• by David Goetzl  @dgoetzl, February 9, 2007

NBC Universal is aggressively expanding its offerings and ad sales on digital platforms, but the move doesn't impact its traditional bread-and-butter outlets, says a top executive. And that includes both its flagship network and somewhat surprisingly, its 25 local stations, which are part of a business segment with a cloudy future.

"The TV model is fine--we're not worried about that," said George Kliavkoff, chief digital officer, speaking at a New York media event this week.

Kliavkoff echoed what NBCU officials have said about the NBC network. Online viewing of its shows--both via NBC.com and iTunes--does not cannibalize viewership of the linear broadcasts. In fact, they often serve as a promotional tool, since satisfied customers will tune in on NBC live.

Linking NBC with its network cohorts is just smart business. "All of our research departments say folks who watch TV online are more likely to go watch on television ... for us, it's all additive." Kliavkoff added.

NBC has found another way to boost ratings (and revenues) via a new platform.

For its game show "Deal or No Deal," viewers can enter a contest via text messaging in which a winner is revealed "live" near the end of the show. NBC gets a cut of the 99 cents per message charge--and garners ratings jumps as viewers stick around until the winner is revealed.

"Everyone who text-messages in the first 10 minutes of the show stays to the end of the show," he said.

Good news for NBC: as many as 1.5 million text messages have been sent during a single episode.

Commenting on the viability of NBCU's owned-and-operated local stations--10 with NBC and 15 others for Telemundo--he said some $40 billion a year is spent on local ads in newspapers. The stations have a prime opportunity to grab share by convincing marketers to "take some advertising money and reapply it to local stations."

Much of stations' growth would come via their Web sites, with both ad-supported video content and the development of robust local paid search engines.

A new survey from the Television Bureau of Advertising shows while station sites are gaining some share, they still own only 7% of the local online ad market, versus 36% for newspaper sites.

The future of the local station business has been called into question, since so much revenue is derived from newscasts, and consumers are increasingly turning to the Web for news, often hours before the newscasts.

On the multi-platform theme, Kliavkoff hinted that NBC could scoop the pool. The net would take advantage of new revenue streams from companies like TiVo and Apple that will allow consumers to purchase TV shows online, then watch them on their TVs. If the TV ratings hold, NBC profits on all fronts.

Kliavkoff believes consumers will pay for convenience and the opportunity to purchase show episodes and easily shift them to a preferred platform on a particular day.

In the digital age, he echoed the standard media cry--find new ways to distribute content, such as the Web, wireless and game consoles. Again reiterating a popular programming theme, he said TV and film content will not succeed if it's simply streamed new avenue in existing form. Instead, it must be tailored to each outlet.

NBC has a studio set up to develop original content for the new areas.

Also, like most major media companies, NBC, an early investor in TiVo, is on the prowl to invest in/buy the next YouTube. NBCU and corporate sibling GE Capital have formed a digital-investment fund.