April 25, 2024

Advertising: Now the TV Heavyweights Have Their Week to Unveil Shows

So it seems on Madison Avenue as advertisers and agencies prepare for the annual television upfront week, to take place in New York next week from Monday through Thursday. The largest broadcast networks and cable channels — English-language and Spanish-language, from ABC to Univision — will show their programming for the 2013-14 season in 18 or so slick, expensive presentations in places like the New Amsterdam Theater, Carnegie Hall and Radio City Music Hall.

The upfront week arrives after 12 weeks of presentations by other cable channels and digital media companies, so plentiful at times that agencies and advertisers could attend three in a single day.

The Great Upfront Frenzy of 2013 — possibly the best thing to happen to the cater-waiter industry since the invention of the reversible cummerbund — began in early February and did not end until Thursday morning, when executives at the Ovation cable channel told reporters about their channel’s coming season.

“We knew this was the last week before the upfront week,” said Liz Janneman, executive vice president for advertising sales at Ovation. “We wanted to try to get some attention, and make some noise, by not being in the middle of all that.”

Ovation is adopting a new logo along with a new brand identity, “Art everywhere,” which replaces “Be moved.” The executives also described their intent to increase the amount of original programming on Ovation to 236 hours this year from 46 in 2012.

“We are doubling, tripling, quadrupling down on” additional content for viewers, said Robert Weiss, chief creative officer at Ovation, who discussed 25 new series that are being added to the lineup for 2013-14 or are on a path of “fast-track development.”

That has been perhaps the most notable trend of the preupfront upfront weeks: cable channels bolstering original offerings.

Among others saying that is the strategy are AE, ABC Family, AMC, BBC America, Bravo, FX, the Hallmark Channel, History, Lifetime, Oxygen, TBS, TNT and USA.

In addition to ABC and Univision, those scheduled to make upfront week appearances include Adult Swim, CBS, CW, Discovery U.S. Hispanic, ESPN, ESPN Deportes, Fox, Fox Hispanic Media, NBC, NuvoTV, TBS, Telemundo, TNT, Tr3s and USA.

Some are not waiting until next week to make like TV Guide and provide programming information. Fox, part of News Corporation, announced on Wednesday that it would add nine series — four dramas and five comedies — to its schedule, including shows like “Almost Human,” with Michael Ealy and Karl Urban; “Rake,” with Greg Kinnear; and “Us Them,” with Alexis Bledel and Jason Ritter.

NBC, part of the NBCUniversal division of Comcast, followed on Thursday with word of five new shows — three sitcoms and two dramas — among them “Sean Saves the World,” with Sean Hayes, and “Crisis,” with Gillian Anderson.

After the upfront week ends, networks and channels begin negotiating with advertisers and agencies over the sale of commercial time ahead of the fall. (That explains the term “upfront,” in that the dickering occurs before the new season.) Last year, in the upfront market before the start of the 2012-13 season, marketers agreed to buy an estimated $20 billion worth of commercial time.

There has been speculation that if the television industry seeks to raise ad rates for 2013-14 considerably higher than they have been for 2012-13, Madison Avenue may balk, citing recent erosion in viewership and ratings as well as a current schedule bereft of hit new series.

In a report, Brian Wieser, an analyst at the Pivotal Research Group, said he believed that any percentage increases won by the leading broadcast networks would end up in a range of 5 to 7 percent, with percentage gains for the leading cable channels “in or slightly below this range.”

Another challenge for channels and networks is a concerted effort by online video publishers to encourage agencies and advertisers to buy commercial time on Web sites to supplement or complement the TV spots they buy. There were 17 presentations with that goal during an event last week in New York called the Digital Content NewFronts, with participants that included AOL, Google, Hulu and Yahoo.

Senior executives of leading Madison Avenue media agencies like Carat, Digitas, OMD and Universal McCann, sent an open letter on Wednesday described as a “call to arms” to the publishers that presented at the NewFronts. The executives said they were eager to “put equitable skin in the game” but sought assurances that the publishers would agree to major commitments like giving online video programs “the promotion they need and deserve” and providing effective ways to measure results.

Randall Rothenberg, president and chief executive of the Interactive Advertising Bureau, which sponsored the NewFronts, replied on Thursday. He pledged in a letter of his own “to collaborate with you” and asked in turn that the media agencies agree to steps like helping to develop “seamless” viewing across all screens and to “limit the use of advertising to support the piracy of intellectual property.”

Mr. Rothenberg also invited the media agencies to meet with his association to talk about joining forces to start a “Digital Video Center of Excellence,” which would encourage demand for original online video programming. “We’ll gladly buy the pizza and beer,” he wrote.

On that note, for those who may be sad at the prospect of Upfront Nation disbanding after Thursday, TBS, part of the Turner Broadcasting System unit of Time Warner, sent invitations to an event next Friday billed as an “upfront hangover brunch.”

