Three takeaways from TV’s big upfronts week: NFL, streaming switcharoos and movie stars
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- While traditional TV still commands the bulk of U.S. advertising spending, advertisers’ increasing comfort with streaming was apparent.
- Netflix and Amazon marched into the week buoyed by the growing number of streaming subscribers who see ads.
The TV industry and buyers of commercial time were able to breathe a little easier going to their annual week of presentations known as the upfronts.
Not long before the curtain went up Monday at Radio City Music Hall for NBCUniversal’s event, President Trump announced he would hold off on tariffs on China, easing some of the economic uncertainty going into the selling season for television networks.
But the messaging from media executives throughout the week acknowledged that advertisers will be under pressure to get more from their marketing dollars. Between performances by Lizzo, Lady Gaga and the Dallas Cowboys Cheerleaders, ad buyers heard about the new artificial intelligence-powered tools for targeting specific audiences.
While traditional TV still commands the bulk of U.S. advertising spending, advertisers’ increasing comfort with streaming was apparent.
Seven years ago, YouTube executives had to reassure sponsors that the company would work harder to keep their ads from running in user-created videos that pushed conspiracy theories or hate speech.
But at the Google-owned platform‘s gathering at Lincoln Center on Wednesday, the audience saw a glowing testimonial video from Marc Pritchard, chief branding officer for Procter & Gamble, a company known for being meticulous about its marketing and media decisions.
Netflix and Amazon marched into the week buoyed by the growing number of streaming subscribers who see ads. Netflix said its service carrying commercials now reaches 90 million subscribers worldwide while Amazon’s Prime Video is now at 130 million in the U.S.
The week of parties and parade of celebrities offered a glimpse into the current state of the TV business. Here’s what stood out:
Live sports rule, especially the NFL
Walt Disney Co.’s TV lineup is packed with big-name talent. But the company kicked off its upfront with an opening number by an unlikely singing duo — former NFL quarterbacks Eli and Peyton Manning.
The audience at North Javits in Manhattan saw two more NFL stars, Kansas City Chiefs quarterback Patrick Mahomes and Philadelphia Eagles running back Saquon Barkley, before a single actor appeared on stage. It was a sign of the NFL’s vital importance to the company and the TV business writ large.
Disney — where not too long ago Chief Executive Bob Iger mused about spinning off ESPN — wasn’t alone in touting its commitment to the league.
NFL Commissioner Roger Goodell did a walk-on at the YouTube presentation to announce the platform’s first exclusive livestream of a league game, the Los Angeles Chargers season opener against the Chiefs in Brazil on Sept. 5.
On the Netflix stage, Goodell was joined by Cowboys owner Jerry Jones to plug a documentary series on the franchise and announce this year’s two Christmas games that will be carried on the platform.
Jason and Travis Kelce promoted their Wondery podcast at Amazon’s show. Former tight end Rob Gronkowski showed up at two upfront presentations, one for Fox where he is part of the network’s NFL coverage and later at YouTube because, well, why not?
NFL games accounted for 95 out of the top 100 most-watched TV programs last year and is now setting records on streaming. Netflix had its most watched Christmas Day in history when 65 million U.S. viewers streamed some portion of its NFL double header. (Goodell wore a Santa Claus suit for his announcement of this year’s Netflix games).
For TV industry veterans, the emphasis on live sports was surprising. “Traditionally entertainment was the driver of the upfront,” Ben Silverman, co-CEO of production company Propagate, told CNBC.
Or as ABC late night host Jimmy Kimmel put it during his annual Disney upfront roast: “This is all sports. What happened? We used to be so gay.”
But as the audience continues to be atomized by the growing number of streaming options, sports are more valuable than ever for advertisers who want to reach a mass audience.
Executives at Netflix, long on the leading edge of providing niche offerings to fit every consumer’s taste, now extol the virtues of the mass audience viewing experience now that it carries NFL games.
Live sports have become a lifeline to traditional TV, as most young viewers have turned to streaming for scripted series and movies. The trend was reflected in NBCUniversal’s presentation, which emphasized the arrival of the NBA on the network that will cost $2.5 billion a year.
“Tonight” host Jimmy Fallon may have summed it up best when he said, “Good morning, I’m glad to be at the NBA upfront — I mean NBC upfront.”
Planning for life after cable
Warner Bros. Discovery stunned the crowd at the Theater at Madison Square Garden with the announcement that its streaming service Max will once again be called HBO Max. The company stripped HBO from the name in 2023, believing the HBO brand name was too exclusive for the service’s ambitions to broaden its audience.
Dropping the prestigious HBO logo from the name of the service was a dubious decision from the start. But restoring it was a recognition of an undeniable fact: the future belongs to streaming, so why relegate a familiar and respected brand name to the waning cable box?
CNN and ESPN announced that their direct-to-consumer streaming services rolling out later this year will use the network names that have been familiar to cable viewers for more than four decades. The monikers will not carry a plus sign or any other designation that suggest the product differs from what’s on TV, and that’s by design.
Younger viewers may be forgoing cable subscriptions, but they know the CNN and ESPN brand names through their digital content. For those viewers, streaming isn’t an add-on, it is the way they watch TV
Movies are open for ad business, too
Not so long ago, seeing a movie star on stage at a network upfront presentation was a big deal.
But streaming has blurred the line by offering both series and original movies, and media companies are using that to their advantage when pitching to advertisers. The trend has given the platforms a bit more sizzle in their pitches.
Arnold Schwarzenegger riffed at length about his upcoming Christmas film for Amazon, “The Man With the Bag.” The moment got added mileage when the former California governor’s “True Lies” co-star Jamie Lee Curtis joined him on stage.
Charlize Theron took the stage at the Perelman Performing Arts Center to plug her upcoming Netflix feature “Apex.”
NBCUniversal teased the sequel to “Wicked,” which will eventually run on its Peacock streaming service.
Warner Bros. Discovery touted its sponsor partnerships for the theatrical blockbuster “A Minecraft Movie” and brought out James Gunn and Peter Safran, keepers of DC Studios, to say there will be opportunities for the upcoming Superman movie and other projects.
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