Archive notice: This article was originally published on January 25, 2008. Links and embedded videos are preserved as part of the historical record.
US media group NBC Universal http://www.nbcuni.com intends to reduce production of series pilots to a minimum. The move is intended to save around $50 million annually, the Wall Street Journal reports. According to company chief Jeff Zucker, the cost-cutting decision was made because of the still-ongoing writers’ strike and the generally poor economic situation in the USA. “It is clear that we are in a recession and must align our business accordingly,” says Zucker. Until now, it was customary for media groups such as NBC to make large investments in pilot episodes in order to secure support from the advertising industry for a series’ entire season.
According to Zucker, production costs of up to seven million dollars for a one-hour pilot are simply too high given that this still does not guarantee the series’ subsequent success and, in many cases, further episodes are not even produced. Although there will still be individual pilots in future, NBC generally intends to avoid them. Other media groups are now thinking along similar lines and considering limiting pilot production, according to industry sources.
NBC had recently been struggling with weak ratings in prime time, which also contributed to the decision. Combined with the screenwriters’ strike that had been going on for months, this now required the company to rethink its approach. Although the writers’ strike currently appears to be easing, the outcome remains uncertain. “We naturally cannot say how much longer the strike will last, but a solution is now more likely because of the agreement between the directors and the producers,” is the assessment of Katharina Uppenbrink, managing director of the US media group NBC Universal http://www.nbcuni.com intends to reduce production of series pilots to a minimum. The move is intended to save around $50 million annually, the Wall Street Journal reports. According to company chief Jeff Zucker, the cost-cutting decision was made because of the still-ongoing writers’ strike and the generally poor economic situation in the USA. “It is clear that we are in a recession and must align our business accordingly,” says Zucker. Until now, it was customary for media groups such as NBC to make large investments in pilot episodes in order to secure support from the advertising industry for a series’ entire season.
According to Zucker, production costs of up to seven million dollars for a one-hour pilot are simply too high given that this still does not guarantee the series’ subsequent success and, in many cases, further episodes are not even produced. Although there will still be individual pilots in future, NBC generally intends to avoid them. Other media groups are now thinking along similar lines and considering limiting pilot production, according to industry sources.
NBC had recently been struggling with weak ratings in prime time, which also contributed to the decision. Combined with the screenwriters’ strike that had been going on for months, this now required the company to rethink its approach. Although the writers’ strike currently appears to be easing, the outcome remains uncertain. “We naturally cannot say how much longer the strike will last, but a solution is now more likely because of the agreement between the directors and the producers,” is the assessment of Katharina Uppenbrink, managing director of the German Screenwriters’ Association (VDD) http://www.drehbuchautoren.de, speaking to the pressetext.de news service.
In parallel with the cost reductions, NBC Universal plans to strengthen its international business. As Zucker announced, revenue outside the USA is expected to grow from 2.8 billion in 2006 to five billion in 2010. Various international expansion steps had already taken place in 2007. As has been known since Tuesday, the group is now also acquiring a stake in an Indian TV company that operates several entertainment channels in India.
