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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (41554)	9/13/2001 10:08:03 PM
From: Toby Zidle	Respond to of 65232

"NEW YORK (Reuters) - U.S. television networks stand to lose hundreds of millions of dollars from their decision to broadcast commercial-free news coverage of the attacks on the World Trade Center and the Pentagon, advertising executives said on Thursday. ..... "Jack Myers, chief economist for research firm Myers Reports, estimates that the six broadcast networks -- CBS, NBC, ABC, Fox, WB and UPN -- as well as the cable news channels CNN, MSNBC, CNBC, MSNBC, stand to lose a combined $40 million a day by dropping their ads. ...." Isn't this a zero-sum game? The networks will lose $40 million a day, but advertisers will save $40 million a day, much of which can flow to the bottom line, help beat earnings estimates, and pull us out of a recession faster. Advertising doesn't so much create demand as it does channel demand. Buy a Chevy or buy a Ford? Advertising settles that. Buy a car at all? A lot more than advertising goes into that decision (job security, interest rates, Christmas bonus, etc.). Sure, GE, Disney, Viacom will have less profit. But won't KO, GM, PG, MRK have more?