ITV

Tag: US TV

  • Merrill Lynch bullish on Viacom in US TV upfront

    Merrill Lynch bullish on Viacom in US TV upfront

    MUMBAI: The American 2004/05 broadcast network upfront advertising season was officially kicked off in the second week of May and the network presentations to ad buyers ended on 20 May. The coming days might see ad buyers finalising their strategies and going for the deals. Business is already selectively being placed at the cable networks.

    According to financial management and advisory giant Merrill Lynch’s 2004/05 upfront marketplace revenue forecasts for the broadcast and cable networks, the four major broadcast networks are expected to increase total upfront dollar commitments 4 per cent in 2004/05 to approximately $8.4 billion. Merrill Lynch predicts 10%-11% CPM growth at Viacom’s CBS.

    Though scatter pricing remains modestly up, last year’s exuberance of “across the board” double-digit CPM and total dollar increases for all networks would be missing for 2004/05 upfront, predicts Merrill Lynch. Merrill Lynch estimates 0%-3% CPM gains at ABC; 8%-9% CPM growth at NBC and FOX; and 10%-11% CPM growth at CBS. Though these projected CPM increases are for primetime, the good news is that the ad buyers have also started taking care of “value day-parts,” such as early morning and daytime, now.

    Merrill Lynch anticipates a bifurcated broadcast network upfront performance led by CBS (up 12% to $2.45bn total dollars; MLe) with the largest CPM gains and the most consistent schedule. NBC (up 2% to $2.95bn; MLe) is expected to hold its own with the onus is now on The Apprentice, which replaced Friends. FOX (up 3% to $1.55bn; MLe) is somewhat of a wildcard given its bold strategy of year round programming, and ABC (down 3% to $1.45bn; MLe) is aiming to stabilize from a clear down trend.

    In terms of total upfront dollars across all TV formats and day parts, Merrill Lynch estimates a 10% increase, approaching $23 billion, led by a $500mn share shift from broadcast to the cable networks. Merrill Lynch believes that total dollars for the cable upfront will reach $6.6 billion, up 20% (increase of $1.1 billion) on a combination of 8% secular ratings growth (A18-49, excluding news), varying CPM gains across networks, and relatively consistent inventory sellout across the bulk of key cable networks (historically 40%-60%).

    Merrill Lynch expects Viacom’s MTV Networks, Fox’s relatively newer networks including FX and Fox News, and Time Warner’s Turner Entertainment Networks to do well while highly targeted niche cable networks (such as Discovery Networks and Scripps) successfully leverages product integration and ad frequency.

    Merrill Lynch predicts Viacom to be the biggest winner in this year’s upfront. The reasons it list out to back the chances for Viacom are CBS’ impressive ratings which are up 4% in total households and 3% among A18-49, and MTV Networks showing solid ratings gains across the board. Affirming its dominance among younger viewers, MTV commands 23% share of viewers A18-34, up an impressive 500 bps vs. 18%. Nickelodeon appears to have enjoyed double-digit pricing increases vs. a year ago in the kids segment. Viacom will allow advertisers to purchase advertising across several networks in a single spot, offering significant audience in a single buy, suggests the Merrill Lynch forecast.

  • US TV networks to snub Bush speech

    US TV networks to snub Bush speech

    MUMBAI: It seems popular US TV networks have no time for President Bush! The channels are not expected to carry the primetime speech on Monday night in which he will talk about the future plans for Iraq.

    MNBC, Fox and ABC will proceed with their scheduled programming for the 8:00 to 9:00 pm while NBC and Fox’s sibling cable channels, MSNBC and Fox News, will carry the speech.

    Last May, networks had to reshuffle their Thursday primetime line-ups to carry Mr Bush’s address announcing the end of major combat in Iraq.

  • US TV viewers show signs of war fatigue

    US TV viewers show signs of war fatigue

    MUMBAI: It could be the fact that the US-led invasion of Iraq is not quite according to script, but viewers in America seem to be losing some of their appetite for gorging on the incessant TV coverage.
     
     
    Media outlets – which anticipated a quick and decisive victory in Iraq – now worry that viewers and readers are on the verge of information overload and need a break. Moreover, the cost of covering the war is beginning to weigh on their budgets.

    General Electric Co, parent of the NBC television, conceded on Wednesday that preempting some entertainment shows in favor of news had cost it $50 million in pretax profits.

    Ratings are still running strong at cable news channels CNN, Fox News and MSNBC, but have declined since the war’s early days. And with the new strain of pneumonia (SARS) from China people fear is fast spreading across the globe, it looks likely that SARS-related stories are going to increasingly rival for attention the space the war is getting.

