The "demise" of last fall's two biggest DFS companies DraftKings and FanDuel, "turned into an ugly reality for broadcasters' bottom lines in September," according to Jason Lynch of ADWEEK. Standard Media Index data shows broadcast television spend fell 13.2% in September versus the previous September, when revenue "swelled because of the freewheeling spending" of DraftKings and FanDuel. On the cable side, ESPN "remained on top in September, but its revenue was down" 10% versus last year, and the price of an average 30-second spot fell 4.5%. SMI found that the "average 30-second spot for all networks showing NFL games in September was $489,193," which is a 4% increase from last September. While Fox and CBS had an 11% "increase in cost for an NFL spot, 'Thursday Night Football' was flat for CBS and ESPN fell by double digits." The automotive category "purchased the largest quantity of ads across all NFL games in September, followed by telecommunications, insurance and consumer electronics." SMI CEO James Fennessy in a statement said, "Our new cost level data clearly shows that while ratings on football have been under pressure early in the season, average unit costs continue to increase. This demonstrates that live sport and the huge audiences it attracts are an outstanding drawcard for major brands. On the flip side, primetime and late night programming doesn't provide the same pull. Poor ratings are directly linked to falls in revenue and average unit cost declines" (ADWEEK.com, 10/26).
WHERE'D YOU GO? In N.Y., Belson, Sandomir & Smith in a front-page piece note "viewership through the first seven weeks" of the NFL season is down by 12% in the U.S. The trends that "drove viewers away from other programs on broadcast television in recent years, including cord-cutting and DVRs," has not "punished" the NFL in the same way. They are now, in "numbers that are alarming" for the league, which has grown used to fans’ "tuning in in good times and bad, and for the networks, some of which have spent 10-figure sums for the rights to broadcast the games." While it may be "too early to fully determine whether the declines are a hiccup or a serious setback, they are large enough to prompt league executives and team owners to confront the uncomfortable possibility that their leagues have hit their peak" (N.Y. TIMES, 10/27). Also in N.Y., Bob Raissman writes while the "list of reasons why NFL TV ratings have dropped this season expands, what short-term impact does the decline really have on the league and its TV partners?" If the "slide continues, and if they haven’t already, the networks airing NFL games will have to provide companies advertising their products on the telecasts 'make-goods.'" If the "downward ratings trend continues, it will affect what the networks can charge advertisers for NFL spots next season." There are also "immediate perception problems for the NFL to consider." The NFL "leaps from crisis to crisis" including Deflategate, Anthem protests and domestic violence. Raissman: "This is not what the NFL wants or needs" (N.Y. DAILY NEWS, 10/27).
