NBC Universal's quarterly operating profit fell 45%, despite growth in the cable sector. GE chairman-CEO Jeffrey Immelt attributed the losses to a soft advertising market and fewer major DVD releases, but I suspect that it also has something to do with the fact that nobody watches NBC anymore. Not having a show in the top 20 is bound to hurt your profits.
http://www.variety.com/article/VR1118002555.html?categoryid=3284&cs=1
NBC's failing show Kings has resorted to Twitter to beg to be saved. While this seems incredibly desperate, I guess I have to give NBC credit for experimenting with new media platforms. Twitter could be beneficial to networks as a means of spreading content and buzz and attracting new audience members... but I doubt that it will be able to save the death that is Kings.
http://tvbythenumbers.com/2009/04/20/nbcs-kings-begs-for-directv-bailout-on-twitter/17060
The results of Accenture's second Global Broadcast Consumer Survey were announced in Vegas today at the opening of the National Association of Broadcasters convention, and there was good news and bad news. The good news: TV viewing is up. The bad news: media consumption is up in all other platforms. The number of people surveyed who said they would watch programs on a computer is 74%, up from 61% last year. The number interested in viewing content on mobile devices is up to 45% from 32% last year. While television isn't in danger of losing its viewers anytime soon, this willingness to try new platforms could be trouble for traditional television. This also makes me wonder, what's going to happen to all of these media platforms when people have enough money to start going out at night again instead of staying in. It doesn't matter whether people would prefer to watch Desperate Housewives on their TV or their computer or their phone when they're going out on the town instead.
Boston NBC affiliate WHDH has announced that they will air Leno's 10pm show after all. I wonder what NBC threatened the affiliate with to make them change their minds.
http://www.tvweek.com/news/2009/04/leno_to_air_on_whdh_after_stat.php
TV Networks just can't afford to spend as much as they used to. Due to tough economic times, networks have been going over their expenses and have come to the conclusion that they just cannot keep spending as much as they are for programming. They want to keep a few quality "tentpole" series to maintain the network identity, but watch for a lot more cheap fluff programming. In this current economic climate, the show that is cheaper to produce will have a much better shot of getting on the air. For us viewers, this means that we'll be seeing more reality and variety programs and fewer big budget dramas like LOST. We'll also be seeing more international co-productions. NBC is leading the cost cutting way with the big Jay Leno decision. Having a variety show 5 hours a week is much cheaper than having 5 hour long dramas, and while the quality of the network will most likely suffer, the bottom line won't.
http://www.variety.com/article/VR1118002340.html?categoryid=14&cs=1
I recently went to a Center for Communication event entitled Kids’ Media: It’s Easy Being Green. The event included a panel of women in the children’s media industry who are trying to promote environmental awareness and activity. The panel consisted of:
Amy Tucker- Co-Founder and CEO of Xeko Toys (Matter Group)
Sonali Fry- Editorial Director of Little Simon (Simon and Schuster)
Liz Kronenberger- VP of Marketing and Co-Founder of Good Egg Studios/ Elf Island
Jean Margaret Smith- Senior Vice President, Public Affairs & Administration, MTV
Networks, Kids & Family Group
Donna Friedman Meir- Chief of Creative and Strategy National Geographic Kids
Entertainment
I’ve always believed that the power of the media should be used to make the world better, and the women on the panel seemed to share my view. They all use different forms of media to raise awareness about problems we face with our environment and present ways that kids can help. I was shocked at how kid-friendly their programs actually were. Instead of just preaching to kids about the need to save the environment, the lessons were disguised under games and entertainment that kids enjoy. They can have fun and learn at the same time. I was also impressed at the ways that these women came up with for kids to help out. Many feel that kids can’t make a difference but these media programs present kids with ways that they can help their environment and develop good habits like recycling, using less energy, and creating less waste. These women kept emphasizing the need for kids to feel empowered and that they can make a difference. I thought the panel was very interesting and it’s comforting to know that there are people in the industry who are actually trying to improve kids and the world rather than just using children as a way to make more money on the next mindless trend.
Today Leslie Moonves, President of CBS, came to speak to my producing for television class, and he was surprisingly optimistic about the future of television. I suppose it's easier to be optimistic when you have the number one network, a fact that he reiterated several times during the night. One point that particularly interested me was his response when asked about whether the broadcast television model worked. His response was that the broadcast model is just fine if you do it right. CBS has programming that people want to watch and they’re still making money. It’s the networks that have bad programming that the model no longer works for. While he admitted that they are losing viewers and advertising revenue to the internet and cable, they can still draw 20 million viewers to watch an episode of CSI and that broadcast television was still the best place to advertise. He did, however, concede the fact that CBS has to look for new sources of revenue in addition to advertisements, like syndication and internet deals. When asked about NBC and Jay Leno’s new show, he said that he thinks it will benefit CBS because their dramas will have less competition. He also said this move means that NBC will only provide programming 5 nights a week for 2 hours a night, which means that it is no longer a competitive network. NBC has entered the tier of CW.
Is your favorite show on NBC getting cancelled? Blame Jay Leno! His show will take up 5 hours of prime time a week that would have otherwise been available for other programming. Shows like Chuck and My Name is Earl, which might get cancelled, would definitely stick around for another season without Leno's new show.
http://tvbythenumbers.com/2009/04/07/nbc-bubble-show-fans-looking-for-a-scapegoat-blame-jay/16226
Also Leno related- NBC affiliates are siding with NBC on the Boston WHDH battle, most likely out of fear. Affiliates have expressed frustration with NBC's lack of ratings producing programming, but it's better to be an NBC affiliate than no affiliate at all. It's amazing how much worry there is already about a program that nobody has seen.
http://www.broadcastingcable.com/article/195794-Affiliates_Stand_With_NBC_on_Leno.php
NBC Universal has come up with another way to take advantage of people in captivity. We've all seen clips of NBC programming run on a loop along with a barrage of advertising while trapped inside a Taxi cab, well now "NBC in Transit" will be featured in PATH trains. NBC Everywhere Senior V.P./General Manager Mark French said of the new venture: “The ability to tailor PATH screens based on the time of day or train platform provides an innovative way for our advertisers to deliver their message alongside relevant, customized, and entertaining NBCU content.” While broadcast networks are continuing to lose viewers to cable and the internet, they have to take advantage of every opportunity they have to sell ad time and attract more viewers.
http://www.broadcastingcable.com/article/195708-NBC_Launches_on_PATH_Trains.php
It's no secret that NBC affiliates are worried about how having Jay Leno at 10 every night will effect their profits. Leno's show will be the lead in to the local news, which is often the most profitable show for network affiliates. Well, one network in Boston has decided that they aren't going to take a chance on Leno, and will air the news instead. WHDH in Boston thinks that they can make more money by airing the local news at 10 instead of Leno's new show. NBC Universal is fighting back by threatening to strip WHDH of its affiliation as a means of deterring other affiliates from making the same choice. You know you're in trouble when an affiliate doesn't want to air your programming not because they think it's indecent, but because they think it will fail and not make any money. Perhaps things may have gone better for Jeff Zucker and NBC if they had let Leno go to another network, but I guess we will all have to wait and see what happens with the great Leno experiment.