Re: ONLINE-ADS>> TV advertising

Susan Dorward (susand_at_cnet.com)
Wed, 7 Oct 1998 14:23:20 -0500 (CDT)

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> From: Gregory.Barrett_at_nbc.com
>
> Whoever posted the other reply did not read the details of
> the Snap deal. We gave them air time in place of cash for
> part of the payment for our share of Snap. Those commercials
> were contracted based on their equivalent on air value.
> Basically, they cost us nothing because we would have most
> likely used them to promote NBC shows anyway. There is only
> the opportunity cost. During the summer, there is less
> advertising and more unsold inventory for all broadcast
> networks. How many Must See TV ads did you see this summer?
>
> Disney worked out the same kind of deal when they purchased
> their stake in Infoseek.

This is not what I understood of the deal, and contradicts
published reports of the deal in the NYT and commends its
for its business savvy. I asked Snap's CFO Andrew Hyde just
to make sure, and here's his reply:

"Yes, he's wrong. There is NOTHING in the deal anywhere
that states that NBC will provide airtime in place of cash
payment for Snap. There was only an expectation that NBC
would want to promote Snap because they'd made the
investment in SNAP and the way to increase the value of
their investment would be to promote the brand on national
TV. So he's wrong when he says that 'whoever posted the
reply... did not read the details of the Snap deal.'
Because no guarantees were made at all. We simply hope
they'll continue to promote Snap because it's in NBC's own
best interest to do so."

Sue

--
Susan Dorward
Senior Software Engineer, CNET Inc.
908-575-7400 x235


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