NBC Repays Advertisers

Major U.S. broadcast network NBC Universal is compensating some advertisers after its shows failed to generate guaranteed audiences. NBC is reimbursing an amount that "represents an extremely small portion of NBC's business" to advertisers because of ratings shortfalls. Generally, broadcast networks offer make-goods or free advertising slots in the event of such shortfalls, but NBC has no standout new shows this year. "NBC is working with its clients to come up with creative solutions in a sales environment faced with a new business metric and a writers' strike," NBC commented in a statement in the Wall Street Journal. With the prevailing writers' strike, as well as more viewers switching to playback from digital-video recorders, various broadcast networks suffered ratings shortfalls this season. If the strike continues until next year, these networks would be forced to resort to reality shows and reruns.

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