Writers’ strike may be closer to a settlement
The writers’ strike could be headed toward a settlement after the union withdrew its demand to represent reality show and animation scribes. The move reportedly could clear the way for the writers to adopt a pact similar to one approved by the Director’s Guild. Another positive sign came from the West Coast writers guild’s decision not to picket the Feb. 10 Grammy Awards, but it’s not known if striking writers will be granted an exemption to work on the show, according to this article. The New York Times

Reality shows the right venues for product integration
As broadcast networks plug more scheduling holes from the writers’ strike with reality shows, they’re also more likely to strike product placement deals, which are a better match with the genre than with scripted series, according to this article. “We’re looking to be the best partners for our advertisers,” said Ben Silverman, co-chairman at NBC Entertainment. The New York Times

NBC, in cost-cutting move, to scrap most pilots
NBC, owing to the writers strike and concerns over the state of the U.S. economy, will eliminate or cut back on the number of big-budget series pilots that air next season, NBC Universal CEO Jeff Zucker said Tuesday. The decision could save the network as much as $50 million a year, according to Zucker, who added, “It’s clear we are in a recession in the United States, and we’re going to have to manage our business accordingly.” The New York Times

Drugmakers discontinue TV ads for Vytorin
Merck & Co. and Schering-Plough Corp. are removing television ads for their cholesterol-lowering drug Vytorin after study results showed the drug to be no more effective than its high-dose generic component. “We’ve made the decision to voluntarily and temporarily suspend direct-to-consumer broadcast advertising in light of mischaracterization and misinterpretation of the enhanced trial results,” a representative for the drugmakers explained. Print ads for the product will continue to run, he said. Forbes/Associated Press, Advertising Age

FCC spectrum auction to begin Thursday
The FCC auction of the spectrum that will be vacated by the switch to all-digital TV broadcasts will begin Thursday. Among those eying to use the reclaimed broadcast analog band for new wireless broadband and advanced services are AT&T, Verizon Wireless, Google, EchoStar Communications and Cablevision Systems. The auction is expected to raise at least $10 billion for the U.S. government. Reuters

NBCU taps broadband video ad startup for new download service
Startup broadband video ad network YuMe has been hired by NBC Universal to manage and distribute video ads on shows available on the network’s new portal for series downloads, NBC Direct, which is in its test phase. The deal calls for YuMe to embed video ads in the episodes and for NBC to take care of ad sales. Adweek