NBC could also be compelled to swallow triple the yearly charges it has been paying to carry onto the published rights for the Macy’s Thanksgiving Day Parade, in response to a report.
The Comcast-owned community – which has had the published rights to the vacation TV staple since 1953 – is presently attempting to nail a brand new deal to maintain the festive occasion for the subsequent decade, in response to The Wall Avenue Journal.
To proceed airing the parade in all its Christmas glory, NBC might need to fork out a mean annual charge of greater than $60 million — up from round $20 million below the present contract, sources conversant in the phrases instructed the Journal.
The deal would additionally embody different Macy’s occasions, just like the Fourth of July fireworks over the Hudson River.
The almost century-old parade — with its floats and large balloons, faculty marching bands, well-known stars, the Rockettes and Santa Claus himself — is likely one of the few tv occasions capable of get Individuals to click on away from streaming companies. Almost 30 million viewers tuned in final yr.
The parade has held onto fan-favorite balloons, like Snoopy and SpongeBob SquarePants, whereas persevering with to maintain up with the fads every year, including a “Wednesday”-themed balloon this yr impressed by the Netflix present.
Because the parade, and different occasions like soccer video games and award reveals, develop into extra uncommon of their potential to herald an viewers, they’ve additionally grown extra beneficial.
Disney, for instance, reportedly paid a 20% premium to steal the Grammy Awards out from CBS final month, in response to the Journal.
NBC raked in $52 million in promoting final yr for the flashy vacation occasion. The typical business value $865,000, in response to promoting analysis agency Guideline.
This yr, the common advert will value firms a whopping $900,000.
Manufacturing prices have soared from below $4 million a number of years in the past to just about $7 million this yr as celebrities hike their charges for parade appearances.
“The National Dog Show” instantly follows the parade on NBC, and the pet bowl has surged in recognition – totaling 11 million viewers final yr.
The canine present – which prices lower than the parade and is especially profitable for NBC – earned $14 million in promoting income final yr, with a business slot promoting for $372,000, in response to Guideline.
Macy’s employed expertise company WME to deal with negotiations with NBC as an alternative of bargaining for itself, in response to the Journal. NBCUniversal Media Group Chairman Mark Lazarus is concerned within the negotiations.
The parade can be an enormous loss for NBC, because it kickstarts the channel’s vacation programming. The community not too long ago purchased the rights to Christmas classics like “Rudolph the Red-Nosed Reindeer” and “Frosty the Snowman,” which beforehand belonged to CBS.
