The world’s largest maker of personal computers will add $1billion to its ad revenue in 2020, according to an agreement announced Wednesday with the National Association of Broadcasters.
The deal, which also includes an agreement to make the CBS Television Network and CBS All Access the network brands, comes just a week after the networks announced that they would each earn $600 million in ad revenue.CBS All Access and CBS News Network are scheduled to become the network brand companies of CBS and CBS, respectively.
“As the network, we are very proud to be a part of the CBS brand,” said Julie Gans, chief operating officer of CBS Networks.
“We’ve made significant investments in both our content and our business to deliver better, more relevant content to our viewers.
I’m excited to see what we will be able to achieve in 2020 with our partnership with the companies of the National Assn.”
The network brand agreements were signed at the Television Critics Association’s summer press tour in Beverly Hills, California.
The agreements include a $1,000 upfront payment and $200,000 in annual recurring advertising.
The upfront payment will be $1 million, the CBS and the National Associations agreed, meaning the network and network brands will earn $1 per 1,000 viewers in 2020.
CBS will also have the ability to sell advertising on the CBS Network and its content, according the agreement.
In the deal, the National Attorneys General Association, which represents media companies, said the agreement “puts a stop to unfair and deceptive practices by advertising agencies and other providers that engage in misleading, deceptive and unfair business practices to influence consumers in the marketplace.”
The association said the agreements were an important step to ensure fairness in the advertising industry.
CBS, which is owned by Time Warner, said it was also pleased to have reached an agreement with the associations and that it was committed to maintaining the integrity of the advertising market.
Advertisers can still make use of the terms and conditions of their agreements, which are binding on the networks, and CBS and its network brands can still receive compensation for the advertising that is aired.
ABC and CBS will receive an upfront payment of $400,000 each, and ABC will earn a $400 upfront payment in 2019 and a $200 upfront payment each in 2020 and 2021.
CBS and ABC are the network’s brand companies, meaning they will earn an upfront fee in 2020 for each 1,001,000 ad viewers they reach during their respective seasons.
NBCUniversal is also an affiliate of CBS, and it will earn the network a $150 upfront payment from 2020.
Comcast will earn between $25 million and $50 million for each network brand it sells through the CBS network brand and will earn from $100 million to $150 million for the CBS networks brands.
Disney will receive $75 million for CBS networks and ABC networks in 2020 through 2020-2021, and NBCUniversal will receive a $100,000 royalty on the network branded content.
Amazon, which owns ABC, will receive between $60 million and 100 million for its CBS network brands.
The agreement also includes a $500,000, up to $5 million upfront payment, for each year of network advertising, and a new advertising deal with Amazon Prime that allows the company to use the CBS brands in online ads for Prime members.
All media companies that receive an arrangement under the agreement will be required to make their ads available for streaming and for ad-supported services, including Amazon Prime Video, Hulu, Netflix, and Apple TV.
A CBS Networks spokesman said the deal “gives us the ability and flexibility to continue investing in our network brand business while ensuring that our network brands are represented in the best possible way by the advertisers they serve.”
“This is a significant milestone for CBS as it is the first network brand deal we’ve ever negotiated with an advertiser,” said CBS President Les Moonves.
“It’s a win-win for the advertisers and our employees.
The deal ensures that our brand brands are available in the market and our ad sales grow.
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