General Electric has been singing the same song for a year: NBC's reversal of fortune. "NBC Universal is rebounding," said CEO Jeff Immelt in a familiar refrain. "The turnaround continues," echoed CFO Keith Sherin on a conference call Friday with investors to discuss recent performance. But where's the proof? In the same call, executives said revenues in the current first quarter of 2007 would be essentially flat. Actually, they projected a 20% decline--largely due to comparisons versus a year ago, which included the Winter Olympics. Profits were projected between flat and up 5%. But the Winter Olympics hardly performed strongly for NBCU, which said it lost $70 million on the games. The loss may have contributed to a 6% drop in profits for NBCU last year, although revenue increased 10% to $16.2 billion. The NBCU division, despite notable profit growth in the entertainment cable sector with networks such as USA and Bravo, also lumbered along in the just-completed fourth quarter. For the last three months of 2006, the NBCU unit posted only a 1% revenue increase to $4.2 billion, although profits were up 5% to $841 million. The slow growth came despite NBC adding "Sunday Night Football"--which had strong ratings, but also carries a huge rights fee that can drag down profits. But executives continued to be bullish going forward. "We love 'Heroes,'" Sherin said, referring to NBC's desperately needed prime-time hit, which has fueled optimism that the network can regain its footing. "Heroes" is a top-five hit in the key adult 18-to-49 demo. And NBC is up approximately 16% in that key demo this season--although with football over, its margin could drop.
Sometimes fate serves up more publicity than advertisers expect. Last Wednesday, a freak gust of wind loosed a barrage of field-side billboards on competing soccer teams in the Ellis Park stadium in Johannesburg, South Africa. By Sunday, the surreal footage of rectangular billboards floating over confused soccer players from the Orlando Pirates and the Black Leopards was on American broadcast TV--and, of course, YouTube too. Around the world, users from South Africa, Hong Kong and Australia also posted clips from broadcast TV news on YouTube. The clip is perfect for YouTube: the TV cameras were perfectly positioned to capture not only the soccer game but the weird aerial ballet that began about five minutes after kickoff. In 30 seconds, the short clip delivers novelty and unexpected visual beauty. There's also comedy as the players, expertly dodging and weaving, suddenly realize the game just got far more complex--but continue playing anyway. By Sunday one YouTube posting by "fabregasfan" had attracted over 141,000 views. It should be noted that two players and a referee were injured during the event--none seriously. However, the players and referee returned to the field, and play resumed for an additional two minutes before the match was cancelled due to lightning. Soccer fans were also quick to point out that the injured players may well have been faking. So the athletes emerged mostly unscathed--but what about the advertisers? Does a jerry-rigged billboard flying across the playing field hurt a brand's image? Or is the event so bizarre that viewers won't even make the connection? The brands on several billboards are clearly visible, including Metropolitan Holdings Limited, a leading African life insurance and financial services company, and Vodacom, one of Africa's biggest cellular carriers. In the background of the clip, still attached to their moorings, are other brands that could just as easily have taken flight, like Panasonic and Castle Lager, a popular beer. Also up for grabs (though not in flight) is South Africa's future as a world-class soccer arena: the Ellis Park venue is on the short list for the 2010 World Cup. Various viewer comments on YouTube may throw fuel on the fire of advertiser paranoia: one YouTube user, Staszu, remarked: "This is SCARY. I guess it's nature's way of saying, 'We don't want adverts on the touchline!'" Another user, rwsmith29456, made the safety argument: "What an awful thing to have happen. Who tied down those signs anyway?" And Tagmus2000 added, "not sure S.A should host the world cup." But for now, the last word has to go to Australia's Channel 10 Sports News anchor, who ventured: "The sponsors will be happy their logos are getting shown right around the world. The players? Well, no one was seriously injured, so in light of their evasive action... they can have our 'play of the day'!"
