Wednesday, May 05, 2004

Network ad sellers look for ways to fit into the branded entertainment world.

When reality mogul Mark Burnett delivered the first season of "The Restaurant" to NBC's Jeff Zucker, it marked a turning point for primetime. Although the show itself represented yet another twist on the ubiquitous format by following a young chef through the trials and tribulations of running an eatery, the finances behind "Restaurant" were very different. Zucker, who's used to paying upward of $2 million an episode to license an hour of primetime television, received Burnett's show for free -- with a catch.

NBC gave up half the show's advertising inventory to the program's three sponsors and its financier, Magna Global Entertainment, which spearheaded the unique structure of the co-production of MGE, Reveille and Mark Burnett Prods.

Who could blame Zucker for turning down a free show? Well, for one, the network's ad-sales department. As advertisers reduce their network ad spending on traditional 15- and 30-second network spots -- forging closer ties with producers, who integrate products into their shows -- the broadcast advertising sales divisions are feeling the pinch.

Read the article: www.hollywoodreporter.com