GE and Vivendi Reach Deal About NBCU

Just wanted to write a quick post to let everyone know that GE and Vivendi have reached a deal for Vivendi to get 5.8 billion for its 20% stake in NBCU. This is really setting the stage for the Comcast-GE deal which will give the cable distributor a 51% stake in NBCU. Variety is reporting that the Comcast-GE deal could be announce by the end of this week at the earliest, though it may take up to a year for the deal to move through all the regulatory issues.

CBS Yanks 'Three Rivers'

The latest casualty of the fall 09 television was announced this morning as CBS yanked medical drama 'Three Rivers' off the air effective immediately. The 9 PM time slot on Sundays will be filled by repeats of crime procedurals beginning this week. This news is no surprise (the show's not very good) and the show's lead actor, Alex O'Loughlin, failed to attract his 'Moonlight' fans and create a stable fan base.

Even though 'Three Rivers' tanked in the ratings, CBS has had a very strong line-up among 25-54 year olds and overall viewers, particularly with freshman drama 'NCIS: L.A.'. The extra hour gives the Eye network the opportunity to launch one of its midseason shows in a stable time-slot or adjust it's line-up for the spring. Either way, this news by no means spells trouble for the network.

NBC's Zucker - "Whatever It Takes To Put On The Best TV"

At a Paley Center Event last week NBC CEO Jeff Zucker sat down for a Q & A with CNBC's Erin Burnett. One of first subject that Burnett brought up was the impending takeover by Comcast. Zucker stated that Comcast was assessing the strength of their assets and that over 75 percent of NBCU's profits come from its cable networks. This certainly isn't surprising considering the state of the NBC's broadcast shows over the past few years; however, it's still a shockingly high number that doesn't bode well for broadcast television.

When asked about The Jay Leno Show, Zucker attempted to stress that they're doing "whatever it takes to put on the best television...[and] quality content wins out". It seems to me that Zucker is just trying to cover up his previous statements to the press that put the emphasis on how cheap Leno's show is to produced rather than that it's quality television.

Zucker also confirmed that NBC is interested in FOX's push for retransmission fees, but that he expects it to be three or four years before that would become a viable business model. This is a step in the right direction, but the retransmission fees wouldn't be so important if NBC was able to actually produce shows that people want to watch. Even Zucker echoed that sentiment at the end of the Q &A when he said that "we've probably gotta do a better job... at being smarter" in primetime.

Execs Convene to Discuss Online Television

On Tuesday, NBC's Marc Graboff, CBS' Nancy Tellum, Warner Bros. Bruce Rosenblum, and the WGA's John Wells met at a B & C event to discuss streaming television for free online and the effect it's having on the industry. All of the panelists agreed that now is a crucial time for the television industry, and that they are responsible for finding a way to stop cord cutting. However, at the event none of them seemed to be able to provide any solutions.

Another topic that came up is DVR and the affect its had thus far. According to Graboff "none of us is getting compensated for time-shifting on DVRs...[and] it's a huge leak in the bucket". While DVR has had a negative financial effect on the broadcast industry, it is much less of a problem currently than everyone predicted. What the execs need to focus on is online television. This forum was a step in the right direction but I think that television executives need to start meeting more because the only way they are going to hash out a long term business model for the television industry is by coming together to address industry problems.

NYMag Takes a Hit at Leno, Zucker, and NBC

Last week New York Magazine printed a pretty scathing article on NBC, entitled "Why NBC Deserves Better Than Leno". The article is focused on what it considers to be the network's biggest problems, Leno, Jeff Zucker, and potentially Comcast. Rather than give you a synopsis I'm just going to post a few of my favorite quotes, because honestly, NYMag pretty much hit the nail on the head.

On why it's clear NBC is in trouble: It’s easy to enumerate how dire things are for the network: The fourth-place finishes, night after night, in both total viewers and the 18-to-49-year-old demographic that still serves as TV’s gold standard. The absence—for the third year running—of any new hit show.

