http://online.wsj.com/article/SB10001424052748703787904575403211895349200.html
BOSS TALK | AUGUST 2, 2010 Free Content Isn't a Right, Nor Is His Job, CEO Says By SAM SCHECHNER As NBC Universal prepares for a planned takeover by cable giant Comcast Corp., its chief executive, Jeff Zucker , may be auditioning for a big job: his own. After years of slashing costs at NBC and saying broadcast television is broken, Mr. Zucker sees a brighter outlook. He's pouring tens of millions of dollars into new TV series. He also funded a new animation arm at the Universal movie studio, which could be seeing the beginnings of a turnaround with its recent hit "Despicable Me." Those shifts could provide much-needed boosts for the broadcast and movie sides of NBC Universal. Since Mr. Zucker, 45 years old, took the reins of the television and movie company in 2007, its NBC network has seen its prime-time hours languish in fourth place and last year Universal stumbled after a strong run. During his tenure, Mr. Zucker, who once ran NBC's "Today" show, has also invested in NBCU's stable of cable networks, including USA, CNBC and Bravo, where profit has consistently grown. Those networks were a big reason Comcast agreed to buy 51% control of NBC Universal from General Electric Co. Overall, NBCU earnings are showing signs of improvement, with second-quarter profit rising 13%. Meanwhile, he's navigating the business's biggest threat: Viewers will continue to watch more programming online. Mr. Zucker shared his strategy at his West Coast office in Universal City, Calif. Excerpts: WSJ: What are the biggest challenges for the media business in the next several years? Mr. Zucker: There's never been a better time for the creation of great content. [But] it's much more fragmented and lives in many different places than ever before. WSJ: How much TV programming should be available free on the Internet? Mr. Zucker: We have to figure out how we are going to pay for this quality content. We used to be able to run our programs on the broadcast network [multiple times]. And that is how we would pay for it. Today, in large part because of all of the new digital technology, including the Internet, we often get just one run out of those very same programs. So, I do not think that it is a foregone conclusion that content should be free on the Internet. WSJ: For years, you said broadcast television was broken. Now you're pouring money back into that business. What changed? Mr. Zucker: There was one fundamental structural change in broadcast television, and that's the payment of discrete "retransmission" fees to broadcast networks [from cable and satellite operators]. That will help change the economics of broadcasting. Two years ago, that wasn't clear that that was going to happen. WSJ: Even with those fees, will broadcast networks be able to sustain such high costs and so many hours a week of programming? Mr. Zucker: We have made the commitment to be in broadcasting. And if we're going to be in it, we're going to be in it to win it. That's an expensive proposition, and that's why we've made a renewed commitment and a tremendous investment in NBC Entertainment this fall, for instance. WSJ: Why do you think NBC hasn't had a big hit in several years? Mr. Zucker: Look, we've had such success around all the other parts of the company, whether it's in cable, or news or sports. That success has eluded us recently in prime time. I think we didn't have the right management team in place, and we hadn't allocated enough resources to the team. And I think we've corrected both of those issues. WSJ: Six months after the public battle with Conan O'Brien about your decision to move Jay Leno back to late night, is there anything you wish you'd done differently? Mr. Zucker: I regret that it became a soap opera, and that it played out as publicly as it did. WSJ: What's the future of late-night TV? Mr. Zucker: It is much more fragmented today then it's ever been. Obviously, we're not going to see the kind of audiences that we did, even five or 10 years ago, because of the tremendous entry of all these new shows. WSJ: How about the future of cable television? Have the biggest cable networks hit their peak? Mr. Zucker: I wouldn't necessarily accept that hypothesis. If you look at the top 10 cable networks, the ratings this year for half of them are up, year-to-year. So, I think there is a lot of fragmentation in cable, but the strongest ones continue to be quite strong. I think that we've proven that with original programming at USA, for instance, which has been the number one cable network four years in a row. I believe if you put on good programming, people will come. WSJ: There's been a lot of speculation that Comcast will replace you when it takes over NBC Universal, assuming the deal is approved by regulators. How long do you expect to stay in your job? Mr. Zucker: Nobody is entitled to any job. Having said that, there's probably never been a better time to be in this role at NBC Universal. Things are going incredibly well, and I'm excited to continue doing that, and looking forward to continuing to do that for quite some time. WSJ: As Washington considers approval of the Comcast-NBC Universal deal, what aspects have been attracting the most interest? Mr. Zucker: I think that video on the Internet is obviously a rather new phenomenon, and I think there's a lot of interest in it. And I'm sure that there are questions around its future. But, it's such a nascent business that we're all trying to figure that out, and I'm sure that the government will look at that as well. WSJ: And are there cultural differences between Comcast and NBC Universal? Mr. Zucker: You know, I don't know yet how we differ, but I just hope that Comcast is as lenient with "30 Rock" making fun of them as we have been with them making fun of us. -- TV or Not TV .... The Smartest (TV) People! You received this message because you are subscribed to the Google Groups "TV or Not TV" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/tvornottv?hl=en
