NBC Universal advertising & marketing assignments

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NBC Universal was created in 2004 from the acquisition of the Universal Studios movie and theme park business by television network NBC. For more than two decades, NBC had been a subsidiary of industrial giant General Electric, but disappointing performance by the merged business persuaded GE finally to cut its losses at the end of 2009. It agreed to transfer a controlling stake in the business to cable provider Comcast. That deal completed at the beginning of 2011, and Comcast bought out the remaining shares during 2013. NBC is still probably America's most celebrated television network but it rather lost its way between 2005 and 2014. Historically the #1 or #2 network by ratings as a result of such classic hit shows as Friends, Frasier, ER and The West Wing, NBC struggled for years to find new series to replace those long-running audience favourites. There has been a striking return to form under Comcast's ownership, with NBC rebounding from bottom place among the Big Four networks to #1 in the highly prized 18-49 adult demographic. For 2018/2019, NBC led that segment for the 3rd consecutive year, and was #2 in total viewers. 'Sunday Night Football' was once again the country's most watched regular show, with an average of 19.3m total viewers. (Sports is NBC's particular speciality: it also has exclusive live rights to the Olympics through 2032). Among the main broadcast networks NBC is also the leader by ratings in news coverage, with shows such as Today, Meet The Press and the Nightly News. Other top shows for the most recent season were 'This Is Us', 'Sunday Night Pre-Kick', 'Manifest', and 'AGT Champions' (all among the Top Ten), the trio of 'Chicago Fire', Chicago Med' and 'Chicago PD', and 'The Voice'. NBC Universal also controls Hispanic broadcast network Telemundo, as well as a large collection of cable strands including USA Network, CNBC, MSNBC, Bravo, Syfy, Oxygen and E! The division is set to launch its own OTT streaming service Peacock (after the famous NBC brand mascot) in 2020. It retains a 33% stake in the Hulu streaming service for the time being, but transferred full management control to Disney in 2019. Former Comcast COO Stephen Burke is CEO of NBC Universal. The business reported divisional revenues of $34.0bn in 2019, down slightly year on year (the previous year benefited from the 2018 Winter Olympics and the Super Bowl). EBITDA was $8.8bn. Cable Networks contributed the largest share of revenues - $11.5bn - with $10.3bn from broadcast networks.

Capsule checked 26th November 2019

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Adbrands Daily Update 25th Mar 2020: Every day under Coronavirus detonates new bombs for the global marketing and media industry. One of this week's biggest is the official postponement of the 2020 Tokyo Olympics for at least a year. That has devastating implications for Japan, of course, but also for all the Games' sponsors and for the broadcasters who have spent at least two years preparing for this major media event. Two of the most badly affected are NBC Universal which has broadcast rights for the US, and Discovery Inc's Eurosport which acquired rights for much of continental Europe. NBC has already sold a record $1.25bn of advertising inventory around the Games and must now find a way of managing the resulting hole in its budgets. Discovery faces a similar scramble. In a statement, NBC said the company "is actively working with our advertising partners to navigate this postponement, and we're exploring all options to best serve their brands and our consumers this year, and into 2021." The latest suspension comes in the wake of the cancellation of all US sports leagues, which have regularly provided NBC with the year's top-rated programming.

Adbrands Daily Update 16th Mar 2020: The repercussions from Coronavirus aren't just affecting retail outlets and public places. Netflix was one of several entertainment companies to halt TV production. All Netflix shows being filmed in the US and Canada are being suspended for at least two weeks, affecting dozens of different productions. Warner Bros TV Studios similarly is halting production on some 70 series, while NBC has hit pause on at least 35 shows. Movie theatres are also expected to close their doors, and several big releases have already rescheduled for later in the year.

Adbrands Daily Update 22nd May 2019: CBS was once again America's most watched broadcaster by prime time viewers, its 11th consecutive #1 position, and had the top three scripted shows. 'Big Bang Theory' was - for the last time ever - the country's #1 most watched scripted show, with an average of 17.3m viewers. 'NCIS' and 'Big Bang' spin-off 'Young Sheldon' were the #2 and #3 shows respectively. However, total numbers continued to slide: CBS averaged a total of 8.9m viewers nightly for the season ending this week, down from 9.0m last year and 9.6m the year before. Indeed, all networks except Fox reported year-on-year declines. NBC was the #2 network overall (7.2m viewers), and led the prized 18-49 demographic for the 3rd straight year. Its 'Sunday Night Football' was the country's single most watched regular show at 19.3m viewers. ABC and Fox were in 3rd and 4th place again by total viewers; Fox tied CBS for the #2 position in 18-49ers.

Adbrands Daily Update 11th Jan 2019: After prolonged contractual negotiations lasting more than two months, NBC finally confirmed the departure of celebrity anchor Megyn Kelly from the network almost a year and a half before expiry of her contract. As a result, NBC agreed to pay the entire outstanding balance, a sum of around $30m.

Adbrands Weekly Update 1st Nov 2018: NBC's big bet on celebrity anchor Megyn Kelly has turned out to be a major flop. The channel poached Kelly from Fox News last year with three-year contract worth a total of $69m. Her first venture for the channel, a Sunday magazine show, was cancelled after two months because of poor viewing figures and reviews. Instead, Kelly was handed a weekday morning slot: 'Megyn Kelly Today'. That too suffered from lower ratings than the show it replaced, but the whole experiment came crashing down last Tuesday when, during a discussion about Halloween costumes, Kelly appeared to question why "blackface" make-up on white kids should be considered insensitive or even racist. There was an immediate backlash, both from the media industry in general but also from within NBC. Though Kelly made a full apology later the same day, and again on the next day's show, she has not been seen on-air since and NBC late announced the cancellation of her show. The network is said to be in negotiations with her over the termination of her contract.

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