For the first time since the NFL began programming on
TV, "none of the league's network partners will make money"
by selling ad time, according to Friedman & Battaglio of the
HOLLYWOOD REPORTER. Industry sources said that while ad
price levels "are up from last season's levels, they have
thus far fallen considerably short" of the 20-30% increases
which the nets had been seeking. The ad rate levels mean
the nets will "need to factor in other benefits," like promo
value for primetime schedules and local ad revenue for
affils, "when evaluating the success of their deals."
Josephthal & Co. media analyst Dennis McAlpine: "It is clear
they are going to lose money on the network level." Auto
companies have been "among the first" to sign deals at
increases "ranging from only 8%-15% in CPMs." Estimates
have the NFL deal leaving each net with "losses of" $150M-
$200M per year. Affils, who have been asked to "furnish
financial relief," would rather return inventory than cash,
and are "concerned about the larger implications of what
compensating" the nets for the NFL will do to their
"traditional relationship" (HOLLYWOOD REPORTER, 5/4).
WHEN YOU CLICK UPON A STAR: The NFL is "close to re-
signing" Starwave as its interactive agency and content
provider, according to Terry Lefton of BRANDWEEK. Although
the deal is not yet final, industry sources said that it was
"close to being done and would include" rights to the
SuperBowl.com Web site (BRANDWEEK, 5/4 issue).