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TV's 'desperate' bid for billions
Advertisers will soon get a glimpse of next fall's TV lineup. ABC is back, but can NBC recover?
April 14, 2005: 4:49 PM EDT
By Krysten Crawford, CNN/Money staff writer
This 'desperate' divorcee has a way with men. ABC likes her, too.
This 'desperate' divorcee has a way with men. ABC likes her, too.
Networks are still searching for a sitcom smash like 'Friends' to give ratings a needed boost.
Networks are still searching for a sitcom smash like 'Friends' to give ratings a needed boost.
Photo GallerylaunchSee more photos

NEW YORK (CNN/Money) - They aren't the desperate ladies of Wisteria Lane, but the executives in charge of the top four broadcast networks are gearing up for a cat fight all their own.

Next month marks the start of the "upfront," the television industry's yearly drama, in which network executives strut their fall TV lineups and sell the bulk of their advertising for the coming season.

This year, the saga -- characterized by days of closed-door dickering over ad rates and ruthless jockeying for ad buys -- comes at a tense time for network television.

Ad-skipping digital video recorders, eroding network audiences, and mergers of big commercial sponsors like Procter & Gamble and Gillette all have network executives fretting over the future. But despite long-term threats, near-term jitters may be overblown.

Last year's upfront brought in an estimated $9.4 billion to $9.6 billion in revenue, up 2 or 3 percent from a year earlier, but far short of the 10 percent jump in ad sales overall in the United States.

This year, research group TNS Media Intelligence expects growth in total ad spending -- including TV and radio, Internet and print -- to slow to 5.1 percent, to about $150.5 billion. And the networks, despite their troubles, are expected to benefit from the general health of the broader ad market.

"The consensus seems to be that the upfront will once again be a record," said Bill Carroll, the director of programming for Katz Television Group. "The broadcast networks, by any reasonable measure, are still the most efficient means of reaching the largest possible audience."

Others aren't so sanguine.

"Television networks don't deliver the audiences that they did a year ago or five years ago and yet (ad) prices continue to go up," said Brad Adgate, the senior vice-president of corporate research at New York marketing firm Horizon Media.

"Advertisers have a lot of choices now," he noted. "At some point, the bubble may burst."

A sneak peek

Networks are scrambling to complete their lineups before the upfront kicks off May 16. Some 80 percent of ad slots for next season are sold up front, with the rest held over for sale closer to when programs air.

According to Horizon Media, about 140 television shows are in development. About 35 will make it onto the schedule. Three-fourths of those won't survive the first season.

"Throw it up against a wall and maybe it will stick," is how Adgate describes the network mindset during the process.

Duplication is the name of the game.

Don't expect a "Desperate Househusbands" to appear on ABC's schedule. Still, at least two networks are eyeing shows about suburban soccer Moms (whose levels of desperation may vary).

Narrators are also in vogue, as are single-camera comedies, a la "Arrested Development."

Four shows delve into supernatural -- copycats, no doubt, of the phantasmal theme in ABC's hit drama "Lost."

Despite signs that the reality genre has passed its peak, networks are still looking for the next "Survivor." Fox is considering "Who Wants to Live Forever?," in which doctors estimate, to the day, when a contestant will die and offer advice on how he can live longer.

Then there's "The Apprentice: Martha Stewart" in the works on NBC. So far it's the only announced spin-off.

CBS, ABC up high.....NBC, Fox down low

NBC is facing one of its toughest upfronts in years. The longtime ratings leader, which led the upfront last year with $3 billion in sales, couldn't fill the void left when "Friends" and "Frasier" ended their runs a year ago.

NBC now ranks No. 4 among 18- to 49-year-olds, the most coveted advertiser demographic.

One competitor estimates that as much as $300 million worth of NBC advertising is up for grabs. An NBC spokeswoman did not respond to a request for comment.

Fox, too, faces some challenges.

While the News Corp. (Research) unit battles CBS for No. 1 among the 18- to 49 year-olds, that's due mostly to the blockbuster success of "American Idol." Fox is fourth among total viewers and just lost its chief programmer, Gail Berman, to Viacom's Paramount Pictures.

Jon Nesvig, president of advertising sales for Fox, said in a statement that he expects a successful upfront based not just on "American Idol," but also "The O.C." and "24," whose total viewer ratings have surged about 60 percent and 25 percent this year, respectively.

Katz Television's Carroll is skeptical. "Fox is faced with the perception that they close down after 'American Idol' goes off the air," he said.

Meanwhile, CBS and ABC are heading into the upfront at the head of the pack.

CBS is the No. 1 network among prime time viewers and has a good shot at finishing the season as the leader among 18- to 49- year-olds -- a first for the network. CEO Les Moonves predicted last month that the Viacom-owned network will do even better than last year, when it sold an estimated $2.4 billion in ads.

The most-improved upfront player: ABC. A year ago the Walt Disney (Research) unit was the industry laggard, ranked last among total viewers and in the throes of a management shakeup. ABC sold an estimated $1.7 billion in "upfront" ads in 2004.

Then came the campy "Desperate Housewives" and "Lost," two hits that helped land ABC in second place among total viewers.

Since most commercial slots for these shows were sold during the 2004 upfront, ABC has a chance now to exploit its newfound success even though it ranks third among young adult viewers.

"They're in good shape," said Carroll. "They gain from the perception of a turnaround. I'm sure everyone's going to be looking at how they capitalize on that."

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