Fox, NBC Affils Wary Of Nets’ Ad Reduction Plans

Everybody agrees that reducing the primetime commerical load in the face of all the ad-free online competition is worth a try, but the affiliates are worried that they may eventually be called on to chip in some of their precious primetime minutes.

This fall, Fox and NBC will test the less-is-more theory of TV advertising – that if you cut down on the commercials in primetime, more people will watch longer and ratings and revenue will ultimately rise.

Affiliates of the two networks with whom TVNewsCheck spoke generally approve of the plans, understand the concept and have been given assurances by the networks that their prime inventory will not be affected.

But they do have their concerns.

“If the reduced load is a tremendous success, they may look at [limiting affiliate commercials] when our contract is up for renewal and try to pivot with fewer primetime spots,” said one affiliate.

Warned another: “If the networks do look at taking time away from local affiliates, and not just their own, that could become very problematic, in terms of the affiliate-station business relationship.”

Those two sources and others preferred to remain anonymous — an indication of the depth of their concern.

BRAND CONNECTIONS

The broadcast networks air between 14 and 18 minutes of commercials in every primetime hour, according to the research firm Kagan.

The affiliates get on average six of those minutes to sell locally or on the national spot market.

“Prime time is one of the top dayparts where we maximize our revenue at our stations,” said an affiliate source. “We understand that less commercial interruption could have a positive impact on viewership. But asking local stations to give up inventory would be very controversial thing.

“We need that inventory to generate revenue, especially since we’re now paying so much more in network compensation fees,” the source added.

NBC and Fox hope a lighter commercial load will make broadcast prime more appealing to viewers who have grown fond of the commercial-free environments of pay cable and the popular streaming services like Netflix and Amazon Prime.

The NBC plan is part of a larger corporate-wide strategy that also involves NBCU’s cable networks. It calls for reducing commercial time by 10%. Some 51 shows will be impacted, with the majority on NBC.

In the affected shows, NBC will run 22 minutes of uninterrupted programming followed by a “Prime Pod,” which will comprise just one minute of network commercial time.

After the Prime Pod, the number of commercial pods and ratio of network-to-local avails will be the same as before.

An NBC spokesman stressed that the reductions will come from national network sales, none from local. And limitations will only affect first runs of episodes, not repeats.

Meanwhile, Fox is planning to air slimmed down pods – dubbed JAZ pods – on three Sunday evenings within shows like The Simpsons and Bob’s Burgers. Seth McFarlane’s The Orville, which returns mid-season, will also get the special ad treatment.

According to a source close to Fox, the length of the pods will vary. But on average the network portion of the pods each half hour will shrink from 5.5 minutes to three minutes. On the hour-long The Orville, Fox will be reducing its load from approximately 11 minutes to five minutes.

The affiliate inventory will remain the same, the source said. “Maybe at some point, they’ll look at a different configuration.”

Despite the affiliates’ concerns, there is an acknowledgement that networks need to try new ways of attracting viewers. “There’s a lot of public research out there that shows that ratings are down, and we understand that viewers are used to things like Netflix and other services where there is no commercial interruption,” said a source.

“For the networks, it’s an interesting experiment,” said Stacey Schulman, chief marketing officer at Katz Media, in speaking of the reduced commercial load. “Their environment is already less cluttered than the cable environment. The next year will indicate how well they’re succeeding.”

If NBC and Fox decrease their commercial loads, will it allow stations to increase their CPM (cost per thousand) rates?

“No, I don’t think we’ll see much change, not just yet,” Schulman said. “There are some people who think there might be increased demand. But they’re not limiting the supply enough to create that much demand.”

There are a lot of variables to consider, when playing out supply-and-demand scenarios, said a station source. For example, if inventory becomes scarcer, but both the ratings for a particular show and advertiser demand are strong, then CPMs could rise.

However, if a show’s ratings are weak and the inventory is slimmed down, the CPMs might go down too.

Another broadcaster notes that there are creative ways for the networks to “de-clutter” breaks other than reducing commercial load.

Running a standalone 30-second spot between national and local weather cut-ins on morning shows (like the Today show and Good Morning America) is an approach that has been quite successful, the exec said. “We support such creative re-formatting.”

Schulman believes that the reduced commercial load may lead to even more creative advertising strategies. “If NBC has the opportunity to buy out the [affiliate] inventory in a particular show, that will create an interesting opportunity for advertisers to story-tell across an hour in different ways.”

Fox tried such an approach to a couple of season premieres of 24 over a decade ago, making them commercial free and giving Ford a chance to run longer ads on either end of the episodes.

While that went over well with the ad client, Fox reportedly found that trying the strategy on a more regular basis would be problematic, because the network would need to convince the affiliates to join in, and finding inventory in other shows to compensate the affiliates might be difficult.

“That’s what I’m most interested in seeing – how advertisers will iterate,” Schulman said.