This is about a company that has lately seemed to hold in contempt the very idea of a broadcast network, and that has become a symbol of the death of ambition in an industry that, in its glory days, attempted to program for both mass and class. Without that goal, a network is nothing but a basic-cable channel with a gloomier business plan and an uglier balance sheet.

On Jeff Zucker: If you don’t really believe in network television as a workable model anymore, why run a network? Broadcast TV, even in an age of infinite options, is still an institution with heft and force, but Zucker has often behaved like the grudging caretaker of a dying giant. His spin on falling numbers? The whole system is broken!

On Leno and the NBC brand: The face of the network, by virtue of sheer omnipresence, is Jay Leno, who, at 59, is not any network’s demographic ideal. He may not be killing NBC, as TV Guide recently speculated, but it’s beginning to feel like he’s participating in an assisted suicide. One thing’s already clear: Remaking an entire prime-time lineup in his familiarly peevish image was a Hail Mary pass, not a long-term business strategy. And one suspects the network knows it.

Zucker Will Keep Job In Comcast-NBCU Deal

Reuters is reporting that NBCU CEO Jeff Zucker is to be made the head of the impending NBCU-Comcast merger. According to the deal, Zucker would lead the new company, without a clause that requires him to exit after a specific period of time.

But I've got to ask, is this really what's best for NBCU? Under Zucker's reign the Peacock network has taken a huge hit, creatively and financially. While it's true that NBCU's cable channels are the crown jewels of the company, the broadcast network is responsible for carrying the reputation of the brand name. In the past few years, NBC has become the punching bag of the television industry, and the seemingly inevitable transfer of ownership is the perfect excuse to shift the leadership and try to reclaim NBC's place atop the broadcast network dog-pile.

I have no problems with Zucker himself, but there's no denying that NBC has suffered the past few years. It's time to introduce some new faces into the company's leadership roles, who may provide exactly the fresh perspective and innovative ideas that NBC needs to dig itself out of this hole it's in.

'Dollhouse' Axed, No One Surprised

EW's Michael Ausiello is reporting that Dollhouse will end after its 13 episode run this fall. Even diehard Joss Whedon fans, like myself, aren't surprised that FOX has finally pulled the plug on the ratings-challenged drama that really hit its stride creatively in its second season. The show barely averaged 3 million viewers on a Friday night death slot and lost about 25% of its first season audience this fall. After FOX pulled 'Dollhouse' from its November sweeps schedule most people considered that to be the final nail in the show's coffin. This announcement seems like a mere formality.

To FOX's credit, they stuck with 'Dollhouse' a lot longer than most other networks would have. Even giving the show a second season was a huge leap of faith that show would be able to find a larger audience over the summer hiatus. That said, FOX certainly could have done a lot more to promote the show. They stuck it on a night where viewers are scarce to begin with and then barely advertised for the show, expecting viewers to magically tune in. Unfortunately, 'Dollhouse' was a show perfect for a cable network, like SyFy, and it really couldn't sustain itself in a broadcast model (Eliza Dushku, the female lead, had a development deal with FOX so the show had to be pitched to them first). Hopefully, Joss Whedon will think twice about bringing his ideas to a broadcast network in the future.

Leno Ratings Hit New Low

Last night Leno's show hit a 1.2 rating among 18-49 year olds with almost 4 million viewers, a new low for the comedian. NBC claimed early on that The Jay Leno show would only need to receive a 1.5 rating for it to be financially successful, which for most prime time shows is an easily achievable feat. According to the NYTimes, The Jay Leno Show is stronger among male viewers, so the combination of post-season baseball and Monday Night Football has really taken a toll on Leno's ratings.

While I'm sure that sports have had a negative impact on Leno's ratings, that still doesn't excuse the fact that on a daily basis the viewing audience continues to send a message to NBC that they aren't interested in watching a late-night talk show during prime time. It remains to be seen how the poor lead-in is financially affecting affiliates; however, there is a clear correlation between the poor 10 o'clock ratings and the slipping ratings for Conan O'Brien and Jimmy Fallon. No one is interested in watching 3 hours of talk shows per night. NBC needs to put their pride aside and realize that their experiment isn't working and attempt to salvage what's left of their prime time line-up.

