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Posted: Sun., Jan. 25, 2009, 8:00pm PT

NBC flies with American Airlines

Duo strike deal for in-flight entertainment

NBC Universal has struck an exclusive deal with American Airlines to take over the carrier's in-flight entertainment service.

Pact, which spans two years (with option for a third), includes four 90-minute programs each month and begins March 1.

As part of the arrangement, dubbed "NBC Universal on American," the airlines has parted ways with CBS. The Eye net had programmed American's in-flight service ("CBS Eye on American") for more than 10 years; before that, ABC held the contract.

NBC Universal Domestic TV Distribution's Frances Manfredi was the architect of the Peacock's deal with American. Not so coincidentally, as a CBS exec, Manfredi helped construct the Eye's original deal with the airline in 1998. After a decade with CBS, American decided to reassess the in-flight account and put out a request for proposals last year.

"We were in a situation where we thought we should pursue and explore the best possible (airline) arrangement," said Manfredi, the distrib's exec VP-general sales manager, cable and nontheatrical sales. "The opportunity was right for both of us at the right time. They were looking for a more comprehensive partnership, and we set out to explore it with the intention of maximizing our branding on the air."

American -- cash-strapped, like all airlines -- was also looking to alter its financial arrangement: CBS had sold the in-flight ad time; NBC will not. NBC also had a leg up when it came to the sheer variety of its programming options: The Peacock will offer fare from NBC, USA, Bravo, Sci Fi, Oxygen, MSNBC and CNBC, in addition to Universal Pictures films and programs from NBC News and NBC Sports.

NBC U chief marketing officer John Miller said the American deal will put NBC Universal programming in front of 5 million people per month.

"It tends to be a fairly upscale audience," he said. "Plus a fair number of people in the advertising and talent community fly between New York and Los Angeles, which are big routes (for American)."

NBC U, meanwhile, had a looser agreement with United, which had deals in place with other programmers in addition to the Peacock. As a result, NBC -- which will part ways with United at the end of February -- decided to pursue the American deal.

Under terms of the pact, New York-based marketing firm Brand Connections will handle ad sales, sponsorships and in-flight product placement for "NBC Universal on American."

A CBS insider said the network had discussed continuing its partnership with American but also noted that in-flight entertainment doesn't reach as captive an audience as it once did: "There's much more competition on the plane -- iPods, computers, and American even sells Internet connections on certain flights."

Contact Michael Schneider at mike.schneider@variety.com

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