pilots. At the most, they got a CarseyWerner T-shirt with the line: “Carsey-Werner Wants 50% Of Whatever You Get When You Sell This T-Shirt On eBay.” At that time, the U.S. studios were already planning to invite buyers to various parts of the globe in the fall to screen their remaining crop of pilots. While we’re waiting to review the outcome of the L.A. Screenings’ September sequel and to appraise its October preview, let’s analyze the future of this 44-year-old purely organic market. This, however, cannot be done without looking at the state of affairs of the upfronts in New York. This is because the L.A. Screenings are a consequence of the upfronts. Without the upfronts, where the U.S. TV networks showcase their new seasons to ad agencies and clients with grand fanfare, there would be no L.A. Screenings, since new TV series would be introduced throughout the year (see related editorial on pg. 68). According to Ad Age’s Brian Steinberg, at last May’s primetime upfronts, the U.S. broadcast TV networks managed to increase their CPM (ad rates) even though ad revenues stayed flat as compared to last year. The $9.2 billion committed to primetime broadcast TV for the 20082009 season was achieved by also offering more ad time, which was taken from the scattered-market inventory. In other words, the networks had to sell more to get last year’s figures. It is unclear how the Fox TV network is reconciling the fact that, at the upfronts, it pledged to reduce commercial interruptions to 10 minutes per hour from the previous 18 minutes. Usually, the nets sell anywhere from 75 to 80 percent of their primetime spot inventory up front, leaving the rest for the scatter market throughout the remainder of the broadcast season, which is generally sold at a premium for last-minute ad buys. As far as the primetime CPMs are concerned, the New York-based Television Bureau of Advertising reported four types of rates floated by the networks: homes, 18-49, 25-54 and 18-34, with the latter being the most expensive at $48, which translates close to 0.05 cents per viewer. Steinberg also mentioned that not all nets are looking to do away with the upfronts, which, in effect, create a bidding situation that results in ad rate increases. Fox, for one, is counting on the upfronts, which, understandably, are not favored by advertisers. Nevertheless, for 2008, U.S. TV advertising has increased at least 3.2 percent for Anglo nets and up to 10.3 percent for the 75 Spanish-language cable networks (including the four overthe-air TV nets). This increase, compared to the previous year, is attributed mainly to the Summer Olympics and to the presidential election. The problem, however, is going to be 2009, for which New Yorkbased ad analyst Jack Myers predicts that broadcast TV networks’ total advertising will decline four percent to $18.76 billion. With this forecast looming, the networks have to decide whether to save some $200 million a year in pilot production costs and risk lower addollar intake, or to take a chance and fully restore the upfronts, hoping to generate enough expectations in May to bring up ad buys for the 2009-2010 season to at least four percent –– the same level as 2008. This would result in another zero growth year, but in reality would represent a gain of about $400 million just for primetime ad sales. While preparations were taking place to extend L.A. Screenings ’08 into the fall, arrangements for the 2009 main event were being finalized, with dates already reserved at the Intercontinental and Century Plaza hotels. Independent companies will begin setting up starting Tuesday, May 12, with suites opening on the 14th, and peaking on the 15th and 16th. As usual, the studios will begin their screenings on May 17 and end on Friday the 22nd, just before the Memorial Day holiday. Reviewing the May 2008 event, one has to say that it went especially well for indie distributors who, as usual, camped out at the Century Plaza and the Intercontinental hotels in the Century City part of Los Angeles. Exhibitors, who screened at their hotel suites, recorded an added flow of buyers who were, for once, not co-opted by the studios’ all-day presentations. This time, the indies’ main competitors were the shopping malls where buyers flocked, by virtue of the cheap dollar and Americanstyle bargains. Parties were confined to a few thrown by the independents. In all, 81 independent exhibiting companies set up shop at the hotels. Subsequently, London was deemed the preferred locale for the Screenings’ sequel. For many studios like CBS Paramount, Disney ABC, NBC Universal and Fox, most of the screenings started the week of September 8. Warner Bros. and Sony were the only ones not screening, since they showed their entire crop of shows in May. New this year both at the Screenings in May V I D E O • A G E OC T O B E R 2 0 0 8 (Continued from Cover) L.A. Screenings Extended 54 L. to r.: WWE Latin America's Celso Forster and EmilioRevelo with president Carl Demarco At the MGM/L’ItaloAmericanojoint party for the some 60 buyers from Italian-language TV networks, including those of Italian Swiss TV. L.-r.: MGM’s Gary Marenzi, L’ItaloAmericano editor Mario Trecco, Italian Consul General in L.A. Nicola Faganello and the Consul’s commercial attaché, Mariella Salvatori CBS Paramount’s Stephen Tague and Barry Chamberlain The Fremantle Corporation’s Irv Holender (Continued on Page 56) DIC Entertainment’s Dan Waite screening in his suite at the Century Plaza
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