Is Conan O'Brien Still Worth NBC Ad Rates on TBS?
In April, TBS lured Conan O'Brien over to its cable channel with a compensation package worth of a broadcast network star: an estimated yearly salary of $10 million, an 11pm time slot, and ownership of his show. It's an expensive gamble, but TBS plans to milk its Coco commodity for all it's worth -- and when it comes to the amount they're charging advertisers, they may have gone overboard.
This morning, word broke that TBS ad execs are charging an arm and a leg for ad space -- as much as NBC charged, in fact. Says the New York Post:
If the gambit is successful, it would mark the first time -- at least in late night -- that a cable channel has reached parity with a broadcast network.
"They are trying to get NBC's late-night [rate] for Conan," one cable executive told The Post. "They are being very aggressive with that."
In fact, at least one media buyer said TBS is asking for rates that are 20 percent to 25 percent higher than typical rates for late-night.
"It's insanity," the buyer said.
One reason TBS is seeking big bucks is because it paid top-dollar for O'Brien.
"He's a high-priced property that they clearly overpaid for," said the buyer
The story doesn't specify whether TBS is charging Tonight Show or Late Night rates, but either number would be a pretty penny for advertisers to spend on George Lopez's lead-in. Your thoughts?
· Talking Money [NYP]
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Comments
Thoughts? You expect me to have thoughts on ad rates?
Yes, we do! Well, I do at least.
This ad-rate story is just the latest in a long line of reasons why I think Conan's TBS show -- which could have been a breakthrough television endeavor -- is a disaster-in-waiting. Not only does Conan seem to have lost his sense of humor/self -- the reviews of his stage show have become increasingly fussy, harping on the fact that he's a millionaire complaining about losing his job while still getting millions and a new job -- but TBS is killing the Golden Goose before it even lays one egg. Conan will be lucky to get half his audience on cable, but they're going to charge NBC rates? How is that going to work?
Bierce called it. This might attract more Leno vs. Conan rage, but how many actual thoughts are going to be insightful, specifically about whether the rates are appropriate or not?
@Rosen: you're talking about ratings when it comes to cable? What planet do you live on that Nielsen ratings matter on cable for a show to be successful? To be honest, I'm shocked that the Tonight Show would get high ad prices. I'm 24....every person I know 10 years above and below my age range does not watch Leno or Letterman.
Furthermore, I've been to the live show.....he has not lost his sense of humor.
I live on the Planet Earth, where ratings are how television networks set ad prices. Unless you think ad prices are set by Twitter followers, in which case, Go Coco! Every person you know may watch Conan over Leno and Letterman, but that doesn't actual translate into real viewers. What do you honestly think he's going to get nightly on TBS when he was only getting around 3 million viewers on NBC?
Worth every damn penny!!!!
Does ESPN charge less to show a sports event on ESPN rather than ABC?
or does it have to do with audience size?
If TBS is right, the rate will stay high or go higher, if TBS is wrong, they will lower their rates.
TBS will promote the crap out of Conan's new program, including on TNT's baseball playoffs.
Did NBC promote Conan's Tonight Show at all? No, it promoted Leno's 10 p.m. show instead.
Advertisers want a show that is being promoted, not a show that the network ignores.
TBS is on the right track, and in my opinion correct to charge "network" rates.....November and December will prove TBS correct!
I will be back for the next installment although ome of these comments are killing me.
Please, tell more in detail..