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Dennis O'Brien

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Lessons From NBC's Train Wreck

Posted: 01/13/10 11:31 AM ET

Watching NBC implode must be great fun to Jeff Immelt and his colleagues at GE. Probably not so much fun for Brian Roberts and Comcast. I know the deal was about long-term strategy for both companies, but I'm sure a small ancillary benefit for Immelt and Co. was the satisfaction that, as they looked up from signing the contracts with Comcast, they saw the inevitable train wreck about to occur at NBC primetime (the train was powered by a GE engine ... but that's someone else's problem now)!

But to misquote Shakespeare, I come to praise NBC, not bury them. Now, I will not defend the majority of NBC's actions. The mismanagement of Jay Leno and Conan O'Brien (no relation, which should be obvious by his height and, some might say, talent) is of Olympian proportions. Come to think of it, it makes NBC's expected $100+ million loss on the Winter Olympics look like a molehill. They've alienated Conan to such an extent that he has announced he will not move to 12:05, but would rather leave his network home, where he's been for 17 years.

I'd argue that Conan should have left as soon as NBC announced that, desperate to keep Jay away from ABC or Fox, they were giving him the 10pm slot. This alone made Conan's success almost impossible. Jay would always get first crack at the best guests, first crack at the days events to riff on in his monologue and Jay would take his loyal viewers with him. When Johnny Carson retired, a sizable number of his loyal viewers watched Jay -- they had no choice. Sure, they could watch Letterman but that's not the same ... it's not The Tonight Show! Many became loyal Jay fans. In fact, Carson basically disappeared when he retired, making sure that he didn't rain on Jay's parade. With the Jay-Conan transition, Conan had no such help ... Jay's loyal fans just watched him at 10.

Then there's the abysmal performance of Jay at 10. That was predictable to everyone, except, perhaps, to NBC's programmers.

But give credit where's credit is due. Jeff Zucker and Co. did one big thing right -- they acknowledged, and acted to deal with, the fact that doing 5 nights of hour-long dramas in prime-time on a broadcast network is no longer financially tenable. The math just doesn't add up. Faced with this reality and others, the reaction of most network executives is to 'manage decline' and hold on as long as possible. At least NBC took a shot, even if they executed poorly (to put it kindly).

Lots of old media companies will draw exactly the wrong lessons from this debacle. They'll be convinced that radically re-imagining their business plan based on current realities carries undue risk. They will say "See what happened to NBC when they tried to do it differently?" It's the same thing people say when discussing Katie Couric at CBS. In the early days of her tenure, she and producer Rome Hartman began experimenting with re-formatting The Evening News. They failed, and critics had a field day, saying that Katie was trying to turn the show into Today at night. She wasn't ... and while you can argue with the how ... they should be lauded at least trying. They tried to breathe new life into a dying institution. Tried to bring in viewers that have been inaccessible to them.

Another example that people use is TimesSelect. "You can never charge online for content ... didn't you see what happened to the New York Times with Times Select?" But the fact is, the Times executed a poor plan poorly, probably at the wrong time. That doesn't mean that the Times should just continue on indefinitely with the status-quo. Because it will bankrupt them if they do (unless Carlos Slim takes full control of the paper and bankrolls it as a vanity project).

It's hard to guess where Conan will go next. Perhaps he can go to Comedy Central, airing after the Daily Show and Colbert. It would certainly free him creatively, and give him, finally, strong lead-ins from shows with similar demos. Perhaps NBC's new masters at Comcast will let him out of his contract for such a move -- it's not a direct competitor like ABC or Fox, and their main business is cable, after all, where the Comedy Central airs. Viacom probably couldn't afford Conan's current rates ... but it's no longer about the money. Conan is now faced with rehabilitating a career that has been badly damaged through no fault of his own -- rather, it's been damaged by the network he made hundreds of millions of dollars for.

One other interesting note. Conan's press release named two late-night personalities by name -- David Letterman, the man he revered for so many years (also a man who, foreshadowing his own fate, was mistreated by NBC) and Jimmy Fallon. He didn't mention Jay by name, only referring to The Jay Leno Show. I think it must be particularly galling for Conan to be supplanted by a man who, I suspect, he thinks is a hack.

 
Watching NBC implode must be great fun to Jeff Immelt and his colleagues at GE. Probably not so much fun for Brian Roberts and Comcast. I know the deal was about long-term strategy for both companie...
Watching NBC implode must be great fun to Jeff Immelt and his colleagues at GE. Probably not so much fun for Brian Roberts and Comcast. I know the deal was about long-term strategy for both companie...
 
