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]