Los Angeles – On Tuesday, NBC, a subsidiary of Comcast (NASDAQ: CMCSA), announced that it reached $ 2.1 billion in advertising commitments for the TV season starting in September. According to sources, the commitments represent an increase of 17 percent over the last year and amount to more than 80 percent of NBC’s advertising inventory for the season. The source, who wished to remain anonymous, as contracts are private, also stated that ad rates between 7 to 8 percent.
The announcement represents the success of the company’s strategy to negotiate upfront advertising commitments alongside sister cable networks, including USA and demand was driven by the upcoming Winter Olympics in Sochi, Russia. The highest rates were paid for spots on the “The Voice” and “Sunday Night Football,” as well as the new programs “The Michael J. Fox Show” and “The Blacklist.” The total for NBC does not include cable or online advertising.
Meanwhile, the Fox Broadcast Network, part of 21st Century Fox, Inc. (NASDAQ: FOXA) announced that it had received $ 1.75 billion in advance commitments – Fox airs 15 hours a week of prime-time shows compared to 22 hours at the three major networks. As the most-watched TV network in the U.S., CBS (NYSE: CBS) announced that it has close to $ 2.7 billion in commitments, and Disney (NYSE: DIS) subsidiary, ABC announced that ad commitments rose by 7 percent.
The announcements come at a when over-the-air broadcasters are face increasing competition not just from Cable but also online networks such as Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Hulu (owned by Disney), and Netflix (NASDAQ: NFLX). According to Amazon CEO Jeff Bezos, ‘Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say, our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members.’
It is expected that NBC’s commitments will bolster second quarter results at Comcast, the biggest cable system in the U.S. Shares of Comcast were down 1.59 percent on Tuesday, and quarterly results are expected on Wednesday.
For comments and suggestions, leave a message in the comments section below. Like and Follow our Facebook page for more stories and to stay up-to-date with the latest happenings.