Typically, a broadcast network will offer advertisers additional time if a ratings shortfall occurs, but NBC has none to give, Reuters reported. NBC, a division of General Electric (NYSE: GE), is in fourth place in the network ratings wars, and currently has no standout new programs that media buyers desire, The Journal reported. GE's shares gained 30 cents to $37.33 in Wednesday morning trading.
Some industry executives blame the ratings dip partially on the Writers Guild of America strike that began November 5 and that has reduced the supply of original material, Reuters reported. Others cite technical changes in a new ratings formula, or the continuing audience 'fragmentation and dilution,' whereby the networks are losing viewers to specialized cable TV channels and internet activities. However, one experienced analyst believes that while the above variables play a role, the key driver of any ratings change remains a television network's core component: programming.
"At the end of the day, what does NBC have that's new and engaging, from a program standpoint?," analyst C. Leonard Bauer, formerly of Prudential, told BloggingStocks Wednesday. "They don't have an 'American Idol' type show like Fox. Their Thursday night line-up used to be 'Murderers Row' with shows like 'Friends' and 'Seinfeld.' Not so today. NBC has to find ways to re-connect with an evolving audience."
Stock Analysis: The downtrend at NBC television, which accounts for about 10% of GE's revenue, and 11% of earnings per share, is not likely to radically change the outlook for GE. Still, as the conglomerate's most visible division, it's important that NBC, at minimum, show signs that it's capable of overall audience growth in the increasingly-competitive prime time programming slot.
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Reader Comments (Page 1 of 1)
12-13-2007 @ 8:29AM
alphillips said...
From all I read NBC is ready for the Broom. A clean sweep of the incompetents from top down...a lot could be down by dumping the high priced uh...hmmm leadership at CNBC. Come on GE shareholders....rattle your sabers.