Media World: Will NBC dump Jay Leno?
Filed under: Media, General Electric , Comcast
Tom Shales, the famously cranky TV critic at The Washington Post, is predicting that Jay Leno's new show may not survive if Comcast Corp. (CMCSA) takes over NBC Universal."Among the first items of business [following a Comcast takeover] might be the undoing of another deal: the pact NBC made with Jay Leno, giving him the last hour of prime time Monday through Friday all year," Shales wrote. "So far, 'The Jay Leno Show' has been a ratings weakling with a strong negative effect on the rest of the NBC prime-time schedule."
There was no immediate comment from NBC brass on Shales' story, which seems entirely plausible. GE executives said today they were pleased with the show's launch. But as today's earnings announcement from General Electric Co. (GE) underscores, NBC Universal's importance to GE is vastly overstated by the press. Call it the power of show business. While NBC Universal is a huge company by most measures, it is surrounded by scores of other GE businesses that are much, much bigger.
NBC Universal has also long underperformed its sister GE businesses. This quarter was no exception. Revenue fell 20 percent to $4.08 billion while profits, excluding the reduction of its stake in the A&E Television Network, fell nine percent. The Universal film studio and theme parks businesses both performed poorly. One bright spot was the cable business, seen by analysts as one of reasons Comcast wants NBC Universal, with channels such as Syfy, Bravo and CNBC posting gains.
On a revenue basis, only GE's Consumer & Industrial unit is smaller. In the nine months ended September 30, only GE Capital had a bigger profit decline.
During today's earnings conference call, only one Wall Street analyst asked company executives a question about the potential deal with Comcast, and he did not get much of an answer. "NBC Universal is a great franchise," said Chief Executive Jeffrey Immelt. "It's a solid performer. Vivendi has been a great partner. . . . This year, we wanted to be ready for several scenarios including an IPO or another partner."
Investors have long wondered by the world's largest maker of aircraft engines needed to have a foothold in Hollywood, which it has had since 1986. In the 21st century, such a business combinations make no sense, if they ever did.
For the deal to make sense to Comcast, big changes have to be made to NBC Universal including the former "Tonight Show" host's deal struck with Jeff Zucker. As Shales writes, Leno has infuriated Hollywood producers by insisting that no "depressing shows" be aired in the nine o'clock hour before his program, "virtually eliminating all opportunities for serious dramatic television on NBC."
Shares of Fairfield, Conn.-based GE fell today after the conglomerate failed to wow Wall Street with its third quarter results. Profit from continuing operations was $2.5 billion, or 22 cents a share, down 45 percent from $4.48 billion, or 45 cents, a year earlier. The average profit estimate in a Bloomberg survey, excluding some items, was 20 cents a share.
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Reader Comments (Page 1 of 4)
10-17-2009 @ 11:29AM
MElaine said...
Leno doesn't want anything depressing BEFORE his show??? Leno IS depressing!!!
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10-18-2009 @ 9:21AM
2kndn said...
Not sure these guys have any pulse on the public at all.
They do have one very good show in Friday Night Lights but some bonehead has decided that we should wait over a entire year to pick up from last season,
You guys just dont get it.
I cant feel sorry for NBC
10-18-2009 @ 11:57AM
King David said...
You're an idiot!! Leno is the best thing to happen to 10 o'clock PM. You're obviously so used to ending your day with pain, grief, agony and blood and guts you don't know how to act with comedy, to be able to smile before you retire for the day. Why do you thing the 11:30 slot is so wanted??? People get saddened by the 11 o'clock news -- there IS NEVER ANY GOOD NEWS, JUST PAIN FOR THE DAY, WEATHER, AND SOME JERK TELLING HIS OPINION ABOUT SPORTS - although he never touched a sports ball in his life (just his ...)??? Now I can enjoy comedy to taper off my day, then something else at 11, then if I'm still up, the monologue of Letterman then the best damn comedy-talk show going -- Jimmy Kimmel!!! (although Craig Ferguson is a tie, now that I think of it). If NBC let's Leno go then he WILL be back, on another channel, and beat NBC's brains out!!! Guaranteed!!!
10-18-2009 @ 6:27AM
Jenny said...
