U.S. Television networks meet with their largest advertisers in May to seek commitments ahead of the new season starting in September. Broadcast networks may receive about $7.4 billion in advertising this year, 15 percent less than 2008, Anthony DiClemente, an analyst at Barclays Capital, estimated in an April 23 report. He expects total broadcast TV ad spending to drop 19 percent this year to $35.4 billion.
TV networks and station-owners face a steep drop in advertising as U.S. Automakers, the biggest source of sales, slash marketing budgets. In February, News Corp. Chairman Rupert Murdoch forecast a 30 percent decline in local TV advertising in the second half of the company’s fiscal year ending in June.
News Corp. Rose 37 cents to $8.52 at 10:11 a.m. New York time in Nasdaq Stock Market trading. Before today, the Class A shares had declined 10 percent this year.
Media companies are offering clips of TV shows and films, as well as complete versions of older programs and movies on the Internet as advertisers and viewers migrate online. Sony Corp.’s Crackle.com will provide 100 movies from the company’s film studio as well as TV shows and original productions.
Hulu and YouTube
Hulu.com, partly owned by News Corp. And General Electric Co.’s NBC Universal, climbed a spot in March to become the third most-watched Internet video site by providing prime-time TV shows from Fox and NBC.
Jason Kilar, Hulu’s chief executive officer, said at an April 22 conference in San Francisco that the site plans to add more content this year than in 2008.
Google Inc.’s Youtube.com, the most-watched Internet video site, is adding clips of programs from Disney’s ABC and ESPN sports cable channel as well as films from Sony Corp. To attract more viewers.
Both Hulu and YouTube are in talks with the four biggest record labels to add music videos, people familiar with the discussions told Bloomberg last week.