The presentations are on the books and now begins the negotiations determining how much money programmers will book in advance of the upcoming 2018-2019 TV season. Over the next month or more, the actual business deals will play out and the numbers will be counted. Until then, here are few takeaways from the lively presentation season.
The great ad load debate
With Netflix Inc. and other streaming subscription video-on-demand services impacting many watchers’ tolerance for commercials, Viacom Inc. and A+E Networks in recent years have scaled back their ad loads in select programming. This year during upfront presentations the topic was even hotter.
Turner Broadcasting System Inc. began reducing the commercial load with truTV (US) in 2015 and has also moved into select segments within a few other networks. The limited commercial interruption will encompass truTV’s entire total-day programming lineup by 2021 and will be incorporated into CNN (US) later this year, executives said.
Telemundo (US), meanwhile, will run only one 60-second commercial break during the first 25 minutes of its hour-long dramas. The move is part of parent NBCUniversal Media LLC's plan to trim the number of advertisements it airs within commercial pods by 20%, which would result in a 10% decline in ad time across its original prime-time broadcast and cable portfolio.
Joe Marchese, president of advertising revenue at 21st Century Fox Inc.'s Fox Networks Group, also talked up the use of only 60-second commercial breaks in FOX (US)'s Sunday prime-time lineup as well as fare in National Geographic and sports programming. He further discussed 6-second units, sponsorable streaming messages and talent-curated commercials as other ad formats aimed at getting brands closer to content. He claimed that FOX’s initiative will be "more noticeable" than other networks' ad reduction plans.
But not everyone is jumping on board. CBS (US) and The CW (US) continue to embrace traditional ad loads.
"We do not believe advertising is ruining the television business," Jo Ann Ross, CBS' president of sales and chief advertising revenue officer, said at the company's event. "We are unapologetic about our support for advertising and the premium environment."
Echoing those sentiments, Rob Tuck, the executive vice president of national sales at CBS' joint venture, The CW, said "clients are hesitant to foot the bill for the reduced loads," and thus the network has no plans to enact similar strategies at this juncture.
Facebook 'friends'
Though many networks continued to talk up the verification capabilities and full viewability of their spots as well as the brand-safe environments they offer to advertisers, the dialogue against digital avenues was generally less strident than in recent years.
NBCU served as a notable exception, however. CEO Steve Burke reminded audiences that "digital companies are being accused of invasion of people’s privacy, accused of false measurement." Fellow NBCU executive Linda Yaccarino also extolled the virtues of traditional television for advertising reach.
"You get it all under one roof. When the social media guys can do that, just let me know. But I wouldn't hold your breath. We're not in the 'likes' business. We're in the results business," Yaccarino said.
Reboots and transplants
Encouraged by the success of the return of "Roseanne," which ABC (US) proudly proclaimed as TV’s No. 1 show, and to a lesser extent the return of "Will & Grace" on NBC (US), reboots and reimaginings of series were once again prominent for the 2018-2019 TV season.
CBS will serve up "Murphy Brown" with most of its original cast members, while "Magnum P.I." will resurface with Jay Hernandez in the title role. The CW, which last year added a refreshed version of prime-time soap opera "Dynasty," will tip off its return to Sunday night with a reimagined version of "Charmed."
Then there are the transfer plays. ABC scooped up "American Idol" just one year after the former ratings juggernaut sang its farewell on FOX, and the music competition show performed well. So well, in fact, that it will trigger two nights for the Disney-owned network in 2019.
This year, FOX dropped "Brooklyn Nine-Nine," which was picked up by NBC, whose sister company Universal Television produces the comedy. NBC Entertainment Chairman Robert Greenblatt said the series has syndicated and international market value.
Instead, FOX added "Last Man Standing," which was dropped by ABC after the 2016-17 season, despite being the second-ranked comedy behind "Modern Family." The Tim Allen-sitcom will now be part of a one-hour comedy block with newcomer "The Cool Kids" on Friday nights.
M&A
Ad presentations and upfront negotiations aside, merger and acquisition activity continues to hang heavy over programmers. Next month, a decision is expected in the government's case to block AT&T Inc.'s purchase of Time Warner Inc. Further, NBCU parent Comcast Corp. has shown interest in challenging Disney's offer to buy various Fox assets for $52.4 billion with a sweeter offer.
Meanwhile, at CBS Corp. there is intrigue with controlling shareholder National Amusements Inc. Shari Redstone, the president of the holding company, wants the broadcaster, whose assets also include premium network Showtime / TMC / Flix (US), to once again combine with Viacom.
For their part, CBS and a special board committee filed a lawsuit against National Amusements, alleging breach of fiduciary duty. On May 17, a Delaware judge denied CBS' request for a temporary restraining order against National Amusements to consider a special dividend that would weaken the latter's voting power. Nevertheless, CBS directors not affiliated with National Amusements voted to dilute that control, pending court approval.
Some believe if the dilution gambit fails, CBS Chairman and CEO Les Moonves could lose his job. If that happens, the executive will have participated in his last CBS upfront at Carnegie Hall on May 16.
