Yesterday we reported that the canceled Golden Globes ceremony would trigger refunds to advertisers–“make-goods” in industry parlance–by NBC. Today, the WSJ puts a dollar figure on it: at least $10 million. (The Globes were worth $27 million in ad revenue to NBC last year.)
The Globes ceremony was canceled by NBC and the Hollywood Foreign Press, which was unable to reach an interim deal with the striking writers. NBC is airing a one hour press conference–sans stars–in its place on Sunday, but advertisers want nothing to do with it. The NYT says Prudential and Citigroup have withdrawn; advertisers like L’Oreal, Kraft, General Motors and Toyota will get big refunds.
This may all be a worrisome prelude for ABC, which is supposed to broadcast the Academy Awards Feb. 24. After the Super Bowl, the Oscars are the second-biggest event on TV, and last year’s show drew 40 million viewers and $80 million in ad revenue for ABC. This year ABC is supposed to get $1.5 to $1.65 million per 30-second spot.
In other strike news:
• Reports peg the studios’ weekly losses at $160 million; TWX’s Warner Bros has warned studio employees it will have to make cuts this month.
• Axium International, which provides payroll services for much of Hollywood, filed for Chapter 7 bankruptcy protection yesterday; the NY Post says that the strike was the “tipping point” that forced the company to fold up.
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