DENTON (UNT), Texas -- The chair of the department of radio, television, and film at the University of North Texas says NBC Universal's decision to save $750 million by cutting jobs and relying more on unscripted television shows for programming shows how tough it is to make a profit running a TV network. Dr. Alan Albarran says the growing fragmentation of audiences, and the changing economics of network television, are forcing the networks to look closely at ways they can trim expenses and become more efficient. "In the case of NBC Universal; there are considerable savings the company can make in the area of news, as it has maintained separate news bureaus for NBC Nightly News, MSNBC, CNBC, and Telemundo," Albarran says. "The company will move to ‘hub' these news operations, and while it will mean a loss of some employees, in reality it probably won't impact what viewers see." NBC Universal is planning to cut 750 jobs throughout the company as part of the broader effort to save $750 million by the end of 2008. The company's operating profit has dropped 10 percent in each of the past three quarters. NBC's fall from first to fourth place in prime-time TV has in part driven the slump. But Albarran says NBC's decision on prime-time programming--to rely more on game shows, news magazines and unscripted "reality" programming during the first hour of "prime time" evening viewing--is much more revealing. "Traditionally, the first hour of prime-time has been critical to network strategy. By eliminating high-cost programs in this first hour, such as dramas or situation comedies, the network will have to focus on game shows like "Deal or no Deal," reality programs (which NBC has a mediocre record of achievement) and possibly news magazines," he says. Albarran does not think, however, that this will ultimately impact television producers as they "pitch" their shows to NBC. "Obviously it cuts out seven hours of programming a week, so that can be interpreted as less inventory being available for shows," he says. "But, in reality, they are not doing things that are that much different from the other networks." Albarran points out that NBC's broadcast competitors have scored sizable audience hits with reality shows like "Survivor" on CBS, "Dancing with the Stars" on ABC, and "American Idol" on Fox. Albarran can be reached via his office, (940) 565-2537, or on his cell phone, (972) 989-7513. |
