Slow Network Upfront Affects Syndication, Cable

The broadcast industry has recently seen a downturn in the upfront market due to budget cuts, a glut of inventory and deliberating by advertising conglomerates, according to Media Life. Media buyers report that the upfront for syndication has barely begun, with budgets just now being registered. The market is proving to be less successful than previously thought. In May, Merrill Lynch analyst Jessica Reif Cohen projected a 4 percent increase, to $3 billion, and Miller Tabak, an investor with a New York-based investment firm predicted a 4.5 percent increase, to slightly over $2.9 billion. Merrill Lynch was forced to revise projections last week, predicting a flat to minus 1 percent increase. The rise in digital media has also fueled the reduction in upfront pricing, writes AdAge. Increased digital options give media buyers bargaining power.