Ad Revenues for ABC, CBS and NBC Down by 21.5 Percent for the Third Quarter and 8.3 Percent Year to Date, According to BCFM

Ad Revenues for ABC, CBS and NBC Down by 21.5 Percent for the Third Quarter and 8.3 Percent Year to Date, According to BCFM

BIA's Fratrik Cites Absence of Olympics as One of the Key Factors

CHICAGO, Nov. 16 /PRNewswire/ -- Combined advertising revenues for the ABC, CBS and NBC TV networks were down by 21.5 percent for the third quarter and by 8.3 percent for the first nine months of 2005 when compared to last year's results, according to the Broadcast Cable Financial Management Association's (BCFM's) report on figures compiled by Ernst & Young. Total net revenues of $2.2 billion for Q3 2005 were down by approximately $605 million from the third quarter of last year, led by a $707 million decline in sports advertising. When compared with results from third quarter 2003 total net revenues for the quarter were four percent higher, with sports advertising down by slightly more than one percent.

Categories that gained ground when compared with last year's third quarter results included prime time, which was up by 8.5 percent and the AM daypart, up by 6 percent. The AM daypart was higher by more than 7 percent for the first nine months of 2005, followed by year-to-date gains in news, up 3 percent, and prime time, up by $87 million over last year to-date results for 2004. The children's category was down by more than 5 percent for the quarter and 12 percent year-to-date.

"The dramatic decrease in network advertising revenues for the third quarter is both shocking and not surprising," according to BCFM member Mark R. Fratrik, Vice President, BIA Financial Network. "The loss of over $700 million in advertising revenues from sports programming caused by the lack of a Summer Olympics this year was to be expected, though it is still a large number. At the same time, prime time revenues partially lessened that impact with nearly $100 million more in revenues. Still, the networks need to be concerned as to the long term growth history. Looking back to 2003, another year without a Summer Olympics, the total network revenues have increased only 3% per year, above the inflation rate but lower than the overall economic growth of the country."

"BCFM is pleased to add Mark Fratrik's analysis to our report," added Mary M. Collins, President and CEO of BCFM, "Mark, a noted industry economist, is a former BCFM Board member and remains active in BCFM affairs. As Mark noted, long term growth is important to the future of network broadcasting and the networks' move to test new content delivery options demonstrates that that they are seizing these opportunities while continuing to enhance results in existing categories, as exemplified by this year's increases in prime time and AM daypart advertising."

Copies of the report may be purchased from BCFM by calling 847.716.7000 or going to http://www.bcfm.com/bcfm_news/NetworkOrderForm.pdf on the WWW.

About BCFM:

The Broadcast Cable Financial Management Association (BCFM) provides education, networking, information, and signature products to meet the diverse needs of financial and business professionals in the broadcast, cable, and electronic media industries throughout the U.S. and Canada. More information about BCFM is available on its web site: http://www.bcfm.com/. BCFM's Broadcast Cable Credit Association (BCCA) subsidiary provides revenue management services, including professional development programs and credit reports on national and local TV, radio and cable advertisers. More information about BCCA is available at http://www.bccacredit.com/.

Source: Broadcast Cable Financial Management Association

CONTACT: Andy Holdgate, +1-303-791-3422, holdgatepr@comcast.net, for
Broadcast Cable Financial Management Association; or Jamie Smith of Broadcast
Cable Financial Management Association, +1-847-716-7000, jsmith@bcfm.com

Web site: http://www.bcfm.com/
http://www.bccacredit.com/

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