NBC Universal, which recently was the subject of a proposed transaction between General Electric (GE) and Comcast (CMCSA), is having a serious problem with The Jay Leno Show. It's not performing well in the ratings. But wait, there's more, as a typical infomercial narrator might intone: The Tonight Show isn't faring any better under the aegis of Conan O'Brien.

Worse, the issues with the 10 PM Leno programming asset go beyond just his ratings. The show is exerting a negative halo effect over the local newscasts. If you don't have a strong lead-in, then the content that follows will suffer.

Continue reading The Leno/O'Brien Puzzle: What Should NBC Do?

The Leno/O'Brien Puzzle: What Should NBC Do? originally appeared on BloggingStocks on Fri, 08 Jan 2010 15:30:00 EST. Please see our terms for use of feeds.

Well, I still feel this is a risky move, but I do have to say that an article by Scott Collins over at the Los Angeles Times has piqued my interest in the expected economical benefit that Leno-at-10 might imply. Leno might not bring in a ton of eyeballs, but his profit margin could be acceptable given the lower capital necessary to fund his extravaganza.

Continue reading Should GE shareholders be happy about 'The Jay Leno Show'?

Should GE shareholders be happy about 'The Jay Leno Show'? originally appeared on BloggingStocks on Mon, 14 Sep 2009 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Jon Stewart's CNBC attacks bashed by NBC chief

Jon Stewart's CNBC attacks bashed by NBC chief originally appeared on BloggingStocks on Thu, 19 Mar 2009 14:00:00 EST. Please see our terms for use of feeds.

I found myself writing about General Electric's (NYSE: GE) NBC the other day, specifically about CEO Jeff Zucker's apparent flummoxed realization that radical changes may be needed to stanch the ratings erosion that have plagued the major broadcast networks in this brave new media world. Now, I have another, equally interesting subject to look at: Jay Leno will be given a talk show after he hands The Tonight Show over to Conan O'Brien. The program will air on weeknights from 10 p.m. to 11 p.m.

As we all probably know by now, NBC was intent on having O'Brien take over Leno's position as a way of ensuring that he would stay at the network. Leno, as one would imagine, reportedly hated giving the job up. NBC, however, did not want Leno to head over to another network. Supposedly, Disney's (NYSE: DIS) ABC was perhaps interested in taking Leno on. So, the powers that be at the Peacock net have secured the services of Mr. Leno by offering him the chance to do something new: namely, distribute his schtick at an earlier time.

Okay, I'll tell you, I think this is a ridiculous idea. On many levels. Let's talk about level one: is this even going to work? Do people want to see Leno at 10 p.m.? Hey, maybe they will. But I get the feeling that this might be too much of a change for people used to seeing Leno at 11:30. Let's go to level two: why does NBC want to program what would essentially be two Tonight Shows? Won't there be some cannibalization going on here? You always hear media companies whining about cannibalization.

Continue reading Should NBC have let Leno go?

Should NBC have let Leno go? originally appeared on BloggingStocks on Wed, 10 Dec 2008 11:20:00 EST. Please see our terms for use of feeds.

General Electric's (NYSE: GE) NBC is really feeling the heat of the recession. NBC Universal CEO Jeff Zucker thinks that reducing the number of primetime hours on the network should be considered a viable option for controlling costs and for adjusting to the current media landscape that seems to favor cable networks over traditional broadcasting entities like Disney's (NYSE: DIS) ABC and CBS (NYSE: CBS). He also speculates that reducing the actual number of days that the network programs may be necessary at some point.

I find all this very amusing. I think what Zucker is essentially saying is that NBC needs to think more like a cable network. I would agree, and have argued for this before. Let's face it, the broadcast networks are dinosaurs in many ways. They just can't compete in a world where cable channels are popular and are constantly repeating cheaply produced shows to keep costs at a sane level. Take Viacom's (NYSE: VIA) MTV as an example. How many times have there been marathons of The Real World? Likewise, if you come in late on an episode of Celebrity Rehab, you know you'll have other opportunities to catch the whole thing at another time. Not only is that time-shifting model convenient, it saves money, too.

