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NBC lowers fall ad rates
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June 21, 2001: 11:18 a.m. ET
Move has propelled early advertising sales for the upcoming TV season
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NEW YORK (CNNfn) - With advertising sales muted by the weak economy, NBC has kick-started its upcoming fall television season by lowering its ad rates – propelling the network ahead of its competitors in the crucial "upfront" marketing season.
During the upfront season, networks usually try to sell 75-to-80 percent of their advertising inventory. This year, however, has not been as successful, as worried advertisers have battled networks over ad rate increases.
But NBC's lower ad rates do not mean their rates have dropped below those of its competitors.
According to a report in the Wall Street Journal, NBC's rates were set higher to begin with because last year it won the top demographic group of adults aged 18-to-49. So even with reduced ad rates, NBC will still bring in more upfront advertising dollars than any of the other networks, the WSJ said.
The move by NBC, which is owned by General Electric (GE: up $0.54 to $51.31, Research, Estimates), has yet to be met by the other networks.
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"We're looking forward to a strong up front," said a CBS spokesman. "No, [we're] not lowering our ad rates."
Officials from News Corp., owner of the Fox network, declined to comment, and ABC officials were unavailable for comment. 
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