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
Bernie Sanders: Obama Administration "Should Kill" The AT&T-Time Warner Deal: "Higher Prices & Fewer Choices"
'Jack Reacher' Cuffs $31M But 'Mechanic' Puts Wrench Into China Perf; 'Girl', 'Inferno', 'Peregrine' Advance - Intl Box Office
Latest TV News
- ‘Being Mary Jane’ Adds Valarie Pettiford, Ashton Holmes & Chiké Okonkwo
- ‘Before The Flood’ To Premiere Commercial Free Across Nat Geo Global Networks October 30
- ‘The Tonight Show Starring Jimmy Fallon’ Showrunner Josh Lieb Departs For Uni TV Overall Deal, Trio Promoted To…
- Freeform Buys 'Bad Dates' Relationship Comedy From 'Veep's Timothy Simons
- Chris McCarthy Adds MTV Oversight; Named President Of MTV, VH1 & Logo
- ‘Sunday Night Football’ Ratings Rise As Seahawks & Cardinals Game Ends In Tie