December 13, 2008

Jay Leno’s Move Hints at Future of Prime-Time TV
By BRIAN STELTER
NY Times

http://www.nytimes.com/2008/12/13/business/media/13shift.html?_r=1&ref=television&pagewanted=print


LOS ANGELES — Jay Leno is putting a big dent in the “checkerboard.”

With one sweeping shift this week, the ailing NBC network reordered the 
playing field of prime-time television. The introduction of a 
five-night-a-week program starring Mr. Leno, beginning next fall, was a 
concession that TV norms cannot continue, at least not at fourth-place NBC.

The programming and viewing habits of the last 50 years — exemplified by 
the checkerboard of competing programs on the broadcast networks — are 
being replaced by an Internet-influenced time-shifting model of 
scheduling. As a result, the very definition of prime time may be changing.

“We do have to continue to rethink what a broadcast network is,” Jeffrey 
Zucker, the chief executive of NBC Universal, a unit of General 
Electric, said at an industry conference Monday, hours before the news 
of Mr. Leno’s new assignment emerged. He warned that if changes were not 
undertaken, “the broadcast networks will end up like the newspaper 
business or, worse, like the car companies.” Maybe Mr. Zucker has seen 
the future; after all, his network has lost 50 percent of its 10 p.m. 
audience in the last three years.

The announcement of Mr. Leno’s show continues to reverberate on studio 
lots and executive corridors here, as the Monday-through-Friday “strip” 
is unprecedented in the modern network television era. NBC framed the 
decision in terms of competitiveness and cost-effectiveness, because it 
defuses the risk of Mr. Leno’s move to another network and saves untold 
millions of dollars a year. But it also reflects the increasing 
irrelevance of the network schedule.

The irrelevance is partly because of digital video recorders, the bane 
of many a television executive. Viewers in the 28 percent of homes with 
DVRs are recording programs at 8 and 9 p.m. and playing them back later 
in the evening, hurting the 10 p.m. hour. Of the 10 prime-time programs 
that gained the biggest audience from DVR usage this year, none were on 
at 10 p.m.

The biggest gainers from DVR viewership were dramas. According to 
statistics on time-shifting released by Nielsen Media Research on 
Friday, the NBC series “Heroes” benefited the most from DVRs, with a 35 
percent increase in its audience after seven days of time-shifted 
viewing. The new Fox drama “Fringe” experienced a 26 percent increase, 
and the ABC series “Lost” had a 25 percent increase.

But TV recording is only one component of a larger shift in 
entertainment consumption. Time-shifting of all sorts — a combination of 
DVRs, Internet video viewing, cable repeats, DVD sales and other viewing 
patterns — is having a profound impact on all the networks. The 
always-on nature of content, inspired by the Internet, is freeing 
consumers from the previously all-powerful schedule. And it is making 
the networks think more like cable channels, which tend to repeat shows 
more often.

“The whole nature of TV has become a lot more viewer-friendly,” said 
Robert C. Wright, the former chairman of NBC Universal and a senior 
adviser to Thomas H. Lee Capital. “There are more opportunities than 
ever before for people to watch a program that they’re interested in.”

But the downside is evident to anyone who measures the gradual ratings 
declines for an ever-more-fragmented TV landscape. Advertisers pay for 
air time using ratings that include only the first three days of DVR 
playback, under the assumption that the ads become less relevant over 
time and that most viewers will watch shows by then. As a result, 
networks are looking to schedule programming that can encourage live 
viewing.

On Tuesday, Ben Silverman, the co-chairman of NBC Entertainment, called 
“The Jay Leno Show” a “killer app,” not only because of the comedian’s 
talents, but because “you want to watch it that night, and you want to 
watch it the next night.”

Mr. Silverman predicted that the program would be “totally DVR-proof.” 
That’s not technically true. “American Idol,” an event-style program, 
experienced a 12 percent increase in its audience from time-shifted 
viewing, according to Nielsen.

“There’s no way to schedule around DVR viewing,” said Dawn Ostroff, CW’s 
president of entertainment. “You have to assume that a good number of 
viewers are going to wind up watching the content in a different way.”

Due in part to time-shifting, many viewers, especially the younger ones 
who are prized by advertisers, do not know what is on at 10 p.m. And 
they increasingly do not care. There is a simple test of this scheduling 
shift: just ask a friend what time “Dateline NBC” is broadcast. The 
hard-to-remember answer is Friday nights at 10 — but not for long.

Therein lies the potential benefit of Mr. Leno’s 10 p.m. move. 
Jay-at-10, if it succeeds, will not require a glance at the on-screen TV 
listings; it will be a consistent part of NBC’s schedule and identity. 
But the plan also comes with significant risks. CBS and ABC are expected 
to counter-program NBC’s 10 p.m. talk show with dramas, and NBC has 
already acknowledged that it expects to receive lower ratings than its 
network competition.

And there’s always cable. At a panel discussion sponsored by the 
Hollywood Radio and Television Society on Tuesday, James Duff, the 
executive producer of “The Closer” on TNT, said NBC executives were 
“actively participating in their own demise” by cheapening their 
product. “The more that the broadcast networks transform themselves into 
reality and talk shows, the more that dramas will go to cable and be 
done properly — the way they can’t on broadcast anymore,” he said, 
according to The Hollywood Reporter.

Cable channels, by and large, do not depend on a checkerboard approach 
to scheduling. TNT, the cable channel known for drama, attracted five 
million viewers for the debut of “Leverage,” a series starring Timothy 
Hutton, on Sunday at 10. TNT repeated the episode at 1 a.m., then 
directed viewers to the show’s Tuesday time slot, where the second 
episode was shown twice in one evening. This weekend, the two episodes 
will be repeated again. Scheduling moves like NBC’s this week hint at a 
similar future for the other broadcast networks.

“It may just get too expensive to continue with the checkerboard model,” 
said Laura Caraccioli-Davis, an executive vice president at the media 
agency Starcom Entertainment. “Every network — whether they want to 
admit it in the press or not — is looking for creative, cost-controlling 
scheduling opportunities.”

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================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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