Sunday, July 22, 2012 9:45:11 PM
Right now the TV business is going through a shakeout as most industries are. OWN,the network that is Oprah Winfrey's dream is experiencing financial problems,but more importantly in her case the network can't attract viewers.
CNN is showing such low ratings that they paid for a recent interview with Casey Anthony,losing some coveted sponsors because of a bad decision.
Sponsors are shown a composite of the networks work a couple times a year. When a sponsor gives a tentative commitment to the network it gives both parties the ability to plan the upcoming season. An upstart network like Punch will offer ad rates on a tiered basis coupled to ratings. A commitment for advertising doesn't mean that money is paid up front,especially on a new network. After the network and it's advertisers have a relationship,advertisers may commit and pay up front and then adjust by ratings. It then becomes a smooth process.
I've had the opportunity to buy a few thousand spots over the years and from experience can tell you that the new guy pretty much has to buy his way in(low rates)
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