NBCU Valued at 30 Billion

Today, GE and Comcast moved one step closer to a deal that would give Comcast 51% ownership in NBCU. The two companies have agreed on a 30 billion dollar valuation for the majority share of NBCU; however, there are still plenty of things that could put a stop to the deal. Most importantly, Vivendi has yet to announce that it is exercising its option to sell its 20% stake in NBCU (they have until the first full week in December to make this announcement). Assuming Vivendi decides to sell, anti-trust claims from the FCC could also stop Comcast's plan to own NBCU. More news should follow this announcement in the coming weeks as Comcast and GE move closer to finalizing the deal.

FOX is Most Improved Network

According to data analyzed by tvbythenumbers.com, FOX is this year's most improved network. FOX is up in the key demos, 18-49 and 18-34, versus last year, while both NBC and ABC have had almost identical ratings drops. CBS is still holding strong with its core of 25-54 year olds; however, it was been lost the lead to FOX, which normally only becomes the ratings leader in the spring with its powerhouse, American Idol. TVBytheNumbers has created some very pretty, and useful, charts that I recommend you check out here.

I think these statistics are, for the most part, a reflection of the quality of each network's fall lineup. This season FOX has some of the best and most buzzed about scripted shows on television (House, Glee, Fringe, etc.), and it's nice to see its ratings reflect that. Of course, that isn't always the case; CBS is a ratings powerhouse and it fills its lineup with about 5 of the exact same show with different titles (CSI and NCIS franchises I'm looking at you). It'll be interesting to see if FOX continue their momentum and hold their high ratings until juggernaut, American Idol, returns in the spring.

TNT Officially Picks Up 'Southland'

TNT announced this morning that it picked up 'Southland', the cop drama that NBC unceremoniously dropped from its line-up last month. The cable network plans to begin airing the first season of 'Southland' in January at 10 PM on Tuesdays facing off against the NBC show that brought about its premature demise, 'The Jay Leno Show'.

The TNT pick-up is only for the 13 episodes that the show has already produced. Depending on its Tuesday night ratings in January the network will make a decision on whether or not to order additional episodes. I think this is a great move for TNT because a solid cop drama fits right in with their other programming, and if they do decide to order additional episodes it will save them a bit of money because the sets are already built. It'll be interesting to see whether or not TNT will be more willing to give the show the time to grow and find an audience than NBC was.

Jay Leno Talks TV

Jay Leno gave an exclusive interview to Broadcasting & Cable, in which he talked about moving to 10 PM, the negative press coverage, and his relationship with the NBC affiliates. Here are a few snippets of the interview that I think are the most interesting/relevant to the media coverage surrounding The Jay Leno Show:

About the negative press: "This is our toughest period; we are the complete flip side of regular TV. Sweeps we'll do the worst, non-sweeps we'll do the best. When people realize that reruns are on for an extended period of time, we'll see how we do and how we pick up."

About NBC's support: "No, they are standing behind it, they're fine. They are treating me well. I think they are giving us all the support they can. Lead-ins are important. On the nights when we have a strong lead-in, we are competitive; on the nights we don't, it's up to us to try and carry the ball ourselves….I think people like a fighter. And if you just keep swinging, eventually people are going to get tired of hitting you. They're going to say, “We've been beating this guy up for six months, let's move on.” That's sort of the way I look at it."

About the NBC affiliates: "I called a bunch of them last week. Unless they are the greatest actors in the world, they seem to be hanging in there and say they are in it for the long haul. I called Baltimore, Boston, the head of the affiliate board. They don't see it as dire as a lot of people are making it out to be….I think they seemed pleased that someone on at 10 o'clock is concerned about their well-being and their lead-in."