NBC may be forced to swallow triple the yearly fees it has been paying to hold onto the broadcast rights for the Macy’s Thanksgiving Day Parade, according to a report.
The Comcast-owned network – which has had the broadcast rights to the holiday TV staple since 1953 – is currently trying to nail a new deal to keep the festive event for the next decade, according to The Wall Street Journal.
To continue airing the parade in all its Christmas glory, NBC may have to fork out an average annual fee of more than $60 million — up from around $20 million under the current contract, sources familiar with the terms told the Journal.
The deal would also include other Macy’s events, like the Fourth of July fireworks over the Hudson River.
The nearly century-old parade — with its floats and giant balloons, school marching bands, famous stars, the Rockettes and Santa Claus himself — is one of the few television events able to get Americans to click away from streaming services. Nearly 30 million viewers tuned in last year.
The parade has held onto 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 parade, and other events like football games and award shows, become more rare in their ability to bring in an audience, they have also grown more valuable.
Disney, for example, reportedly paid a 20% premium to steal the Grammy Awards out from CBS last month, according to the Journal.
NBC raked in $52 million in advertising last year for the flashy holiday event. The average commercial cost $865,000, according to advertising research firm Guideline.
This year, the average ad will cost companies a whopping $900,000.
Production costs have soared from under $4 million a few years ago to nearly $7 million this year as celebrities hike their fees for parade appearances.
“The National Dog Show” immediately follows the parade on NBC, and the puppy bowl has surged in popularity – totaling 11 million viewers last year.
The dog show – which costs less than the parade and is particularly lucrative for NBC – earned $14 million in advertising revenue last year, with a commercial slot selling for $372,000, according to Guideline.
Macy’s hired talent agency WME to handle negotiations with NBC instead of bargaining for itself, according to the Journal. NBCUniversal Media Group Chairman Mark Lazarus is involved in the negotiations.
The parade would be a big loss for NBC, since it kickstarts the channel’s holiday programming. The network recently bought the rights to Christmas classics like “Rudolph the Red-Nosed Reindeer” and “Frosty the Snowman,” which previously belonged to CBS.