Does NBC’s Potential Primetime Retreat Propose More Changes to Legacy Network Model?

Warner Bros. When Discovery CEO David Zaslav wanted to make a good first impression of the company’s progress last spring, he used words designed to surprise an audience of ad buyers.

He said the newly merged company will now “stand shoulder to shoulder” with broadcast networks in terms of scale and reach. Thirty years after Fox became the fourth-largest network, Zaslav said WBD had “become number five.”

NBCUniversal news today shows that not everyone is as eager as Zaslav to be a part of the streaming club. A person familiar with the NBCU talks confirmed to Deadline that executives are considering a plan to potentially cut off the one-hour primetime program each night and give affiliates the 10 p.m. block. Wall Street Journal received the first report on these discussions.

No final decision has been made and the first move could be in 2023.

The news follows an equally bleak outlook for The CW as it is largely owned by Nexstar Media Group. Nexstar executives told investors last week that the company wants to profit from the CW by 2025. “It’s no secret that the CW is unprofitable,” said Chief Financial Officer Lee Ann Gliha, “but it’s not unique to one company.” completely dispersed. publisher. or cable networks. In fact, according to SNL Kagan, no other streaming network works at a constant loss.

Tom Carter, chairman and CEO of Nexstar, said the company would be financially tight “unlike other broadcast network owners” and promised “low sunk costs” and transfers. Riverdale Scripted combination of network signature.

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Costs are a growing concern for all streaming network owners, especially as they try to keep up with their streaming goals. Peacock, which NBCU launched two years ago, will double its spending on content this year to $3 billion and $5 billion over the next few years. If NBCU is interrupted in prime time, it could save money it had previously spent on original shows to air, in line with the worldly declines in pay TV and linear ratings.

The acceleration of cable and the explosion of streaming options over the past decade have wiped out most of the broadcast networks’ mojo outside of sports and non-text programming. As media companies are restructured to reflect a unified focus on broadcast, cable and streaming, there is no longer a sense of pulling a guide dog.

“Networks are at a tipping point in terms of costs,” said one broadcast veteran. “Live sports have become a major factor and their high prices are putting pressure on the costs of the rest of the offer. The question is whether affiliates want fewer hours of programming on the network.

“Since launching Peacock, we’ve said we’ve taken a different approach than most people in the broadcast business,” NBCU CEO Jeff Schell said in Comcast’s first-quarter earnings call last April. Said. “We don’t look at Peacock as a separate and distinct business. We think of it as an extension of our existing TV business, and that’s how we run it. This is how we open our business. This is how we program. This is how we sell both linear and Peacock ads.

Led by Eric Meyerowitz, vice president and group president of Hearst Television, NBC affiliates have been in turmoil in recent years. As the company poured money into Peacock, it also renewed its longstanding relationship with the NFL, a ten-year $2 billion contract. NBCUniversal has also agreed to become one of three companies to spend a record $7.5 billion to deliver Big Ten games, some of which are exclusive to Peacock. Both of these major football deals will go into effect next year, meaning retransfer approval fees are likely to increase. Sometimes, even with the ratings plummeting, the NBCU’s moves are met with resistance. In January 2020, when the company announced it would grant access to Peacock Premium subscribers show tonight with Jimmy Fallon and Last night Branches were on fire as Seth Meyers started at 8pm. The plan has yet to be officially announced, in part due to the Covid mess.

Through a spokesperson, Meyerowitz declined to comment on the potential impact on NBC stations when contacted by Deadline.

As for other networks’ plans, Disney’s latest strategy suggests ABC “could be a sensible player” for reduced primetime overhead, one media executive said. They seem to be in full swing on Disney+, ESPN+, and FX/Hulu. A decisive move along these lines was diversion. Dance with the stars After 30 seasons on ABC, it’s on Disney+.

According to insiders, discussions within Paramount Global about any changes to CBS’s programming have yet to heat up.

An ABC representative did not respond to Deadline’s request for comment on the company’s primetime prospects.