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Fox Sports Detroit Raising Advertising Rates Up To 25% For Tigers' Broadcasts

FS Detroit, after "record numbers last season" for Tigers telecasts, is "capitalizing on that thirst this year with double-digit advertising rate increases," according to Bill Shea of CRAIN’S DETROIT BUSINESS. FS Detroit Senior VP & GM Greg Hammaren said, "We're asking for it, and getting very large rate increases. I haven't seen this sort of year-over-year rate increase in my career. There is tremendous demand in every (advertising) category." A source said that FS Detroit in some cases is charging up to 25% more for a 30-second spot "than it did a year ago.” Based on the RSN’s 9.8 local rating for Tigers' games last season, the charge “would be $5,978 for an advertiser.” Because FS Detroit “reaches a statewide audience, that figure in many cases is a bit more expensive.” While Hammaren declined to discuss financial specifics, he said that bulk and longtime advertisers “typically negotiate discounts that drive down that cost." Hammaren said that FS Detroit has “about 150 advertisers for the Tigers' season," but did not say how many are new for ‘13. He added that the net has sold 80% of its advertising inventory for the season "at this point, which puts the network slightly ahead of last year.” SNL Kagan data shows that FS Detroit was “expected to see its operating revenue increase” to $136M in ‘12 from $119M in ‘11. The net “increased its programming expenses last year” to $99M from $87M two years ago, and “ranked 21st in operating revenue" out of the 36 RSNs tracked by SNL Kagan (CRAIN’S DETROIT BUSINESS, 2/25 issue).

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