David Zaslav’s Tough Upfront Tactics Spark Discord With Madison Avenue (EXCLUSIVE)
08.06.2022 - 23:01
/ variety.com
Brian Steinberg Senior TV EditorBefore finalizing Discovery’s purchase of WarnerMedia from AT&T, David Zaslav spent months holding friendly conversations with Hollywood moguls and influential agents. Now he’s locked in contentious discussions with Madison Avenue.Warner Bros. Discovery is making what media buyers and other executives say are severe demands on advertisers in the course of discussions around the industry’s annual “upfront” market, when TV networks try to sell the bulk of their advertising inventory.
Two media-buying executives say Warner Bros. Discovery is insisting that advertisers commit to high levels of volume and outsize rate hikes in order to gain access to top-rated programming. They also say the company is even threatening to withhold ad inventory on HGTV and Warner’s sports portfolio if they will not.
“They are packaging different products for the upfront, and I think there has been an initial shot of shock to the market,” says one buyer. With most TV companies seeking increases of between 8% to 12% in the cost of reaching 1,000 viewers, a measure known as a CPM that is central to upfront discussions, Warner Bros. Discovery is pushing for hikes that are more than double those figures, according to one of the buyers.Warner Bros.
Discovery declined to comment. But the company signaled in May it had high expectations for its upfront, with Zaslav likening the merger of Warner and Discovery to the launch of the Fox network by Rupert Murdoch. “More than 30 years ago, Rupert Murdoch broadened the media landscape from three players to four players,” the executive told an assemblage of advertisers last month.
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