 
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Bailey Reynolds
Gulf War vet, Recovering Republican
05:15 PM on 01/14/2010
I appreciate your perspective, Dennis. NBC's treatment of Conan O'Brien is reprehensible. I will follow Conan wherever he goes; and can't wait to see Leno & Co. further humiliated when he wipes the floor with them in a freer format.
06:47 AM on 01/14/2010
One thing caught me by surprise in this whole kerfluffle: In a time when every TV comes with a remote, when there are DVRs and Tivo and Hulu and On Demand, the concept of the "lead-in" is still important.
(Leno's problems began when local affiliates began complaining that his show was dragging down the ratings for their 11:00 news. It wasn't strong enough as a lead-in.)

When I was a kid--when we had to get up from the sofa, walk over to the TV, and turn the dial--people changed the channel much less frequently. Viewers were more likely to settle in with one network and watch it all night. But it never occurred to me that people still watch TV that way. I'm constantly flicking the remote during a show, let alone between shows.

I had assumed that quaint notions like lead-ins and a network "building an evening" went out with leisure suits and 8-track cassettes. In such a tech savvy world it amazes me that so many TV viewers are still in the Stone Age.
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Gudrun
My micro-bio is empty
09:28 AM on 01/14/2010
Even if you do record these shows, how much of this type of programming can you watch in a day or a week? It's overkill.
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11:49 AM on 01/14/2010
The lead-in is critical for certain types of programming. American Idol or NFL do not need a lead-in. They are appointment TV for their audience. Lead-in is critical for local news. It's pretty much the exact same content on multiple channels at the same time so the necessity of changing channels is not there. Plus the station gets to hype their news show during the lead-in. The drop for local stations has been 30-50%. That's catastrophic for local TV revenue already hurt by an advertising depression.
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JBS
Part time misanthrope & full time curmudgeon
03:16 PM on 01/15/2010
OTOH, the local news needs to be worth watching.

Doesn't matter how good the lead-in is if the local news isn't good enough.
01:55 AM on 01/14/2010
I don't watch broadcast TV at all anymore but I watch Craig Ferguson and Jimmy Fallon online -- during the early evening when it is most convenient for me. I used to be a fan of Conan O'Brien but his humor on the Tonight Show was so polite and watered down that I only watched it a few times -- maybe he's gotten better with time but I always forget to check.

Even when he is funny Conan is too much like Letterman. It might not have worked anyway to put two snarky wise guys up against each other.
01:10 AM on 01/14/2010
I don't think NBC deserves any credit for trying to shake things up. They were just trying to go on the cheap.

To compound the problem, rather than being forward-thinking, they tried to go back to a show format that was decades past its heyday.

If anything, the networks should look to cable to learn something. That's where all the top shows are located. If you produce well-written, creative shows, people will watch. If you produce hackneyed, unfunny drivel because it's cheap, then people won't watch and advertisers won't pay. Garbage in, garbage out.
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11:53 AM on 01/14/2010
NBC the #4 broadcast network still out performs any cable channels ratings over all. Some cable shows occasional pop up to broadcast numbers but it is still rare unless you are looking at sports. NFL on ESPN for example. Wrestling and Sponge Bob are the traditional ratings leaders on cable..
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Brian Ross
Managing Editor of Truth-2-Power.com
11:05 PM on 01/13/2010
Know your history: Leno was Carson's tap for the job, which sent Letterman, also in the Late Night slot over to CBS. Conan forced the issue and his numbers suggested that his demographic was aging into the Tonight Show. The problem is that Jay also appeals to that demographic. The big reason that was a disaster though was that people tune into the first half hour of the Tonight Show. There is a drop off after the opening comedy bits. The carry over is from the news. Jay was damaging 11:00pm newscast ad rates because people were tuning out before they got to the news. Conan wasn't picking the demo back up.

That Jay has the upper hand here suggests that the network figures that he will be the go-to guy to repair numbers.

You don't look at Jimmy Kimmel's slot. I would. He is the most vulnerable. Fox isn't in every market. To go toe to toe with Jay and Letterman, Conan needs that ABC slot.

Last you have the GE "sale" screwed up. They get 49% of the new entity. Comcast has 51%. The have just as much vested interest in making the late night slots successful.
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benskelly
11:40 PM on 01/13/2010
Know YOUR history, blue box. You're exactly wrong. Carson wanted Letterman to take over the reins of The Tonight Show, but he had no say in it - it was all NBC. Why do you think he came (briefly) onto David Letterman's CBS show and never once showed his face on Leno?

