Predictions that CBS would lose money on their NFL TV
deal "appear to be greatly exaggerated," as the network
"will come close" to covering "the average cost of the
contract" in its first year, according to Stephen Battaglio
of the HOLLYWOOD REPORTER. CBS's AFC network sales finished
at $360M, $70M more than NBC's '97 sales. CBS's 14 O&Os
sold local ads amounting to $80M and network affils agreed
to contribute another $40M toward the rights fee bill. CBS
also received a $5M annual payment from DirecTV for its NFL
subscriber fees. With production costs "estimated" at $35M,
CBS "may have netted as much as" $450M for the year.
Battaglio notes that the $450M total "does not include" ad
revenue CBS-owned stations may have gained through local
"shoulder" programming. This week, CBS CEO Mel Karmazin
informed Wall Street investors that the company will show a
"small" profit on the '98 deal (HOLLYWOOD REPORTER, 1/15).
L.A. NFL NUMBERS DOWN BIG: In L.A., Larry Stewart
reports that NFL ratings in that city "took a major hit."
The average rating for AFC telecasts dropped 17%, going from
an 11.1 in '97 on NBC to a 9.2 in '98 on CBS. NFC telecasts
on Fox went from a 10.5 to a 10.0. Going back to '94, the
last season the Rams and Raiders played in L.A., AFC ratings
have dropped 35% and NFC ratings 32%. Stewart: "The
evidence is in. With no NFL team in the nation's No. 2
market, interest is waning" (L.A. TIMES, 1/15).
