Writers’ strike injects uncertainty into upfront ad-selling ritual
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[May 17, 2023]
By Dawn Chmielewski, Helen Coster and Sheila Dang
NEW YORK (Reuters) - An animated appearance by Ted, the foul-mouthed
teddy bear from the movie of the same name, a gaggle of “Real
Housewives” and a NBC News political correspondent appeared at
NBCUniversal’s annual ad-selling “upfront” presentation, as a writers’
strike prompted high-wattage acting talent to shun the event.
The annual series of glitzy presentations, held in May in New York City
by major television broadcasters, is one of the most important
advertising sales periods, with nearly half of an advertiser’s video
budget allocated for the next television season.
The backdrop of this year's presentations was different. Ad buyers were
greeted by picket lines outside Radio City Music Hall on Monday,
celebrities like Pete Davidson and Edie Falco, who attended last year's
NBCU presentation, were replaced by news personalities like "Squawk
Box's" Andrew Ross Sorkin.
An estimated $18.79 billion in ad spending could be committed for the
upcoming season, up a modest 0.8% from the current season, according to
researcher Insider Intelligence.
This year, advertisers and ad agencies may well use the strike as a
bargaining tool, said Erin Firneno, vice president of business
intelligence for researcher Advertiser Perceptions.
![](http://archives.lincolndailynews.com/2023/May/17/images/ads/current/comfortinn_PROMGRAD_2023.png)
“While it won't necessarily cause them to allocate fewer dollars
upfront, it will help buyers get more flexibility in their contracts,
something buyers have been pushing for,” said Firneno.
The writers’ strike, which has entered its third week, is also injecting
a new element of uncertainty for ad buyers, at a time when television
viewership is declining and the possibility of recession looms. The
walkout that began May 2 caused most late-night shows to go dark and
halted or delayed production on such high-profile series as Netflix’s
“Stranger Things” and HBO's "Hacks."
A protracted dispute may jeopardize the programming lineup for the fall
season. And contracts with two other major Hollywood unions, the
Directors Guild of America and the Screen Actors Guild-American
Federation of Television and Radio Artists, expire on June 30.
While the TV networks have long contended with splintered viewership
amid the rise of social media and streaming, the writers' strike puts
content production at risk, said Rishad Tobaccowala, a former executive
at advertising and public relations giant Publicis Groupe and advisor on
business transformation.
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![](../images/051723PIX/ent_d.35.jpg)
Writers Guild of America members and
supporters picket outside Sunset Bronson Studios and Netflix
Studios, after union negotiators called a strike for film and
television writers, in Los Angeles, California, U.S., May 3, 2023.
REUTERS/Mario Anzuoni/File Photo
![](http://archives.lincolndailynews.com/2015/May/02/images/ads/current/guzzardo_lda022609.png) "Marketers just want to sell stuff
and build brands,” he said. “TV networks are becoming less and less
of a driver for that."
In his opening remarks Mark Lazarus, the head of Comcast Corp's
NBCUniversal Television and Streaming, acknowledged the picketers.
“We are grateful for the contribution writers made to our company
and respect their right to demonstrate,” Lazarus said, acknowledging
a resolution may take time.
Last year, NBC’s upfront presentation emphasized star power as the
network returned to a live event after a COVID-19-imposed hiatus.
The all-star lineup included a performance by Kelly Clarkson and
appearances by Jimmy Fallon and Mariska Hargitay, among others.
Because of the strike, NBCU’s presentation this year relied more
heavily on its news talent including "Today" show co-hosts Savannah
Guthrie and Hoda Kotb; as well as musical performances by Nick Jonas
and Reba McEntire.
Ahead of the upfront presentations, media executives sought to
reassure investors about the strike’s impact. On May 9 Fox Corp
Chief Executive Lachlan Murdoch said that the timing of the strike
created some “hesitancy,” adding that Fox is well-positioned because
it focuses on two areas not likely to be impacted – news and sports.
Paramount Global Chief Executive Bob Bakish told investors on May 4:
“We've been planning for this. We do have many levers to pull. And
that will allow us to manage through the strike even if it's for an
extended duration.”
(Reporting by Dawn Chmielewski in Los Angeles, Helen Coster in New
York and Sheila Dang in Dallas; Editing by Anna Driver)
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