You are wrong, sir. Probably shouldn't correct people when you don't know.
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12:03 PM on 01/14/2010
That's not all that's wrong here. Jimmy Kimmel is not going anywhere! ABC is very happy with his ratings!
FOX does have total coverage. It was Rupert Murdoch's signing of the first billion dollar sports contract bringing the NFL to FOX that put them on everywhere.
Where will Conan go?
I'll bet FOX. But it won't be until the Fall at the earliest. FOX stations have programming in place after their 10PM news. Mostly Seinfeld or other off network sit-coms. The FOX network will have to sell Conan to their affiliates.
Will he succeed? It is not a given fact that he will.
10:17 AM on 01/14/2010
Talk about KNOW YOUR HISTORY! You evidently DON'T, since it was WIDELY publicized how Johnny HATED Leno as his replacement! I was there! He was SO upset when Leno was made the host, it WAS in all the gossip rags back in the day (this was before teh internets...)

How funny to have someone ignorant attempt to "educate" the masses...Do as you say, BEFORE you preach it to others, Brian!
08:42 PM on 01/13/2010
There's that line in "Broadcast News" where Jack Nicholson (as the national news anchor) looks at the office that is going to be wiped out by layoffs and says, "and all because they couldn't program Tuesday night." or something similar (or it was said to him.)

Here's my question, Leno's people knew that this was a risky experiment and put a significant guarantee into the contract, then were they really thinking that NBC would let the experiment run the full contract's length and that the money would guarantee Leno would have a chance to build an audience? And was NBC thinking that they had to keep Jay off of ABC and figured a big guarantee and few months at 10 pm and paying Jay for months to sit if it failed made sense? Or was moving Jay back to 11:35 and push Conan back always NBC's escape plan?

If the point of the contract was the pay Jay to not compete with "The Tonight Show" then what happened? Conan not build numbers fast enough? Changes at NBC both before and after the Comcast deal got signed? I"m waiting for the book on this one. My prediction, late 2008, was that Leno wouldn't work at 10 and scripted programs would come back on Thursday at least. I also think the Jay at 11:35, Conan at 12:05 scheduling has some merits, but I can understand the anger from the principals.
08:03 PM on 01/13/2010
NBC hasn't bombed this much since the Fred Silverman days.
It took Bill Cosby to save that network in the 80s.

Guess Comcast better learn from NBC's history and find another Cos.
04:17 AM on 01/14/2010
All Comcast wants to do is own Hulu and cut out free online viewing. Plus: Bye Bye Rachel Maddow.
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10:08 AM on 01/15/2010
Comcast owning MSNBC could be a disaster. This company's heart lies along side Murdoch's.
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ThreeCrows
"More human than human" is our motto.
06:44 PM on 01/13/2010
Dennis, I must make a point of contention with you about Johnny Carson. Carson wanted Letterman to be the heir apparent to the Tonight Show, not Leno. NBC, however, wanted someone they could control. Letterman was always this loaded weapon of unpredictability who would go after the hand that feeds him. He would poke fun of the corporate beast, GE, or ride Bryant Gumbel while they broadcast on the Today Show by shouting through a bullhorn. Leno was the safer bet, amiable, compliant, malleable to anything they want. When Carson left, he didn't look back. While in retirement, he went on Letterman's show. He even wrote jokes for Letterman because he needed an outlet for humor. Letterman acknowledged his contribution when Carson died by reciting the jokes he wrote. If you know comedy styles, you could tell it was Johnny's material because it was his signature style when Letterman did the jokes. And those in the comedy world knew that Johnny had more respect for Letterman than he did for Leno. NBC should have gone with what Johnny wanted in the beginning. Johnny knew when to leave the stage and he was respected for it. Leno pissed off the WGA when he broke the line and went back to work, Letterman signed agreements with the WGA and returned to work. Leno is leaving another host grasping for that blade NBC helped put in his back.
08:35 PM on 01/13/2010
Nice post Crow. There's a good Youtube segment from Letterman show where he and Peter Lassally (longtime friend of Johnny's and one of his producers) reminisce after Johnny's passing. Peter brings up how he suggested to Johnny that he send Dave some jokes. It's well worth a look.
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benskelly
11:45 PM on 01/13/2010
Well said, ThreeCrows. You're absolutely right.
10:28 AM on 01/14/2010
Excellent summary of the sordid past. SO sad that NBC continues to sully the legacy of The Tonight Show. It was one of the true cornerstones of Television History, from the very early days, when it was hosted by Steve Allen, through Jack Parr, and Johnny Carson, who helped hone it into the institution beloved by so many for so long. Leno was not horrible, but he also was NOT what the Tonight Show was, which was irreverent, but gentle, without being pandering or superior. Jay never really was able to connect in that way. It ALWAYS seemed like he talked down to the audience as a bunch of "shills." That's the true secret behind Conan, Letterman, and the rest. A sharp wit, a sharp sense of humor, but also more of a "I'm just one of you" attitude, rather than a "I'm a great entertainer for you." Johnny, with his humble Nebraska roots, never forgot. Letterman has, over the years, forgotten, until his hubris is forced to return through his own adventures...But he too, has adopted this sense of "entitlement" that makes him less entertaining to watch.

