Posts for 'NBCU'

Jeff Zucker, NBCU's president and CEO gave a stirring, candid keynote at the NATPE show yesterday, in which he essentially said that all the rules that the broadcast TV industry has lived by for six decades have now changed. It was a pretty blunt assessment, given in terms not often heard from PR-cautious CEOs.

I thought Zucker nailed it on the head when he said that "technology is transforming every part of our business," suggesting that to succeed in the future the company must re-engineer itself from top to bottom. The technology drivers - DVRs, broadband distribution, VOD, mobile and inexpensive production equipment are all leading to fundamental changes in distribution, advertising sales, marketing and content development.

Zucker said that the "historic economic model supporting broadcast TV is wounded." This is well exemplified in the broadband space, where networks have eagerly pushed their hit programs online. Yet in referring to its broadband initiatives, Zucker acknowledged, "Our challenge with all these ventures is to effectively monetize them so that we do not end up trading analog dollars for digital pennies," noting "This is the Number 1 challenge for everyone in this industry today."

I believe many of the steps Zucker's taking will help surmount this challenge. They include: Improving the allocation of resources and efficiency of the pilot process to help NBC maximize the opportunity that the mass-scale broadcast business still provides. Expanding the marketing of its programs beyond traditional influencers to help tap into the water coolers of the digital age. Broadening the role of its stations encompassing all local media opportunities instead of just selling TV ad space to enhance their competitiveness. Setting up digital studios to produce content geared for the broadband and mobile to tap new audiences.

Listening to Zucker, I felt myself being optimistic about his leadership and the likelihood that his game plan will ultimately lead to a successful transformation of the business. It won't come without plenty of bumps in the road, but it did strike me as clear-headed thinking which was sensitive to the network's traditions, but not obsequious to them. Throughout his keynote, he repeatedly reminded the audience that great storytelling and content is what all matters. The story of how NBC and the other networks will learn to succeed in the broadband era is definitely one worth following.

OK, one last post related to CES, and then I promise to shut up about the show.

Observing the goings-on this week, it is evident that both content and consumer electronics firms have come to the same basic conclusion: each industry's success is inextricably tied to the other's. Each recognizes that the business dynamics of the future requires a new way of differentiating their products than they are accustomed. That means, for example, that TV makers can no longer just boast about better pictures. And that content companies can no longer bank on bigger stars or funnier sitcoms to deliver audiences and profits.

Rather, both industries recognize that we are moving into what I would call the "experience era" for video. That's to say, success with consumers is going to rest more on these industries' ability to deliver superior experiences which integrate content and technology in new and compelling ways. Rather than oohing and ahhing about their new TV's picture quality or how hilarious a certain episode was, going forward consumers will increasingly cite "how cool" something is.

"How cool" are code words for "how compelling is the experience". The new currency of video hipness will require that when I invite friends to my house and want to show off, I need to have more than just a honking-big screen or a digital collection of old programs - those will be commonplace. Instead, the experiences are what will matter. Things like seamlessly accessing broadband content on my TV, interacting with it -- along with other viewers -- from my couch, and moving it around my house for playback anywhere, in a snap. Delivering these types of experiences (and more) is the new competitive bar that content and technology firms should be aiming for.

My sense is these industry executives know this, and the partnerships we saw unveiled -- and those yet to come -- demonstrate this recognition. Listen to what Bob Scaglione, Sharp's SVP Marketing said in this NY Times piece: "We already all have beautiful HD televisions. How do you differentiate? One way to provide some really unique differentiation is to provide new content. That's why we're fighting to find the right content providers."

And then what Beth Comstock, president of NBC Universal Integrated Media said: "You can't talk about consumer electronics without talking about content.....We try every new technology that comes along."