Upfront Revenues Increase 19% to 20%. Average Network TV CPM Grows 7.8%.

Jack Myers Media Business Report is published every Monday exclusively for corporate subscribers Nonsubscriber free content is available at JackMyersThinkTankcom and MediaBizBloggerscom If you believe you are a subscriber and should have password access to the subscribersonly areas of this site please contact Jack Myers For corporate subscription information and costs click here Myers National Television Upfront Marketplace Report September 2010 August 2011 TV Season Change Compared to 20092010 Upfront amp160 amp160 amp160 amp160 amp160 amp160 amp160 CPM Increase amp160 Total amp160 Increase amp160 2010 v 2009 amp160 amp160 amp160 2010 v 2009 Broadcast Primetime Networks 5amp160amp160 810 amp160 8130 amp160 1950 Cable Network Total 740 amp160 7975 amp160 1900 CBS 90100 amp160 amp160 amp160 amp160 ABC 8090 amp160 amp160 amp160 amp160 Fox 8090 amp160 amp160 amp160 amp160 NBC 6575 amp160 amp160 amp160 amp160 The CW 70 amp160 amp160 amp160 amp160 Network Daytime 120150 amp160 amp160 amp160 amp160 Source Jack Myers Media Business Report Upfront Market Analysis June 2010 The national broadcast and cable television marketplace grew 19 to 20 in this year39s Upfront market compared to the depressed 2009 market While broadcast costsperthousand growth slightly surpassed cable CPM increases cable sellout levels are expected to average 60 to 65 compared to last year39s 55 and broadcast sellout for the five leading networks are projected at 78 to 82 compared to last year39s 68 Broadcast network primetime also suffered an aggregate average 60 loss of audience ratings Demand was strong across the board and was led by automotive financial entertainment consumer packaged goods health and beauty and retail National syndication is also achieving high sellout levels at costsperthousand comparable to broadcast and cable with top tier syndication properties leading the packTotal 2010 and 2011 calendar year cable revenues will again surpass broadcast revenues even when additional broadcast late night daytime and early morning revenues are included Sports are not incorporated in today39s Upfront analysis Jack Myers Media Business Report projects broadcast network advertising revenue will increase 48 in calendar year 2010 and 20 in 2011 generating 2011 revenues of 180 billion Cable network ad revenues are projected to increase 76 in 2010 and 50 in 2011 generating total 2011 revenues of 210 billionThe Upfront is only a partial predictor of national TV health but the growth and vitality of this year39s market reinforces perceptions that the medium has regained its position as the advertisers39 amp8211 and agencies39 best friend Most growth is being driven by advertisers39 shifts of budgets from the scatter market to the Upfront with some organic growth While there will be 35 quotbreakagequot or cancelled orders during the next few months networks are satisfied with their overall results and agency media buyers are satisfied that they avoided the doubledigit increases threatened in the weeks before the Upfront selling period While some deals required increases into the double digits based on low preexisting historical costs the high end overall was the 90 to 98 increases registered by CBS Turner USA and LifetimeSome sellers acknowledge that they could have held out for higher costperthousand increases but point out the market psychology makes doubledigit increases a difficult barrier and add that this year39s market increases need to be balanced against the 10 to 50 cost decreases last year which could have been more severeScripps Networks is among the lone holdouts for doubledigit increases at some agencies and they continue to negotiate Demand was high for female gross rating points which were down across the top cable networks and in Primetime As a result network daytime was hot for the first time in years and demand was high for Lifetime USA TBS Bravo Scripps AETN Discovery several midtier cable nets and both top tier and midtier syndication The Hispanic Network market got active last week and should be finalized within the next week to ten daysTBS39 new Conan O39Brien late night program is reported to have generated costsperthousands at or near comparable broadcast late night CPMs making it the first cable entertainment program to reach broadcast CPM levels following the success of cable sports and news programmingUnlike last year when agency and network negotiations stretched well into the summer and included extensive promotional and crossplatform agreements this year39s market moved quickly and focused almost exclusively on traditional inventory and cost management Digital integrated and valueadded components will be incorporated into deals this year but will not materially impact on themToday39s Myers 20102011 Upfront Data Report above is based on extensive interviews conducted by Jack Myers and by agency media veteran Larry Novenstern CPM growth and spending increases represent industry consensus influenced by personal experience and opinion This report is available exclusively to Jack Myers Media Business Report corporate subscribers and can also be accessed at wwwjackmyerscom Note These are preliminary estimates and subject to adjustment Additional overview insight and perspective will be reported in future weeks Several networks are still actively in negotiations and partial information is included in this analysisLeading 30 cable networks and groups

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Upfront Revenues Increase 19% to 20%. Average Network TV CPM Grows 7.8%.

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Upfront Revenues Increase 19% to 20%. Average Network TV CPM Grows 7.8%.

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