I'M WITH COCO!
No COCO, No WATCHO!
05:24 PM on 01/13/2010
NBC has a contract with Leno guaranteeing his show for 2 years regardless of its ratings. That's why they can't cancel it. NBC really screwed itself here.
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03:20 PM on 01/13/2010
Why does Conan have to be the one to submit? Let Jay Leno come on after Jimmy Fallon. Jay is used goods after this mess.
02:11 PM on 01/13/2010
"What was NBC management thinking?"
THEY WEREN'T (thinking) ... beyond their bottom line (it's cheaper to produce Jay's show than REAL ENTERTAINMENT -- Medium, Southland, etc). Besides, NBC hasn't had a great programming chief since Brian Tartakoff (sadly, deceased years ago).
GE ran NBC like part of its corporate structure -- NOT as a broadcasting operation that had to answer to VIEWERS. We the People (the public) ... viewers OWN THE AIRWAVES -- not NBC (or Comcast).
NBC wasn't bright enough to let Jay walk out the door - WHEN HE RETIRED (as they should have). So, NBC RE-INVENTED the wheel for Jay -- screwing COUNTLESS MILLIONS OF LOYAL VIEWERS IN THE PROCESS. Now, we the VIEWERS see NBC screwing ANOTHER nice man & good talent: CONAN.
Less than three million people want to see Jay Leno -- at any time period. Conan deserves the 11:35pm time slot as he labored FOR 16-YRS as a "second fiddle" when he COULD HAVE gone elsewhere (like Letterman did, when NBC screwed HIM).
Jay got the Tonight Show by playing under-handed (listening in on confidential NBC execs conference calls, etc. THEN PRETENDING he was getting "inside info" from higher-ups). NBC caved to Jay's shenanigans before & LOST LETTERMAN.
All NBC is doing NOW is: creating an ugly BOYCOTT for itself by the MILLIONS of 10pm drama viewers, Conan's fans, and Americans WHO HATE "dirty pool" ... the kind NBC has been playing for years! TEAM COCO FOREVER.
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stagebandman
01:48 PM on 01/13/2010
Dave saved Jay's career. Jay stabbed him in the back. Jay decided to leave the Tonight Show years ago, and said he wanted to try other things while he was still able, and turn the reigns over to Conan, whom he heartily endorsed. Then he stabbed Conan in the back I think we can all see the problem here.

How about having Jay's show on for 2 hours on Friday night? He can make it a weekly extravaganza, it won't have the same feel as a nightly talk show, thus letting Conan still be the main attraction in that respect, and he could make every show special. Expand on his usual shtick and introduce now things. He could move around the country and do the show in different cities more. It's the only win-win situation I can come up with.
05:45 PM on 01/14/2010
I believe you are confusing Jay Leno and NBC. This is not Jay's fault. He gracefully stepped down after the contract with NBC, but NBC refuses to release Jay fearing he'll be a competitor to Conan. Now that this carp happens, NBC tried to save money and chose Jay, who has produced for them both $$$ and ratings on The Tonight Show and a proven product instead of CoCo.

BTW, where were you when Conan needed the ratings/viewership? Did you watch his shows religiously?
01:41 PM on 01/13/2010
One thing that hasn’t been talked about is what NBC Executives will be fired over the mess? Comcast should clean house once they get the deal closed and are in charge.
01:40 PM on 01/13/2010
Another idea is they could’ve paid Leno not to work or go to another network. Or pay not to play. It would cost NBC money but it would’ve kept Jay off ABC and would‘ve prevented the mess they are in now. Jay may not have agreed but NBC should’ve tried.
01:25 PM on 01/13/2010
...and what of Conan's next move? You mention Comedy Central as a good alternative if the brain trust at NBC permits. I'm sure he'd be great following the Daily Show and the Report. He sure has experience following the prime programs.
Here's another thought. This past Monday, we offered Conan his own program here at Shovio.com right smack in his favorite time slot. He can even do the show home in his pjs and big fluffy slippers if he wants. If you get a chance to run this by the auburn one, we'll be waiting for his reply.
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stagebandman
05:13 PM on 01/13/2010
But he'd still be on a half hour later than he is now, and seen by a fraction of his current viewership. Not a good move.