PASADENA, CALIF.--Somewhat late to the Internet programming party, the CW announced that it is streaming seven of its shows, including "Veronica Mars" and "One Tree Hill," on www.cwtv.com. But it says it surpasses other networks in new digital arenas. Dawn Ostroff, president of entertainment for The CW, says that the rush of starting the network meant that it has only now begun streaming its shows--long after most other networks. The CW took an incredibly short time to launch--just nine months--she added. It needed that time to work on getting viewers to switch from UPN and WB, the predecessors of the CW. The CW required a major marketing effort to communicate to some 67% of UPN viewers and 28% of WB viewers that they had to switch to another station. Other shows that are being streamed include "Beauty & The Geek," "Everybody Hates Chris," "Girlfriends," "All of Us" and "Supernatural." In new digital areas, where its 18-34 viewers can be found, The CW says it's far ahead of other networks. For instance, CW and CBS Interactive said they would launch the first avatar-based game for mobile phones tied to a major TV show, "America's Next Top Model." The game allows an avatar--a computer-generated model--to exist on mobile phones. Users can manipulate the avatar, adding different dresses, hairstyles, etc. CW and CBS Interactive struck the deal with a Hong Kong-based company called Artificial Life; it's the first of several to be developed for the network. In addition, Rick Haskins, executive vice president of marketing and strategy for the CW, says that at the cwlab area on its www.cwtv.com site, users have produced and uploaded some 20,000 promotional videos. CW Web site users also sent some 500 videos to the net for a contest in which they explain why an episode of "One Tree Hill" should be shot in their hometown. During last year's upfront, CW made a point of saying it would produce "content wraps"--three- to-six-minute mini-programs--for advertisers. Bill Morningstar, executive vice president of ad sales for the CW, says the wraps have had excellent results, with each one commanding 100% viewer retention rates. Procter & Gamble's Herbal Essence aired a content wrap during the Sept. 20 season premiere of "America's Next Top Model." Online video game "Guitar Hero" made an appearance during a "Veronica Mars" episode last fall. Regarding its upcoming series, CW announced that "Pussycat Dolls: The Search for The Next Doll" will take the "Veronica Mars" time slot for eight weeks starting on March 6. The network's highest-rated show, "America's Next Top Model," will air its eighth edition starting Feb. 28. The CW also said it will add to its reality slate of shows with "Crowned," where mother-daughter teams will compete to win a beauty contest.
PASADENA, CALIF.--Fox is shifting gears mid-season and launching three new scripted shows. "We are doing something different," announced Peter Liguori, president of Fox Entertainment, at TCA. "In the past, we dabbled in reality fare. The goal is to see what may work in the fall. What we say here is: Spring is a new fall." The new shows are a mix of genres. They include: "The Wedding Bells," a David E. Kelley-produced comedy-drama about a family-owned wedding business. It gets the benefit of an "American Idol" lead-in Wednesday on March 7, then settles into a Friday time slot at 9 p.m., starting March 9. Liguori thinks this might work, considering that the other networks run mostly procedural crime dramas at that time. "Drive," an action drama, focuses on a group of people in a cross-country road race. This serialized series gets a two-hour premiere Sunday, April 15, and starts in its regular time slot on April 16, Mondays at 8 p.m. Fox will also try a straight comedy, "The Winner," about a 32-year-old who leads a sheltered life with his parents. It begins on Sundays--in an unusual limited double run that night--at 8:30 p.m. and 9:30 p.m. Fox hasn't made any plans yet for the highly competitive Thursday night. Fox is ending "The O.C." in February and moving "'Til Death" to Wednesdays after "Idol," starting on March 14. "We have the potential for looking at a comedy block," said Liguori. "It's a tough night. You have 45 share points eaten up by two shows [ABC's 'Grey's Anatomy' and CBS' 'CSI: Crime Scene Investigation.']." As for last fall's double-digit rating drop, Liguori says, "I don't accept that's the way it is. We have to have better shows in the fourth quarter." He believes Fox might gain an advantage next season, now that Fox's baseball efforts have been cut back. "We now have two rounds of playoffs instead of three," said Liguori. "We had 26 possible games now down to 14. That gives us some flexibility." Liguori also addressed possible Federal Communications Commission concerns over indecency sanctions. "Because there are no specific definitions, there is a chilling effect," he warned. The FCC recently levied sanctions against Fox over the use of profanity by Cher and Nicole Ritchie during two separate Fox Billboard Awards telecasts. The FCC did the same in 2004, over an NBC Golden Globes live telecast featuring Bono when he used the "F-word." Fox will air live the "38th NAACP Image Awards" on March 2 in which Bono will receive the NAACP chairman's awards. Is Liguori worried? "We have every anticipation Bono will be spectacular." Liguori added that the upcoming "Simpsons" theatrical movie--its first--will help bring new viewers to the franchise, now in its 18th season. He also defended News Corp.'s decision to sell DVDs of this season's "24" debut 24 hours after its TV premiere. "The show does unbelievably well in DVD. It drives a lot of traffic to the stores."