This is how NBC should think. Sure, it'd be a culture shock, but what if hits like Heroes and 30 Rock were repeated a few times in a single week? That presents a problem, of course. The talent and production companies behind those shows would demand extra compensation. Well, that's where Zucker should come in. He needs to go to the Hollywood community and tell them that things just aren't working out these days for the network. Zucker has to be staunch and let everyone know what a bind NBC is in and that, for everyone's sake, license fees should better reflect the current reality. The networks have experimented with repeating shows during the week, but not to the extent I'd like to see. I mean, really, does Saturday Night Live only have to be seen on Saturday Night?

Continue reading Is NBC panicking?

Is NBC panicking? originally appeared on BloggingStocks on Tue, 09 Dec 2008 09:35:00 EST. Please see our terms for use of feeds.

Lately, I've been hearing a lot of chatter about General Electric (NYSE: GE) and its NBC Universal asset (here's one example). Specifically, there's been talk about the future of the movie and television business and its role as a productive member of the GE portfolio. There are a lot of pundits out there who would like to see it sold off; probably a lot of investors would like that, too. Thankfully, CEO Jeffrey Immelt isn't one of them; he has consistently and steadfastly denied that NBC Universal will be offered to buyers in the near future. I hope he retains such opinion, because I definitely think GE needs NBC Universal.

Sure, GE needs to sell things from time to time, the latest example being the conglomerate's desire to dump its appliance division (Peter Cohan agreed with this logic and recently wrote a piece about the subject). But it shouldn't get rid of NBC Universal. Ever. Well, maybe there might be some compelling event in the future that would justify a sale, but I really don't see that happening. Why? Because content is valuable, and GE needs to own a piece of it.

We live in exciting times. The media is changing. New distribution paradigms, driven by digital technologies, are forming all the time. Libraries of films and television shows are going to be valuable well into the future. Think about Universal and its film library. The Mummy, Jurassic Park, E.T., The Bourne Ultimatum, Jaws...you get the picture. NBC Universal will be able to monetize all these franchises and many, many more from the library, as well as ones that have yet to be produced, via the new digital economy.

Continue reading General Electric should not sell NBC Universal

General Electric should not sell NBC Universal originally appeared on BloggingStocks on Sat, 24 May 2008 12:40:00 EST. Please see our terms for use of feeds.

GE's problem isn't just Bear - NBC underperforming, too originally appeared on BloggingStocks on Fri, 11 Apr 2008 13:28:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that a New York law firm that was hired to probe into a bribes-for-business scandal at Siemens AG (NYSE: SI) has been hindered by many obstacles including lawyers' missteps and lack of subpoena powers, people familiar said.
• Yahoo! Inc (NASDAQ: YHOO) is expected to reduce its workforce by as much as 5%, according to sources in the company and reported by the Financial Times. The company is reportedly going to lay off some 500-700 of its employees as soon as next Tuesday.

• In an effort to save as much as $50M per year, General Electric Company's (NYSE: GE) NBC Universal head Jeff Zucker said the broadcaster would reduce its reliance on pilot episodes of new series on its NBC television station. Mr. Zucker cited the slowdown in the economy and the Hollywood writers' strike as reasons for cutting costs, adding that "it's clear we are in a recession in the United States," the New York Times reported.

• Real Clear Markets says that Google Inc (NASDAQ: GOOG) would have the most to gain from acquiring The New York Times Company (NYSE: NYT), a company that has declined in value by 70% over the last five years.

Newspaper wrap up: Yahoo expected to reduce workforce by up to 5% originally appeared on BloggingStocks on Wed, 23 Jan 2008 08:40:00 EST. Please see our terms for use of feeds.

