Never mind the strong upfront ad sales for broadcast and cable networks. The slowing economy is “finally starting to impact marketers’ budgets,” UBS Investment Research analyst John Janedis said in a report today as he downgraded his investment recommendations for Discovery Communications and Time Warner and lowered his stock-price targets for Scripps Networks and Viacom. He says the cheering from upfront sales will be short-lived: Broadcasters sold $9.3 billion in inventory, up about 6% from last year, while he expects cable networks to record about $9.2 billion in orders, up about 15% from last year. But advertisers will cancel a lot of those orders later this year. The scatter market “has finally started to slow, which could impact results as early as” the third quarter, he says. Janedis also is concerned about the declining ratings at broadcast networks and says that “cable is also at risk of losing a portion of its audience to other platforms” including online services such as Netflix. The fears about slowing ad sales led him to change his view of Discovery and Time Warner to “neutral” from “buy.” Time Warner has an additional problem in film. With the soft start to Green Lantern, “the success of (Time Warner’s) superhero strategy in a post-Harry Potter world is not a foregone conclusion,” Janedis says.
Look Out: Advertisers Will Cancel Upfront Orders As Economy Weakens, Analyst Says
What's Hot on Deadline
'The Brothers Grimsby': Trailer Or Titillating Clip "Shown" On 'Jimmy Kimmel Live' – Which Works Better?
Four Studios Bidding On 'Gone Girl' Author Gillian Flynn's Short Story 'The Grownup': Hot Package Du Jour
CBS Order For Matt Nix Drama Scrapped When Co-Production Deal Falls Through As Ownership Rules Pilot Season 2016
Latest TV News
- Obama Declines To Dance For Ellen DeGeneres’ Show; Republic Still Standing
- ‘Good Place’ NBC Comedy Series Casts William Jackson Harper
- Mark-Paul Gosselaar To Star In Fox Pilot ‘Pitch’
- CBS Comedy Pilot 'Superior Donuts' Casts Maz Jobrani
- Laura Dern To Star In HBO Death Row Drama In Development From Alex Gibney
- CBS Order For Matt Nix Drama Scrapped When Co-Production Deal Falls Through As Ownership Rules Pilot Season 2016