Comments (39)

Leave a Reply

Johnathan Williams says:

July 25, 2018 at 1:32 pm

They will and they will cave like nice little affiliates always do!!! Actually, it will be their corporate jokers that will give away the store!!!!

Ronald Zeigler says:

July 25, 2018 at 4:13 pm

Get a Tivo. Press “Skip”. No commercials. I record and watch everything that way. If the “skip” feature isn’t on a particular network, just zipping through the commercial works too.

188bet says:

July 26, 2018 at 10:49 am

This article will help the internet users
for creating new blog or even a weblog from start to end. http://dwn.linksind.net/?S*3b7e0

188bet says:

July 26, 2018 at 10:50 am

This article will help the internet users for creating new
blog or even a weblog from start to end. http://dwn.linksind.net/?S*3b7e0

188bet says:

July 26, 2018 at 1:56 pm

Do you have a spam problem on this blog; I also am a blogger, and
I was wanting to know your situation; we have created some nice procedures and we are looking
to trade methods with other folks, please shoot me
an email if interested. https://www.miss-sc.org/Redirect.aspx?destination=http://alternatif188bet.com/tag/login-188bet

Rejuva Brain Supplement says:

July 26, 2018 at 2:35 pm

Good article and straight to the point.
I am not sure if this is truly the best place to ask but do
you folks have any thoughts on where to hire some professional writers?

Thank you 🙂

188bet says:

July 26, 2018 at 4:35 pm

Howdy! Do you know if they make any plugins to help with Search Engine Optimization? I’m
trying to get my blog to rank for some targeted keywords but I’m not seeing very good
success. If you know of any please share. Cheers! https://navilleauction.auctionserver.net/view-auctions/catalog/id/81/lot/1537/?url=http://alternatif188bet.com/tag/login-188bet

188bet says:

July 27, 2018 at 12:12 am

Write more, thats all I have to say. Literally, it seems as though you relied
on the video to make your point. You clearly know what youre
talking about, why throw away your intelligence on just posting videos to your
weblog when you could be giving us something informative
to read? http://www.totalfreewebcams.com/external_link/?url=http://alternatif188bet.com

link 188bet says:

July 27, 2018 at 3:55 am

I’m not that much of a online reader to be honest but your blogs really nice, keep it up!

I’ll go ahead and bookmark your website to come back later.
Many thanks http://www.bausch.com.au/en-au/redirect/?url=http://keo365.com/the-thao

reddit says:

July 30, 2018 at 3:57 pm

LIKE WHAƬ DADDY, TELL US, TELL US.? Each boys jumped up and
down eager to know the way to make God happy.

sajama national park says:

August 13, 2018 at 2:47 pm

Fantastic post.Thanks Again. Great.

Eve’s Rabbit Vibrator says:

August 17, 2018 at 11:55 am

Fantastic post. Really Cool.

شات فله الكتابي says:

August 18, 2018 at 7:28 am

Hey there! Do you use Twitter? I’d like to follow you if that would be ok.
I’m undoubtedly enjoying your blog and look forward to new posts.

chi flat iron cheap says:

August 18, 2018 at 9:21 am

The best ceramic straightening irons always offer an adjustable heat setting to offer
a safe and controlled treatment no matter flowing hair type.
Often my hair was weight-down with products or did start to frizz
up way before my next appointment. Over time, Corioliss have launched numerous stylish and latest versions of these irons, which
can be manufactured rich in quality, hard-wearing ceramics and tourmaline heating plates.

ben wa balls review says:

August 18, 2018 at 11:10 am

Muchos Gracias for your article post.Much thanks again. Great.

loveilook.com says:

August 18, 2018 at 2:09 pm

Well, first thing you must do is usually to make sure that the hoover isn’t plugged in,
understanding that all moving parts aren’t inside a
hazardous and potentially dangerous position. Replacing bags is not always convenient as there
are many makes and models instead of all stores carry each type, specifically if you own an old model.

Ease of removing and replacing the dirt canister – Rather than collecting dirt
and debris in a very bag that can be removed and tossed inside the garbage,
bagless vacuums collect dirt and debris inside a cup or canister that you’ll want
to empty regularly.

ตุ๊กตาตัวใหญ่ says:

August 18, 2018 at 4:01 pm

Asking questions are genuinely good thing if you are not understanding anything entirely, however
this paragraph gives pleasant understanding yet.

Top Rated Rotary Laser Level says:

August 18, 2018 at 4:21 pm

The form of laser level you may need obviously is determined by the sort of job.

