NY Times: Network Model Broken
In many ways, today’s New York Times article bemoaning the state of network television isn’t really new as much as it’s a synthesis of what we’ve been reading for months now. But it is a good summary, with some interesting quotes. The suggestion: that “reality” tv will increasingly supplant drama, primarily because it is cheaper to produce.
“Prime-time television has been so expensive,†said Tim Spengler, president of Initiative U.S.A., an agency that is part of Interpublic. “The price premium is getting out of whack, and I think you’ll see some pullback.â€
The article quotes CBS Chairman Les Moonves as being the only major dissenter. He is quoted as saying the model isn’t broken, and the article points out CBS has 12 of the top 20 rated shows this season. But it also notes that at the same time CBS reported operating income down 40 percent in its television business.
One reason – prime time advertising rates are down. In the fourth quarter of 2008 the story says the average cost for a 30-second prime-time spot declined 15 percent, to about $122,000.
