Deal includes primetime, cable
The Fox broadcast and cable nets have inked a $90 million advertising and marketing deal with giant Tricon Global Restaurants, owner of such fast-food chains as Kentucky Fried Chicken, Pizza Hut and Taco Bell.
It’s the second big one-stop media buy in as many weeks, following Viacom’s recent announcement that it had signed up Proctor & Gamble in a cross-platform advertising pact said to be worth $300 million. These deals are starting to flow as creative alternatives to a particularly slow upfront marketplace that has networks fighting for every dollar.
Tricon said the pact, for the 2001-02 broadcast season, covers media buys on the Fox network’s primetime lineup, Fox Sports (including the NFL and NASCAR), syndicated shows and the Fox cable networks. Fox owns the Fox News Channel, FX and Fox Family.
Agreement also creates marketing sponsorship opportunities across the spectrum of Fox properties.
“We’re leveraging Tricon’s position as one of the largest media buyers in the U.S. to obtain the highest-quality programming at the most attractive prices,” said Tricon VP Amy Sherwood.
Based on the ratings from the previous TV season, “Fox has the most to offer advertisers outside of CBS,” which is part of Viacom, said SG Cowen analyst Ed Hatch. He reiterated his buy rating on the stock and price target of $35.