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Oct19
NBC Universal Going Through Major Overhaul

NBC Universal, in a major overhaul, plans on cutting back on scripted dramas and comedies and focus on reality and game shows which are much less costly to produce, the Wall Street Journal reported.

In another move they are shifting a lot more resources to Internet; around $150 million over the next two years. The Journal adds that revenue by 2009 could reach over $1 billion for the company.

In reference to their idea of cutting back on dramas and comedies to save money, that makes sense from a cost perspective, but from an Online strategy perspective, it has some problems.

Wendy Davis writing for Just an Online Minute says:

nbc universal.jpg"...the network should keep in mind that fans don't appear all that interested in going online to read about or view TV reality shows. This morning, Lycos put out a list of the 10 most searched prime-time TV shows for the week ending Oct. 14. Eight were scripted; the only non-fictional shows to crack the top 10 were "Dancing with the Stars" and "Survivor."

This goes along with recent information that DVRs aren't near as detrimental to quality programs as previously thought; as a matter of fact they help to grow audience share. On the other hand, live events and reality shows are having an impact from DVRs. Why? Nobody wants to record an already completed event and watch it the next day.

The reason is because these types of things are viral and are talked about everywhere by people. You know what's happened before you could ever sit down and watch it.

This is the same with the Internet. Once everyone knows what's happened, the great majority of people aren't going to go online to download or stream it for the very same reason they won't TiVo it.

It could be a major influence on NBC Universal's Internet strategy when they find out people don't have a strong desire to watch last nights' live and reality events the next day online.


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