Monday, February 10, 2014

GCI: CBS to simulcast 8 Thursday night NFL games during the 2014 season

Some good news regarding Gannett (GCI) and its local CBS TV stations, as on Feb. 5th, the NFL chose CBS to simulcast half of its Thursday night games during the 2014 season.  This will likely help generate higher advertising revenues for GCI's CBS stations.  Companies and advertisers place higher bids for ads to be aired during NFL games than even the most successful and widely viewed prime time programs, even though the games will be simulcast on the NFL Network.  While top prices of 30-second ads to be shown during top prime time shows have been between $300K and $350K, the median price of ads for Monday Night and Sunday Night NFL games has been around $450K.  The more advertisers pay for national spots, the more glorified those time-ranges become, and the more local advertisers will likely pay.  CBS may have to move some of its very popular programs, such as The Big Bang Theory, to be shown on different nights; but again, the 29% - 50% premium that it can get for spots during the Thursday night games will make it all worthwhile.  Overall, we view this news as positive for GCI.

No comments:

Post a Comment