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

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The national broadcast and cable television marketplace grew 19% to 20% in this year's Upfront market compared to the depressed 2009 market. While broadcast costs-per-thousand growth slightly surpassed cable CPM increases, cable sell-out levels are expected to average 60% to 65% compared to last year's 55%, and broadcast sell-out for the five leading networks are projected at 78% to 82%, compared to last year's 68%. Broadcast network primetime also suffered an aggregate average 6.0% 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 sell-out levels at costs-per-thousand comparable to broadcast and cable, with top tier syndication properties leading the pack.

Total 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 today's Upfront analysis. Jack Myers Media Business Report projects broadcast network advertising revenue will increase 4.8% in calendar year 2010 and 2.0% in 2011, generating 2011 revenues of $18.0 billion. Cable network ad revenues are projected to increase 7.6% in 2010 and 5.0% in 2011, generating total 2011 revenues of $21.0 billion.

The Upfront is only a partial predictor of national TV health but the growth and vitality of this year's market reinforces perceptions that the medium has regained its position as the advertisers' – and agencies' -- best friend. Most growth is being driven by advertisers' shifts of budgets from the scatter market to the Upfront, with some organic growth. While there will be 3%-5% "breakage," 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 double-digit increases threatened in the weeks before the Upfront selling period. While some deals required increases into the double digits based on low pre-existing historical costs, the high end overall was the 9.0% to 9.8% increases registered by CBS, Turner, USA and Lifetime.

Some sellers acknowledge that they could have held out for higher cost-per-thousand increases but point out the market psychology makes double-digit increases a difficult barrier, and add that this year's market increases need to be balanced against the 1.0% to 5.0% cost decreases last year, which could have been more severe.

Scripps Networks is among the lone hold-outs for double-digit 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 mid-tier cable nets and both top tier and mid-tier syndication. The Hispanic Network market got active last week, and should be finalized within the next week to ten days.

TBS' new Conan O'Brien late night program is reported to have generated costs-per-thousands 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 programming.

Unlike last year, when agency and network negotiations stretched well into the summer and included extensive promotional and cross-platform agreements, this year's market moved quickly and focused almost exclusively on traditional inventory and cost management. Digital, integrated and value-added components will be incorporated into deals this year but will not materially impact on them.

*Today's Myers 2010/2011 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 MyersMedia Business Report corporate subscribers and can also be accessed at www.jackmyers.com. 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 analysis.

**Leading 30 cable networks and groups