12/9/2008

Mic Mell

NBC Chief Zucker announces that programming hours may be cut.

NBC is not doing well in the ratings race. Things are getting so tight that Chief Executive Jeff Zucker recently announced to investors that the network may cut the number of hours of programming it airs. NBC has been working to trim the fat recently, looking to save over $500 million in costs, and cutting 500 jobs.  
  
A major factor in the cuts are the slump in advertising revenue, blamed on economic sluggishness. While NBC's cable holdings, including USA Network, Bravo, and MSNBC are doing great (bringing in 60% of NBC/Universal's revenue), the actual network is falling hard in a climate where all the major networks are scaling back.  
  
The major networks produce an average of 22 hours of programming each week, and Saturday isn't a part of that equation. Only CBS offers original fare on Fridays, and FOX has cut back to 15 hours of original shows. On the programming cuts, Zucker said, "If you don't, then the broadcast network will end up like the newspaper companies, or worse, like the auto companies."  
  
Once one network cuts back, the rest are likely to do the same, and industry experts think the move may be difficult to turn around down the road. The response to Zucker's announcement among local affiliates has been favorable, as they are hungry to start experimenting with home grown content. It isn't cheap, but affiliates see it as a powerful tool to draw in audiences. While the best case scenario is NBC delivering a hit, KSHB/KCMI General Magaer Craig Allison said "if that doesn't happen, I think this does present an opportunity."  
  
No matter what the networks choose, we have entered a new era for network television, and the future is unknown.