The upfront negotiations are almost all completed, now. Most networks are facing 10% less revenue than past years, some as much as 15% less.
Some of that will come out of profits, but they cannot take that much out of profits before the credit starts evaporating. So expect to see a lot more cost-cutting in response to advertisers seeing less value from their commercials. For example, it was revealed this week that Heroes will have to trim $300K of cost from every episode.
I think commercial avoidance and commercial ineffectiveness are going to continue wreaking havoc on the industry.
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