Ad Sales Trim NBC Feathers

(From The New York Daily News -- By Phyllis Furman)

The drama is getting worse at NBC.

THE PEACOCK NETWORK's upfront take dropped by between $800 million and $900 million, even more than earlier projections, industry sources said.

With its sales almost complete, NBC took in between $1.9 and $2 billion, compared with $2.8 billion last year.

While rivals raised their prices by between 2% and 6%, the GENERAL ELECTRIC-owned network was forced to cut by as much as 3%, the first time NBC had to lower rates in years, as buyers were unimpressed with new shows like INCONCEIVABLE.

"We have faced tough markets before and have always rebounded," RANDY FALCO, NBC UNIVERSAL TELEVISION NETWORKS GROUP president, told THE DAILY NEWS.

NBC has sold about 75% of its inventory.

After losing FRIENDS and failing to come up with other hits, NBC tumbled from first to fourth in the ratings race among the crucial 18-to-49 audience.

As a result, the sales leader entered the marketplace after its rivals finished selling.

NBC fared worse than expected in part because the upfront market was weak.

Prime-time upfront sales dropped by about 2% to $8.6 billion, insiders said.

The network also was hurt by rival ABC's decision to sell out quickly, early on. With red-hot hits like DESPERATE HOUSEWIVES and LOST, ABC had the shows most coveted by media buyers.

ABC effectively set the market when it raised its prices by between 4% and 6%. "That cost everyone money," a source said.

Nonetheless, ABC cleaned up, taking in $2.1 billion -- $500 million more than last year.