From Variety: Disney is soaking up new commitments from advertisers in one of the driest “upfront” markets seen in recent years, and the company’s efforts to win those ad dollars from Madison Avenue have some rivals spitting out dust. In a bid to win overall commitments, Disney has been striking deals that call for significant “rollbacks” in the rates it charges to reach 1,000 viewers — a measure known as a CPM — on its Disney+ streaming hub, according to six people with knowledge of recent discussions in the industry’s “upfront” market. Each year during the upfront, U.S. media companies try to sell the bulk of their commercial inventory for their next cycle of programming. The Walt Disney Company has in some cases agreed to reduce CPMs for Disney+ by as much as 10% to 15%, according to some of the executives. In exchange for the lowered rates, Disney is securing deals that call for a certain level of volume of ad support across its portfolio. But some of Disney’s rate capitulation has angered rivals, who had hoped not to roll back their numbers to such a degree, and are being forced to do so in order to match Disney’s offer. #TV ’s money scramble takes place in one of the most difficult bargaining sessions in recent memory. Executives on both sides of the negotiating table agree that overall dollar volume is likely to be down. The dim outlook comes as advertisers move their dollars to streaming and digital #media, where there is less pressure to place ad cash months in advance, which is what upfront bookings represent. What’s more, there is a significant increase of digital-video inventory available, thanks to Amazon Prime Video’s recent decision to make its basic #streaming service ad-supported. The reduced demand and increased supply are hurting TV’s ad-sales efforts when the entire sector is in flux. More viewers are moving to on-demand streaming to watch their favorite dramas, comedies and movies, and, in more cases, #sports. Such migration makes the job of offering big audiences — TV’s main distinction from competitors — exponentially more complex. #advertising
Andrew P N.
1mo
I keep reading thst no one is working in Hollywood right now. The entettainment market is fuc%ed up.
Passionate about co-productions
1moWell, there’s the sign of another difficult year to come for all, and repercussions to commissioning and international