NBC grabbed headlines yesterday as the first of the three major U.S. television networks to begin compensating advertisers with cash for its low ratings. But in fact, all three — ABC, CBS and NBC — are finding one way or another to make up for an overall decline in viewership.
Everything from the popularity of digital video recorders to a lack of any breakout hits has been blamed for the viewer shortfall. And it’s likely to get worse if networks continue to air reruns to replace shows knocked out of production by striking Hollywood writers.
The talks aren’t looking good either. Contract talks between the studios and the Writers Guild of America broke off last week, dashing hopes of a speedy resolution.
If the strikes persist, look for more networks paying out cash like NBC.
(Reuters)
Keep an eye on:
- Hollywood is feeling the pinch from strains in U.S.-China trade relations. China has stopped granting permission for U.S. movies to be shown in its theaters. (Reuters)
- Regional newspaper company Johnston Press said underlying UK print advertising revenue has almost fully recovered from the weakness in the first half, but fell in Ireland amid a weak property market. (Reuters)
- Yahoo Finance will begin distributing content from the business news channel CNBC. (New York Times) Henry Blodget suggested that cable was “screwed” by the deal. Does anyone remember Yahoo’s earlier failed effort Yahoo FinanceVision?
- Penthouse Media Group CEO Marc Bell remains so bullish on the sex-related entertainment industry that he is investing $500 million to buy Various Inc., owner of erotic matchmaker AdultFriendFinder.com and other social networking sites. (NYTimes)
(Photo: Reuters)
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