For millions of Americans, it’s tradition. They gather in front of the TV on Thanksgiving morning and watch the Macy’s Thanksgiving Day Parade. For more than 70 years, NBC has broadcast the family event.
This year, about 30 million Americans are expected to tune in to see the marching bands, floats and balloons, including Snoopy, Minnie Mouse and Spiderman. Companies pay Macy’s for a place in the parade in exchange for advertising and publicity.
The parade also means big bucks when it comes to broadcasting. The Wall Street Journal reports that NBC and Macy’s are now negotiating a new contract that will take effect next year and keep the parade on NBC and its streaming service, Peacock, for the next decade. NBC is on track to pay $60 million a year for those rights. That’s a big jump from the $20 million it pays now.
Many people have heard about the high costs associated with airing a commercial during the Super Bowl each year. The Macy’s Thanksgiving Day Parade is similar.
According to advertising and research data firm Guideline, a TV spot’s price is about $900,000 this year. Last year, NBC pulled in $52 million in advertising. NBC pays out roughly $7 million in costs to broadcast the parade.
Analysts say all that money is indicative of the value of live programming to media companies in an era when many viewers are flocking to streaming.
The post Macy’s Thanksgiving Day Parade and the multimillion dollar deal with NBC appeared first on Straight Arrow News.
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Author: Craig Nigrelli
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