NBC Universal Chief Executive Jeff Zucker made it clear at a conference yesterday that GE (NYSE: GE) had no interest in selling the media business. Referring to GE CEO Jeff Immelt, Zucker said, "He has said numerous times that NBCU is not for sale. It is not for sale after the Olympics." Some press reports have indicated that GE would take the big money from the sports event and then dump the business on some sucker.

It is odd that the head of a GE division should have to make this kind of comment at all. The head of the locomotive division probably wouldn't make comments about the future of his business. Meanwhile, NBC Universal can go on operating as usual whether Wall Street thinks it is for sale or not.

The argument for selling NBC is that the unit does not fit with the conglomerate's industrial and financial operations. That is true, but owning a network does mean tickets to the Super Bowl and the Oscars.

NBC is a $15 billion business with operating income running about $2.5 billion, making it a modest part of GE's overall earnings. Still, the business is about the size of CBS (NYSE: CBS), which has a market cap of $21 billion and debt of $7 billion.

For the $28 billion enterprise value of CBS, GE would sell NBC tomorrow.

Douglas A. McIntyre is an editor of 247wallst.com.

NBC is probably not for sale originally appeared on BloggingStocks on Tue, 30 Oct 2007 10:48:00 EST. Please see our terms for use of feeds.

General Electric Co. (NYSE: GE) Chief Executive Jeff Immelt's has given Jeff Zucker plenty of chances to improve NBC Universal. Now, it's time for someone else to run the media conglomerate.

Though NBC's performance is showing signs of improvement, it continues to be one of the laggards in the GE portfolio. Investors are clamoring for the Fairfield, Conn.-based company to spin-off or sell the media conglomerate. NBC prime time ratings are stagnant and still overly dependent on the "Law and Order" franchise. While I am a huge fan of "Scrubs" and "My Name is Earl," I realize that the quirky humor of those sitcoms may not appeal to everyone.

Yesterday, Zucker reshuffled the top management at NBC, ousting programming head Kevin Reilly and replacing him with with Ben Silverman and Mark Graboff. Maybe Zucker thought Reilly, whose contract was recently extended, was working too hard. I'm surprised that Zucker didn't escape the axe himself.

Indeed, anytime a company fills a job that one person did with two or more people, that's a bad sign. It's a recipe for instability and will guarantee turf battles between high-powered executives. However, this does allow Zucker the chance to spread blame around to more people when things go wrong or don't go right fast enough.

GE should replace NBC's Zucker originally appeared on BloggingStocks on Wed, 30 May 2007 12:11:00 EST. Please see our terms for use of feeds.

A new future for NBC originally appeared on BloggingStocks on Mon, 12 Feb 2007 14:06:00 EST. Please see our terms for use of feeds.

Jeff Zucker appears to have won the race to succeed Robert Wright as CEO of General Electric Company's (NYSE: GE) NBC Universal. I'm not sure if this is good for GE shareholders.

Zucker, who famously produced the Today Show and extended Friends's popular run, has seen NBC's ratings stumble to fourth place. Although he has championed some shows that have done well -- such as Sunday Night Football and Heroes -- the reality remains that NBC used to be first and it's not anymore. A few weeks ago, CNNMoney reported that NBC was behind The Walt Disney Company's (NYSE: DIS) ABC and CBS Corporation's (NYSE: CBS) CBS in the Nielsen ratings for the coveted 18 to 49 year old demographic group.

In addition to the weak ratings, NBC's numbers are not too hot either. While its revenues grew 10% to $16.2 billion in 2006, its operating profit fell 6% to $2.9 billion. As a proportion of GE's total, NBC contributed to 10% of GE revenues in 2005 and 2006 during which time NBC's operating income contribution fell from 13% to 11% of GE's total. This performance is not bad, but it's not spectacular either.

Continue reading Is Zucker good for NBC Universal?

Is Zucker good for NBC Universal? originally appeared on BloggingStocks on Mon, 05 Feb 2007 12:51:00 EST. Please see our terms for use of feeds.