NBCU, Paramount and Fox Executives Say Advance Sales Nearly Ended in Solid Gains But Broader Advertising Prospects Are Mixed

The presales will soon end in single-digit increases from Paramount and NBCUniversal, according to CEOs Bob Bakish and Jeff Shell, according to the top three media executives.

Steve Tomsic, Fox Corporation’s Chief Financial Officer, was on board in the 9% to 12% range, presented Tuesday by analyst Doug Mitchelson at the CSFB Investor Conference, highlighting the company’s innovations and strengths in sport. The leaders spoke side by side during the question and answer session.

Shell is “excited” about the growth as NBCU expected lower “average single-digit” growth. The volume is comparable to last year. He said: “Reduce viewership and syndication due to cable cuts and everything else will be reimbursed at Peacock’s price.” The addition of the streaming service made NBCU the largest advertiser, she said, and sales had pretty much ended with only “strong” ones left.

Paramount performed at about “80% to 90%,” “almost, but not quite,” Bakish said, citing price increases on “high singles” for both broadcast and cable and “price increases. significant “on digital sound. He believes this is partly due to competitors who are “doing something that is likely very aggressive in terms of linear pricing, because we have seen agencies increase digital volume as the trend continues.” He didn’t specify who did what.

Tomsic noted that “the level of engagement is really strong, which is north of where we were at this point last year. And just as important in all of this, as well as doing it with all our traditional linear networks, we were able to to generate strong interest and engagement with Tubi, “said their AVOD service.

This is an executive window on the previous season, which will take time to close after the May introductions amidst rather intense economic uncertainty.

“The network-to-network market, of course, is a bit complicated,” Bakish said. “Visibility is mixed and there are some challenges in terms of economic resilience. We see some categories that are affected by things like the supply chain and inflation, but we also see some categories that are doing well: travel, movies, sports. And politics will be a big plus in the second half of the year. “

Shell said NBCU is starting to see some weakness in the dispersion market, but it is very segment specific. Auto spending is extremely weak, presumably due to supply shortages, so it’s a supply chain issue and not inflation, he said. Pharmaceutical advertising is also soft.

Inflation has been high for nearly 40 years, making all types of goods and services more expensive. A recession is feared as the US Federal Reserve raises interest rates to combat rising prices and a pandemic has a permanent impact on global manufacturing supply chains. Companies experiencing higher costs and uncertainty reduce their advertising budgets.

Tomsic pointed to the “soft element of things like linear fun, which is a relatively small component” in Fox’s portfolio. “The whole macro world is trying to dive into a recession, but we don’t see it from the point of view from the beginning.”

Papa Hayes contributed to this report.