For decades, this has been the week for network television to strut its stuff. But not everyone is in the mood to party this year.
Typically, the major broadcast networks -- Fox, ABC, CBS and NBC -- have spent about $5 million each to whip up excitement among advertisers for their new fall schedules. They would fly hundreds of stars and executives to New York for extravagant presentations at tony Manhattan venues, followed by lavish parties.
The five networks, including the upstart CW, rounded up $9.3 billion in prime-time commercial sales in the weeks after last year's "upfront" presentations.
But a souring economy and a lingering hangover from last winter's writers strike, which cut short the TV pilot development season and depressed prime-time ratings, could cast a shadow over the kickoff of the industry's springtime selling season, which begins today in New York.
"Advertisers are not going to be willing to pay higher prices given these ratings drop-offs," said Jason Maltby, a top executive at ad-buying firm Mindshare.
The upfront presentations will be a toned-down affair. CBS Corp. and Walt Disney Co.'s ABC canceled their parties. ABC plans to downsize its presentation by holding a more low-key "sales meeting" at Lincoln Center. NBC Universal ditched its Radio City Music Hall event in favor of a more trade-show-like expo "experience" at nearby Rockefeller Plaza that will showcase all of its media units -- not just the fourth-placed NBC network.
"The world has indeed changed," Michael Nathanson, media analyst for Bernstein Research, wrote in a Friday report about the upfront process.
In an age of shifting consumer tastes and viewing patterns, the giants of television are losing stature. Digital video recorders that enable viewers to speed through commercials are just one technological threat to network advertising revenue.
Younger viewers also are turning to such places as YouTube and Facebook for their entertainment fix. At the same time, cable television is attracting more viewers than the networks, thanks in part to its specialized programming such as the NBA playoffs, provocative series and year-round schedule.
The trend only accelerated during the writers strike, which left the broadcasters running weeks of repeats that drew dismal ratings.
"The networks were already headed for a very difficult season, but the strike made things worse," said Jack Wakshlag, chief research officer for the Turner cable networks. "This season has seen the biggest loss in audience in broadcast network history."
