NBC might need to shell out triple its current fee to retain broadcast rights for the iconic Macy’s Thanksgiving Day Parade, according to reports.
The network, which has aired the holiday tradition since 1953, is negotiating a new contract that could see annual fees climb from $20 million to over $60 million, The Wall Street Journal reported.
This deal would also include rights to Macy’s other high-profile events, such as the Fourth of July fireworks.
The parade, with its signature floats, giant balloons, and celebrity appearances, has long been a viewer favorite, drawing nearly 30 million viewers last year. It remains one of the few live events capable of pulling audiences away from streaming platforms.
Advertisers are willing to pay a premium for the exposure, with the average commercial now costing $900,000, up from $865,000 last year. In 2023, NBC generated $52 million in ad revenue from the event, despite production costs spiking from $4 million to $7 million.
Disney’s recent acquisition of the Grammy Awards from CBS, which came with a 20% premium, highlights the increasing value of live TV events. Macy’s parade is no exception, as it continues to evolve with cultural trends, adding popular figures like this year’s “Wednesday”-themed balloon inspired by the Netflix series. These updates ensure the parade remains both relevant and profitable in a shifting entertainment landscape.
The stakes are high for NBC. The parade kickstarts its lucrative holiday programming block, which includes recently acquired classics like Rudolph the Red-Nosed Reindeer and Frosty the Snowman. Following the parade, “The National Dog Show” has also become a viewer favorite, earning $14 million in ad revenue last year with less production cost compared to the parade.
Macy’s has enlisted talent agency WME to lead negotiations, raising the stakes for NBCUniversal Media Group Chairman Mark Lazarus. Losing the parade would be a significant blow to NBC, as it anchors their holiday lineup and serves as a powerful advertising draw.
With live TV events becoming increasingly rare and valuable, NBC faces a critical decision: pay up or risk losing a cherished holiday tradition to another network. Either way, the negotiations underscore the escalating competition for events that still captivate mass audiences.
This article was written with the assistance of artificial intelligence.