I am at NATPE, at the Mandalay Bay, listening in to Jeff Zucker, CEO of NBC Universal (NYSE: GE), who is striking a mixed note of pessimism and optimism.
— The work stoppage is the most visible sign of disruption..the replacements are not necessarily ready for primetime. The breakdown of talks between WGA and AMPTP is the catalyst we needed. This is our industry’s version of a forest fire….it may very well leave behind fertile soil, clear ground and give opportunity for growth.
— We need to change the cost structures in the industry…we are convinced we can provide long term growth in broadcast TV if we can do business differently. First, how we develop programs..this is not about less scripted programming, this is about how we get there. Last year some 80 pilots were made and about 8 were greenlighted and none were a success. What has making pilots gotten us? Why not make fewer pilots, and order series straight to air, like reality shows of how it happens in UK. It is about making less waste. More in extended entry…
— The upfronts for us will not change, but do we really need the big tour? I am not sure…we are close to a decision. It won’t be traditional, for sure.
— As a business man I am not happy about whole generation of employees watching video on their lunch, but as a video guy, I love it. Consumer wears the crown…”Content is king” has been rewritten. Trading analog dollars for digital pennies…that is the biggest challenge we have.
— We need new regulatory framework to work in 2008, not 1948. In Washington, lawmakers need to put together a comprehensive communications policy. There are so many more competitors in the marketplace today that weren’t there when the laws were written. The rules have not been redeveloped.
— Relationship between NBCU and affiliate stations: Anything we do to exploit our programs on multiple platforms impact our owned affiliates more than anybody (it covers 25 percent of the nation). The key for us to strengthen the local network partnership…our local TV stations cannot just be in the business of selling advertising on TV; Olympics and elections will cover some of that. But we have to be prepared for 2009…there are so many other local competitors.
— There is so much great content being produced on an independent basis and we have to do a better job of finding it. I am not sure we are doing a good job yet…it is not a surprise people are going to elsewhere to fund their entertainment.
— International: It is both exporting our programs, and new film/TV studio that are going to program in local markets. Europe is both mature and expensive. In India, in 3-4 years, if we play it right, we may have $400 million in revenues, from the current $4 million…we just announced the deal to buy 26 percent stake in NDTV there.
— Future of NBCU: As things have improved at NBCU in the last few months, the sale questions have gone away. If we don’t perform, then GE should sell us…but it is about performance. Frankly, GE has invested a tremendous amount of money in NBCU in the last 6-8 months and that shows commitment.
Come attend our Q&A with Peter Levinsohn, President of Fox Interactive at NATPE, followed by our mixer: Jan 30th, 5:30 to 7:00 PM in Ballroom F. Details here.
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