Well since GE & NBC are in bed with Obama and Obama put Jeff Immelt on his advisory committee and since Obama loves being in front of the camera, they will probably get rid of Leno and have "late night with Obama". He can be on TV everynight! Woooo Hoooo! More Obama on TV!!!!!
I sure hope that is what they have planned. Obama will really get those ratings up!
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10-18-2009 @ 9:03AM
AG said...
What horses's butt you are!
10-18-2009 @ 9:51AM
JCM said...
Jenny, Jenny, Jenny ... flashing that ignorant strain again ... it's getting so tiresome .........
10-18-2009 @ 9:36PM
Renee said...
Well anything will be better then looking at your white face.
Lets face it Obama is here and there isn't a thing you can do about it. Oh yeah you can move back to your old country
where white is always right (wro.ng)
10-18-2009 @ 7:51AM
richie said...
truly ignorant people choose to bring politics into this issue which is of course just a business story.
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10-18-2009 @ 9:15AM
Nancy said...
I say do something to get out of any contract you have with Conan and put Jay back in that spot. It was the best place for him and Conan is really bombing. Not even the young crowd go for Conan. We miss Jay on the Tonight Show. Surely you can find something to put at the earlier hour.
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10-18-2009 @ 8:43AM
JEREMY said...
Jay Leno has a column he writes for POPULAR MECHANICS called "Jay Leno's Garage",where he talks about cars past and present.I like the idea of him doing THIS type of show ,THE KIND OF INFORMATION YOU CAN REALLY USE, rather than the latenight talk thing.If he DOES get kicked to the curb by NBC,he should head right over to BRAVO,and start this new show.
10-18-2009 @ 8:36AM
Betsy said...
Conehead is NOT funny......... I tried watching for a couple of days and he is just soooooooo bad. Do people really thing this man is funny? Letterman is not much better, with his bandleader, Paul. They both seem like they are not all there. Bring Jay back where he belongs, kick Conan out and bring us back some good drama shows at 9 and 10!
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10-18-2009 @ 9:12AM
frank said...
all though I believe that the Leno show wasn't as interesting as the tonight show when Leno was running that, it has kind of grown on me , its kind of wierd witnessing this type of program at 10 pm instead of 11:30 pm , now I was wondering why not once or twice a week , NBC doesn't have a lot of good shows anyway , I think that NBC needs to look at whats surrounding Leno , because his show is not the only one with poor ratings on NBC !!
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10-18-2009 @ 9:20AM
frank said...
Jenny your just a total loser all the way around , Obama has done more for this country in just 8 months than GWB did in 8 years and anyone who thinks that after 8 years of GWB idiocy that someone can just waltz in and fix things is a total idiot - and I'd watch or listen to NBC politics over Fox anyday - at least NBC doesn't make crap up or have a bunch of whining loosers ( who make 400 million a year combined ) stirring up controversy , lying about issues they have no clue about - ignorance runs rampant within the conservative movement - now excuse me while I flush my conservative movement !!
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10-19-2009 @ 11:43AM
Lisa said...
Frank, are you f'n kidding???????? You can not be serious!!!!!! Wait until you see your paycheck next year and then tell everyone how much you LOVE Obama & Friends!!
10-18-2009 @ 9:41AM
JR said...
DUMP JAY!!!
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10-18-2009 @ 9:27AM
JR said...
Earth to Jenny - It is time for your meds. Turn off computer and go lie down before you hurt yourself.
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10-18-2009 @ 9:28AM
JR said...
DUMP CONAN!!!
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10-18-2009 @ 9:32AM
Sal said...
May Leno get his just rewards for his long propaganda campaign against Bush and demoralizing the nation to accept a Communist Dictator. under the guise of comedy. There wasn't one show that he did not vilify Bush or attack our government, with the insideous purpose of destabilizing our population. That high school dropout constantly attacked Bush's intelligence: a law school graduate, jet pilot, very successful businessman.and governor. He promoted an illegal Marxist immigrant, who won't disclose his academic records or held a job.
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10-19-2009 @ 11:00AM
Jim said...
Neither President Bush or Vice-President Cheney went to any law school. Both did get degree's in economic's and finance.
10-18-2009 @ 9:35AM
Margie said...
Frank, Are you sure you want to flush? I think you might miss what little brains you have.
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