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NBC vs. CBS: Opposite Views of the Future

NBC and CBS are at odds about how best to proceed at a time when the future of their business is under serious assault. Is the future of broadcast TV generating big audiences from early morning to late at night? Or is it picking the right spots, focusing across a multitude of screens in exchange for advertising and other revenue. "The two networks are definitely on the opposite ends of the spectrum," says Wachovia analyst Marci Ryvicker.

NBC Universal plays up the importance the company's broader cable assets, warning that the broadcast medium faces wrenching technological change. CBS insists that shows that generate big ratings are the only thing that will help broadcast TV maintain its edge over alternatives that attract smaller, enthusiastic niches.

Soothsayers project two possible outcomes. In one, networks see more opportunity in distributing programs through digital means and get out of certain dayparts, such as early-evening newscasts or even prime-time dramas. In that situation, NBC has an advantage. The other vision sees ongoing demand for big, broad audiences. Consumers will want free TV they can rely on for high-quality programs, even if the living-room screen is hooked up to the web. In that scenario, CBS has the edge.

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