedge:cia’s MEC Interaction, said that TV buyers are bringing the agency in to evaluate digital inventory, but that most digital deals will not be done until broadcast deals are finalized.