    There is of course the coverage overload factor. Unlike the first Gulf war of 1991, where it was “only CNN”, this one is being covered 24/7 on three cable news networks in the United States.

    According to a poll released by the Pew Research Center for the People & the Press last Friday, there was also a steady increase in viewers who found the coverage “frightening to watch”.

    The constant television airing of the war has already led to questions about whether TV is distorting the event’s reality, or causing unrealistic expectations. The Bush administration is getting increasingly frustrated with more and more media reports questioning why the military operation isn’t already over.

    Fox News Leads ratings:
    While there may be some doubts surfacing as to exactly how smoothly this conflict will unfold on the ground, on the US airwaves, it is Fox News Channel that is leading the charge as far as cable news is concerned.

    This has certainly come as a big blow a blow to CNN, which was hoping to revive its fortunes (ratingswise) in this conflict.

    While Fox has been the top-rated cable news channel for more than a year, industry experts wondered whether that lead would hold during a big breaking news story. CNN overtook Fox, for example, on Feb. 1 when the space shuttle disintegrated.

    Despite CNN’s overwhelming advantage in reporting manpower, more Americans seem to want to watch the war unfold on Fox.

    And the reasons are not far to seek. None of that “objective reportage waffle” for Fox. It’s the in-your-face flag waving coverage that Rupert Murdoch’s network offers and it makes no bones about it. The conservative ideology that drives Fox’s prime-time programming is well reflected in its news coverage and the viewers have lapped it up.

    While this might lead some to conclude that CNN is down and out, it needs noting that the network that Ted Turner created has seen its own audience grow 53 per cent year to year while MSNBC has seen a 32 per cent growth. The difference of course is that during the first three months of the year, Fox’s viewership has grown by 75 per cent over the same period last year, according to Nielsen.

    And it doesn’t seem to matter matter how far right the network gets, because at the end of the day it is the ratings numbers that justify it all. Sample this: After an Ivy League professor wrote to Fox’s Neil Cavuto recently to remind him that he should remain objective when reporting on the current Iraqi conflict, this was the response: “You’re a lie, a fraud and an ingrate. Too clueless to appreciate the country that gives you the right to be the Ivy League intellectual Lilliputian you are. And too selfish to be grateful that in this country, even your type can find work.”

    Hallelujah.

  • News Corp reports $162 million net for Sept. quarter

    News Corp reports $162 million net for Sept. quarter

    MUMBAI: Rupert Murdoch’s News Corp yesterday reported first quarter consolidated revenues of $3.8 billion (1 July to 30 June financial), a 12% increase over the $3.4 billion in the prior year and consolidated operating income of $548 million, up 51 per cent over the $362 million a year ago.

    The year-on-year growth was driven primarily by substantial increases in the television and cable network programming segments, a company statement says. Net profit for the fiscal first quarter was $162 million, an increase of $89 million over the $73 million reported in the prior year. Net profit before other items was $162 million compared to $83 million reported in the first quarter a year ago. This is important because such “special charges” ($10 million last year) have reduced earnings in many of the company’s previous periods.

    With the events of 11 September 2001 well behind it, News Corp’s US TV operations posted much stronger earnings, fueled by a resurgence in advertising and subscriber gains.

    News Corp’s television segment reported first quarter operating income of $188 million, up $136 million versus the same period a year ago, reflecting an 81 per cent profit increase at the Fox Television Stations and an 82 per cent improvement at the Fox Broadcasting Company, the statement says.

    At the Fox Broadcasting Company, prime-time ratings in the US were up 13 per cent over the prior year among adults 18-49, driven by the record-breaking performance of American Idol (expected in India early next year), which was the summer’s top-rated series on any network.

    In Asia, Star’s operating results continue to improve, with losses declining 27 per cent compared to last year. The gains were fueled by 15 per cent revenue growth primarily from subscription and advertising revenue increases, and mainly on the back of the exemplary performance by the jewel in News Corp’s Asian crown – Star Plus in India. Industry reports say as much as 80 per cent of Star’s income in Asia is being generated out of India.

    Star’s revenue gains were partially offset by costs associated with developing new platforms (DTH and FM radio in operations in India among them) and expanding existing channels as Star continues to drive distribution and ratings across the region.

    The overall gains were achieved despite lower operating income at the company’s Fox movie studio and its newspapers in the UK. The company’s magazine division posted a modest gain in operating income, mostly due to its coupon business, as did its HarperCollins book publishing unit.