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REPORT SAYS AD DOLLARS NOT ENOUGH FOR NFL NETS TO BREAK EVEN

          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). 

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