NBC 'Slashing its News Budget' as Viewers and Advertisers Flock to New Media
In another apparent win for the Internet and New Media, NBC Universal announced on Thursday (hat tip to Drudge) a restructuring of some of its on-air programming (emphasis mine throughout):
NBC Universal plans to cut US$750 million in operating expenses by the end of 2007 by eliminating employees, cutting back on scripted shows, and slashing its news budget, according to a report Thursday in the Wall Street Journal.
The moves come as more and more viewers and advertisers gravitate toward new media, NBC Universal chairman Bob Wright told the newspaper. He said the moves would restore the company to double-digit growth next year.
The article continued: “The expected savings follow three lacklustre years at NBC Universal, where operating profit fell 10 per cent in each of the past three quarters. The slumping results cut into GE earnings.”
The article concluded:
Zucker told the newspaper that scripted shows cost too much given the lack of advertiser interest.
NBC's cost-saving plan involves laying off people from the company's 11 news divisions, including on-air talent.
Sadly, the article didn’t address on-air talentless. Regardless, let the countdown begin.