Article source: http://www.nytimes.com/2013/05/10/business/media/now-the-tv-heavyweights-have-their-week-to-unveil-shows.html?partner=rss&emc=rss

Media Decoder Blog: BuzzFeed Adds Politico Writer

Ben Smith of Politico will lead BuzzFeed's effort to report news.Fred R. Conrad/The New York TimesBen Smith of Politico will lead BuzzFeed’s effort to report news.

BuzzFeed, a site where the editors and algorithms sift the Web in search of viral articles elsewhere, has decided that it needs articles of its own.

In a move that is sure to surprise the political and journalistic classes, the site is hiring Ben Smith, one of the foremost writers at Politico, to build a new breed of social news organization.

As editor in chief, Mr. Smith will hire more than a dozen reporters right away, said Jonah Peretti, who founded BuzzFeed with Kenneth Lerer, “and then we will keep growing from there.” The reporters will be scoop generators, Mr. Peretti said. “By breaking scoops and drawing attention,” he added, they will help increase traffic and, by extension, advertising sales.

It is a tenet of BuzzFeed that the Web pages users like to click are different from the pages they like to share with others. BuzzFeed encourages the second case, the sharing of links, articles and photos on Facebook, Twitter and other social sites. The reporting by Mr. Smith and his staff will be produced with that sharing strategy in mind.

“I already write for the social Web and consume most of my news on the social Web,” said Mr. Smith, who calls Twitter his main source of news.

Mr. Smith, a popular political reporter, was one of the first people to join Politico after it was conceived five years ago. He was “present at the creation and was instrumental in establishing our voice and journalistic sensibility,” said John Harris, the editor in chief of Politico.

Mr. Harris said he had imagined that someday Mr. Smith would want to act on his “obvious entrepreneurial streak.” Mr. Smith’s byline on political news will remain exclusive to Politico through the presidential primaries next year, and he will remain a weekly columnist for the Web site. “Keeping his voice and ideas on politics was a very big deal to us,” Mr. Harris said.

“I had no plans to leave Politico at all,” said Mr. Smith, whose Politico blog was expanded last month. “I was totally bit by the bug of how exciting this was.” He has not decided whether to change his Twitter handle, which is @Benpolitico.

Article source: http://feeds.nytimes.com/click.phdo?i=9b5b855295c786894bcc0128f145eb02

Disney Profit Declines 1%, Partly on Movies and Parks

Disney, reporting financial results for its fiscal second quarter, had setbacks in three important areas — movies, theme parks and interactive media.

At Walt Disney Studios, operating income dropped 65 percent, to $77 million, because of the flop “Mars Needs Moms,” which cost about $200 million to make and market but took in only $36.7 million at the global box office. In the year-ago quarter, Disney recorded strong DVD sales of Pixar films like “Up,” “Toy Story” and “Toy Story 2.” The quarter that just ended had no Pixar DVD releases of comparable size.

Operating income at the company’s theme parks, closely watched as a barometer of consumer confidence, declined 3 percent, to $145 million, because of lower royalty payments from Tokyo Disney Resort, which closed for more than a month after the March 11 earthquake.

The parks’ performance for the period was also hurt by a calendar quirk that moved Easter out of the quarter and higher costs for fuel and other items at Disney Cruise Line.

Losses at Disney’s interactive media unit grew to $115 million, from $55 million a year earlier, because of accounting related to the acquisition last year of Playdom, a maker of simple online games. The company has been struggling to turn around the division for years, most recently with broad management changes. Yet another overhaul of Disney.com is expected within months.

Disney shares closed Tuesday at $43.91, up 1.9 percent, then slipped about 3 percent to $42.66 in after-hours trading.

For the three months ended April 2, Disney, which is based in Burbank, Calif., had net income of $942 million, or 49 cents a share, down from $953 million, or 48 cents a share, a year earlier. Revenue rose 6 percent, to more than $9.07 billion, largely because of surging advertising sales and affiliate payments at ESPN and cable channels like ABC Family.

Income for Disney’s television operation rose 17 percent, to $1.5 billion, offset by increased rights costs at ESPN, including for college bowl games. Robert A. Iger, Disney’s president and chief executive, speaking on a conference call with analysts Tuesday, sought to calm concerns about increasing programming costs at ESPN but also said that it would not be shy about pursuing expensive new content deals.

“ESPN certainly plans to look at the Olympics seriously,” Mr. Iger said.

Disney’s consumer products division was another bright spot in the quarter. Its operating income increased 7 percent, to $142 million, because of improvements at Disney retail stores.

Mr. Iger was upbeat about the future. He noted that the television advertising market was booming and that even ABC, where ratings had eroded, was expected to fare well in the coming upfront advertising period, when commitments for ad spending are made. At the theme parks, an end to price discounts put in place at the height of the recession could increase per-capita spending in the high-volume summer.

And Walt Disney Studios has several movies on deck that are expected to be blockbusters, including “Pirates of the Caribbean: On Stranger Tides” and “Cars 2,” both of which have enormous amounts of related retail merchandise.

Article source: http://feeds.nytimes.com/click.phdo?i=dd277ea60a336a77b493650a1701d3b6