Laser levels adjust measurements for things such as pictures
hanging on walls, heights in alignments with furniture and international calls accuracy.
Easy to use giving, which can present you with a good wway of attaining your target.

http://www.donaldwickham.com/Specs_To_Look_At_In_Bagless_Vacuum_Cleaneres says:

August 18, 2018 at 4:33 pm

This can vary widely depending on how often you vacuum, when you have pets that shed, and how
much carpet you have. Replacing bags just isn’t always convenient since there are a large number of models instead of
all stores carry each kind, especially if you own an older model.
These alone maoe bagless vacuum an indispensable tool for
cleaning.

roadschola.haja.net says:

August 18, 2018 at 4:49 pm

If you are enthusiastic about switching to a barefoot lifestyle, no
need to be a profound change. The warm up should are
only a few minutes and therefore the next ten minutes will be highh intensity intervals in places you adjust the particular level and
speed in short bursts of workout out then short
periods of lower level workouts or rest. Pro – Form ellipticals
introduces some of the best sophisticated features in the market such as the i – Fit Workout Card Technology and i
also – Fit Live.

Best Small Treadmill says:

August 18, 2018 at 6:02 pm

The treadmill comes with the best warranty that anyone can get for anything
around. One of the things that can be difficult regarding the assembly is that you could
actually tighten the bolts too much. Another way to challenge yourself onn
a treadmill is usually to adjust the incline.

More says:

August 18, 2018 at 11:06 pm

Some people need to workout at home nevertheless they don’t have enough space there.
The Schwinn 420 Elliptical Trainer may take one to the next level in a very professional,
efficient manner. The stride distances on ellipticals are
actually improved that makes workouts on the appliance more effective.

Milton says:

August 19, 2018 at 1:29 am

E mail advertising has a bad rap.

จํานองบ้าน ค่าธรรมเนียม says:

August 19, 2018 at 5:19 am

I could not refrain from commenting. Well
written!

Donny says:

August 19, 2018 at 7:46 am

EMEIBABY turut dikenali sebagai child service hybrid.

http://Inarts.in says:

August 19, 2018 at 7:59 am

TAKE NOTE OF THE PRICEYou must go with a treadmill which will suit this you have set for that equipment.
Some treadmills place the speed and incline options directly into the handrails.
Even if your home is small, you can still comfortably hold the collapsible treadmill build
mainly because it saves you space.

Electric Razor Reviews says:

August 19, 2018 at 8:24 am

Shaving is probably the most critical aspects of your day-to-day grooming routine, this also is valid
for both men and women. Pulsonic Shaving Technology At The
Finest – Let me introduce the very best priced
innovation of Braun Electric shaver suitable for shaving professionals,
at the least the Pulsonic shaving system. Consequently, the
list of cutters commences trimming job the moment strands of
hair are captured with thhe shaving top.

Www.instapaper.com says:

August 19, 2018 at 9:33 am

Powerful On-Demand Advertising Companies for businesses.

หมอนผ้าห่มราคาส่ง says:

August 19, 2018 at 11:18 am

Greetings from Los angeles! I’m bored to death at work so I decided to browse your blog on my iphone during lunch break.

I really like the knowledge you present here and can’t wait to
take a look when I get home. I’m amazed at how
fast your blog loaded on my mobile .. I’m not even using WIFI,
just 3G .. Anyways, good blog!

pokemon go apple download says:

August 19, 2018 at 11:38 am

Again, I am a geocacher, not a Pokemon Go
participant.

Sexy Lingerie says:

August 19, 2018 at 1:37 pm

“It is not my first time to visit this site, i am visiting this website dailly and obtain fastidious facts from here daily.”

rabbit signature beaded rabbit says:

August 19, 2018 at 2:04 pm

This is one awesome blog post.Really looking forward to read more. Great.

Stephanie says:

August 20, 2018 at 3:08 am

Nak cerita pasal Chiod Provider untuk Aisyah.

sex furniture reviews says:

August 20, 2018 at 3:31 am

I think this is a real great article.Thanks Again. Really Cool.

best android phones says:

August 20, 2018 at 12:59 pm

We are a gaggle of volunteers and starting a brand new scheme in our community.
Your site provided us with valuable information to work on. You’ve done
a formidable task and our whole neighborhood shall be grateful to you.

g-spot vibrators says:

August 20, 2018 at 6:10 pm

Im thankful for the article.Really looking forward to read more. Much obliged.

Slot Casino Machine says:

August 20, 2018 at 7:59 pm

Howdy, i read your blog occasionally and i own a similar one and i was just
wondering if you get a lot of spam feedback? If so how do you protect against it, any plugin or anything you can advise?
I get so much lately it’s driving me insane so any help is very much appreciated.

sprawdź says:

August 21, 2018 at 5:09 am

I constantly spent my half an hour to read this web site’s content everyday along
with a mug of coffee.

tourism management jobs in botswana says:

August 21, 2018 at 5:57 am

Hello, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam comments?
If so how do you reduce it, any plugin or anything you
can advise? I get so much lately it’s driving me mad so any assistance
is very much appreciated.


More News