19 high-end products, which due to their limited output, would increase prices. But ultimately, the luxury brand sector seems set on its marketing strategy, and the TV industry doesn’t seem to be able to present a convincing alternative. What VideoAge was able to glean from the TV industry were comparisons between local and network advertising for luxury brands, but these did not address the reason why luxury brands should be using television. Plus, U.S. networks’ ad sales executives did not answer VideoAge’s questions related to lack of luxury brands’ TV advertising. It has been reported that luxury brands have a reputation for catering to the superrich, but more than 50 percent of global luxury sales come from millions of middle-class shoppers who spend less than U.S. $2,300 a year on luxury goods. At this point, brands have to lure back middle-class consumers to jump-start growth. A report from Boston-based business consultant Bain & Company indicated that the luxury industry has lost 50 million customers since 2022, partly, it said, because hefty price increases put their goods out of reach for aspirational customers. However, international online store Mytheresa can sell $8,400 Bottega Veneta handbags, while luxury retail stores like Saks are struggling. Clearly, the luxury sector has to create demand with TV advertising, while generating sales with a supply-side marketing campaign with print media. (By Dom Serafini) law as a result of that leased program still goes to the licensee, whether a TV station airs a disclaimer or not. This includes the mandatory hourly station identification as well as technical issues such as required antenna power-output and frequency readings, etc. Consequently, any financial fine for such failure will be in the name of the licensee, not the programming source.” Schiffman continued: “Since the issue is not sale but simply leasing airtime, the FCC has no jurisdiction over the financial capability of the program content producer or distributor.” In order to secure airtime, a foreigner signs a financial obligation to a U.S. citizen who can then factor the contract for a bank loan in the U.S. with which to finance the acquisition or the creation of a TV station. This way the financing comes from the U.S. and not from the foreigner. “In terms of private financing arrangements between the station licensee and the time buyer,” said Schiffman, “it is strictly up to a bank to decide whether such an ‘account receivable’ is viable and is legally sufficient in case of breach of terms.” Foreign Media Ownership In The U.S. May Be Possible (Continued From Page 16) VIDEOAGE June 2025 Luxury TV Ads CEE’s #1 content market now has more reasons to attend. Screenings and sessions expand to the iconic Dorothea New to the agenda: NATPE Honors Europe Realscreen joins the agenda with a spotlight on formats Get a jump on planning; register now for earlybird savings. budapest.natpe.com Bigger is better June 23-26, 2025 InterContinental Hotel
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