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National Broadcasting Company Inc.

NBC's Sinking Ship: Loss of "Seinfeld" and NFL Football Spells Disaster

Strategic Insights

— 2 min read

As the king of the Nielsens, NBC's recent losses of both "Seinfeld" and NFL football have sent shockwaves through the network. The absence of these two mainstays will cripple the network's advertising revenue, with local commercial slots in "Seinfeld" sometimes reaching Super Bowl prices. NBC's general manager, Paul Catoe, admits that losing football in an NFL city is a significant blow, with the network now footing a $13 million an episode bill to keep its top-rated drama "ER" on the air.

Key Takeaways:

  • The loss of "Seinfeld" and NFL football will cost NBC millions in advertising revenue, with local commercial slots potentially reaching $10 million or more.
  • NBC has to shell out $13 million an episode to keep its top-rated drama "ER" for another season, a significant increase from previous costs.
  • The network's long-term relationship with football is at risk due to a bidding war with CBS, Fox, and ABC, with CBS paying $4 billion for eight years of AFC games and two Super Bowls.
  • NBC's star power, such as Jerry Seinfeld, Paul Reiser, and Helen Hunt, are uncertain about their future with the network, with some expressing a desire to go out on top.
  • The network's ratings dominance is being threatened by CBS and Fox, with NBC facing a potential drop to second place in total households and behind Fox in young adult viewers.
  • A study by the Center for Communication Policy at the University of California, Los Angeles found that violence on broadcast network series is down, but notes that "shockumentaries" such as "World's Scariest Police Chases" are a major contributor to violence.
  • NBC remains the top network in the Nielsen rankings, with five of the top six shows in the week following the study.

Statistics:

  • NBC spent $13 million an episode to keep "ER" on the air for another season.
  • The network lost both "Seinfeld" and NFL football, which was outbid by CBS, Fox, and ABC.
  • CBS will pay $4 billion for eight years of AFC games and two Super Bowls.
  • Fox will pay $4.4 billion for NFC games and three Super Bowls.
  • Disney will pay $1.15 billion per year to keep "Monday Night Football" on ABC and games on ESPN on Sunday nights.
  • Violence reports decreased on broadcast network series, from nine series in the 1994-95 season to two in the 1996-97 season.
  • The Center for Communication Policy study found that 96.7% of all violence on broadcast network series comes from "shockumentaries" such as "World's Scariest Police Chases".

Sources:

  • Catoe, Paul. General manager of NBC affiliate WFLA, Channel 8.
  • The Center for Communication Policy at the University of California, Los Angeles. Study on violence on broadcast network series.
  • Nielsen Media Research. Weekly Nielsen rankings.
  • ABC, CBS, NBC, and Fox. Joint study on violence on broadcast network series.

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