NEW YORK (Media Week) - Fourth-ranked broadcaster NBC has quietly begun reimbursing advertisers an average of $500,000 each for failing to reach guaranteed ratings levels, the first time a network has taken such a step in years, media buyers said.
Networks usually offer make-goods -- free advertising slots -- in the event of such shortfalls. But NBC has none to give. In fact, no broadcast network has much ad inventory left between now and year's end -- except for, perhaps, a handful of units the week between Christmas and New Year's, and that doesn't do much for advertisers chasing holiday shoppers.
It doesn't appear that now is the best time to be working in the entertainment industry.