Media Stocks Suffer As Investors Fear Ad Sales Will Weaken

COMMENTS (4)

• What will save media ad sales the next thirteen months will be the election campaign.

  Thanks to the Citizens United decision, which allows corporations, special interest groups, and labor unions to spend unlimited amounts of money in political campaigns and lifts restrictions on the kinds of political advertising outside groups can run during election campaigns, there’s going to be an unprecedented wave of political ad spending.

  How big?? Billions.

  In fact, in the last couple of months prior to Election Day next November, it may be impossible for non-political advertisers in many parts of the country to buy TV (and radio spots on some stations, mainly all-news or talk stations) commercial spots.

  For example, expect Detroit to delay introducing their 2013 models until after Election Day because it may be impossible for automakers to buy TV time in early Fall, traditionally the time new cars are introduced.

  For TV stations (and radio stations programming news or talk formats), 2012 could be a windfall.

  But if the economy is still weak after Election Day 2012, media may suffer ad revenue declines in late 2012 and 2013.

  Comment by Joseph — Monday October 3, 2011 @ 7:17pm EDT  Reply to this post

• Just a friendly reminder…(from 2010)

  Phillip D – CEO amassed $84.5 million in stock, salary and other benefits during Viacom’s fiscal year, which ended on Sept. 30 (2010). Included in the giant sum is a one-time stock award — $31.7 million — which is dependent on financial goals over the next five years and was part of his new agreement signed in April. The company’s three top executives — Dauman, chairman Sumner Redstone and COO Thomas Dooley — were paid $165 million in stock

  Comment by TheO'ReallyFactor — Monday October 3, 2011 @ 7:18pm EDT  Reply to this post

• Why are ad sales down? Couldn’t have anything to do with the fact that movies this summer all sucked balls, could it?

  Comment by Cash — Monday October 3, 2011 @ 11:01pm EDT  Reply to this post

• So ad sales are down. Wonder why that is?

  Could it be because of the uncreative and formulaic broadcast programming decisions made by the commercial networks?

  Could it be because the public is finally growing tired of watching doctors, nurses, cops, and lawyers in interchangeable shows, many of which don’t even last a season?

  Could it be because viewers have turnedf away from one mindless talent show or reality show or game show after another?

  Could it be ebcause aside from the final Harry Potter film, the rest of 2011′s revenues were actually less than last year?

  Could it be because movie studios insist on rebooting, or reimagining, or relaunching, or re-sequel-ing the same old titles?

  Could it be because mining old 1960s and 1970s and 1980s television shows has not brought in the eyeballs?

  Amd could it be that people can barely afford to buy food and gas these days?

  Uncreative and uninspired programming has real consequences. This is it.

  Comment by carthy — Tuesday October 4, 2011 @ 3:16am EDT  Reply to this post