NBC may have to swallow three times the annual fees it was paying to retain broadcast rights to the Macy's Thanksgiving Day Parade, according to a report.
The Comcast-owned network — which has held the broadcast rights to the flagship holiday TV series since 1953 — is currently trying to strike a new deal to keep the festive event alive for the next decade, according to the Wall Street Journal.
To continue airing the show in all its Christmas glory, NBC may have to pay an average annual fee of more than $60 million — up from about $20 million under the current contract, sources familiar with the terms told the Post.
The deal will also include other Macy's events, such as Fourth of July fireworks over the Hudson River.
The nearly century-old parade — with its gigantic floats and balloons, school bands, famous stars, the Rockettes and Santa Claus himself — is one of the few television events capable of urging Americans to turn away from streaming services. Nearly 30 million viewers tuned in last year.
The show has kept fan-favorite balloons, like Snoopy and SpongeBob SquarePants, while continuing to keep up with the fads each year, adding a “Wednesday”-themed balloon this year inspired by the Netflix show.
As the show and other events such as football matches and award shows become more rare in their ability to attract an audience, they have also become more valuable.
For example, Disney reportedly paid a 20% premium to steal the Grammy Awards from CBS last month, the newspaper reported.
NBC took in $52 million in advertising last year for the flashy holiday event. The average cost of a business is $865,000, according to advertising research firm Guideline.
This year, the average ad will cost companies $900,000.
Production costs have risen from less than $4 million a few years ago to nearly $7 million this year, as celebrities have raised their fees for appearing on the show.
“The National Dog Show” follows NBC's hit show, and the puppy bowl has soared in popularity — totaling 11 million viewers last year.
A dog show — which costs less than a show and is particularly profitable for NBC — generated $14 million in advertising revenue last year, with a commercial slot selling for $372,000, according to Guideline.
Macy's has hired talent agency WME to handle negotiations with NBC rather than bargain for itself, according to the magazine. NBCUniversal Media Group President Mark Lazarus is participating in the negotiations.
The show will be a big loss for NBC, as it kicks off the channel's holiday programming. The network recently purchased the rights to Christmas classics like “Rudolph the Red-Nosed Reindeer” and “Frosty the Snowman,” which were previously owned by CBS.