Turn up your dial. A U.S. district judge has allowed a major lawsuit brought by the recording industry against XM Satellite Radio to proceed. Judge Deborah A. Batts refused to toss out the case, ruling that the music companies' claims merit a hearing. The lawsuit brought by the Recording Industry Association of America (RIAA) seeks $150,000 from XM for songs downloaded by subscribers using the Pioneer Inno, a combination XM radio and MP3 player that enables users to record songs and play them later. RIAA says the device violates copyright protections. XM says the allegations are baseless because the device is protected by the Audio Home Recording Act passed in 1992. XM's lawyers argued that the player is no different from combination radio-cassette players that were widely used to record songs from radio airplay. But Judge Batts dismissed this claim: "It is manifestly apparent that the use of a radio-cassette player to record songs played over free radio does not threaten the market for copyrighted works as does the use of a recorder which stores songs from private radio broadcasts on a subscription-fee basis." While XM only pays for the right to broadcast music, the storage and playback capabilities of its player make it a de facto music distributor as well, Batts said. After the setback, XM issued a statement reiterating its legal points and expressing confidence that it will prevail in a court case: "At this stage of the proceeding, the court's ruling is required to be based on the false characterizations set forth in the plaintiffs' complaint. The real facts strongly support our view that the lawsuit is barred by the Audio Home Recording Act. We look forward to making our case in court." In a May interview, Fred von Lohmann, an attorney at the Electronic Frontier Foundation who practices digital copyright law, described the RIAA lawsuit as "a stretch." He thinks AHRA will ultimately protect XM: "The Audio Home Recording Act--which the lawsuit conspicuously fails to mention--gives XM and Sirius a pretty good defense. As far as I know, every one of these devices was designed to conform to the AHRA." The lawsuit against XM came on the heels of threats of similar legal action against Sirius Satellite over its S50 player. This conflict was resolved in March by a deal between Sirius and four leading recording companies, in which Sirius paid them an undisclosed sum for each S50 device sold.
A promotional event for the new season of the Spike network show "Pros vs. Joes" will let media agency executives determine which category they fall into. The event, created in part by the Carat Brand Experience unit of the eponymous agency, will take place at New York's Grand Central Station on Jan. 24. First, Spike wants to drive tune-in among the general public by providing "Joes," selected via an ESPN radio promotion, to compete against pros, or former pros--in this case, ex-NFL standouts Andre Rison and Kordell Stewart. Those "Joes" will try to prevent ex-quarterback Stewart from completing a pass to one-time wideout Rison. Next up are the buyers and planners. Each agency will choose one representative, presumably with a strong arm and considerable speed. The would-be "pros" will participate in a series of skill competitions. The event-marketing initiative also includes a clinic conducted by Rison and Stewart and autograph signings. The event takes place a day before the second season of the reality "Pros vs. Joes" debuts, 10 p.m. Jan. 25. Rison and Stewart will also be on the show, challenging regular guys--as will a slew of other athletes with impressive credentials, such as John Starks, Tim Hardaway and Darryl Strawberry. With Jerry Rice and Emmitt Smith on ABC's "Dancing with the Stars," reality TV is providing some former athletes with a new venue to showcase their skills.
Comcast-owned Versus network is the latest to add martial arts battles to its programming menu. The network, formerly OLN, will offer World Extreme Cagefighting (WEC) this summer. Versus will televise three live fights and six one-hour highlight shows. WEC has been around since 2001. WEC is owned by the same company that operates the Ultimate Fighting Championship. Is mixed martial arts fighting the new reality TV--in other words, a genre that networks are rushing to offer? Last week, the struggling MyNetworkTV said it would offer the fledgling International Fight League. Spike already carries UFC. Showtime is set to begin offering Elite Xtreme Combat on Feb. 10. And gambling site Bodog.com says it has a deal to bring martial arts competition to an unnamed broadcast network. Mixed martial arts can be brutal, as it includes moves from boxing, wrestling, kickboxing and other fighting all at once. Hands, feet, knees and elbows can all be used, depending on the league.