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Staying	
  Profitable	
  and	
  Relevant	
  in	
  an	
  Evolving	
  Media	
  Landscape	
  
A	
  Case	
  Study	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Michael	
  Williams	
  
13	
  April	
  2015	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Introduction
The television set, once mainstay in the American living room, is going to the
wayside. According to Nielsen’s Total Audience Report, nearly 2.6 million American
households are “broadband only,” indicating they do not subscribe to cable or have a
broadcast signal.1
This is double the percentage from the same period in 2013.
Approximately 56% of households have access to Netflix, Amazon Prime Instant Video,
and/or Hulu Plus—streaming services boasting thousands of movies and television
series.2
Live television usage has fallen consistently over the past three Q4 tallies. On
average, adults 18+ watch 4 hours and 51 minutes of live television per day, down 13
and 19 seconds from 2013 and 2014, respectively. Smartphones are following the
opposite trajectory; daily usage has increased 18 minutes from its 2013 average.
These fluctuations have had profound affects on network television ratings.
Prime-time network ratings are down 12 percent from the same period in 2014,
according to a March 10 memo by media analyst Michael Nathanson.3
Streaming video
services are now major players in television, proving they can compete for quality
content with network stations. But how can NBC stay relevant amidst innovation? With
slight repositioning, NBC will continue to make the world “More Colorful.”
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1
Victor Luckerson. "Here's Proof Television Is Slowly Dying."
2
Dounia Turrill. "Total Audience Report."
3
Claire Atkinson. "TV Ratings See Double-digit Declines for Fifth Straight Month."	
  
Research
To effectively grasp the magnitude of this predicament, we must compare
network television ratings to streaming viewership data. NBC’s ratings are available via
Nielsen; however, Netflix and Amazon Prime do not provide concrete streaming ratings.
Network television is dependent on ratings for advertising. Since Netflix and Amazon
Prime are built on subscribers, Nielsen ratings are inconsequential to its business
model. Other tracking methods are necessary to log this data:
1. Social Media Analytics
a. NBC can compare impressions, engagements and reach amongst its own
series and those on streaming networks.
2. Media Impressions
a. NBC can compare mentions of their series and network as a whole to
Netflix and Amazon Prime in print and online publications.
Questions to Ask:
1. What is America watching?
2. What channels are they watching?
3. Why are they using streaming media? Is it due to convenience, content and/or
price?
4. What is your opinion of NBC?
5. Do you watch NBC or other broadcast networks?
6. Do you watch live television?
Methods
1. Online Survey
2. Focus Groups
3. Nielsen ratings
Objectives
1. Impact:
a. Informational
i. Increase awareness of NBC series among the 18 to 49 key
demographic
ii. Increase awareness of methods of watching NBC series, including
NBC.com, NBC app, and on-demand services
b. Attitudinal
i. To create favorable public opinion of NBC and its series among the
key demographic
ii. To reverse negative attitudes and associations of NBC as an
outdated and tired entity
iii. To create favorable attitude for NBC.com and its streaming services
c. Behavioral
i. Increase viewership of NBC primetime programs
ii. Increase traffic to NBC webpages and applications
2. Output:
a. Send news releases on new television series to major media outlets for
media placement
b. Announce slate of series, new programs, and technology features at NBC
Upfront presentation in May
Program
Our tactics are dependent on an overarching strategy to focus on online media
and streaming platforms, to rebrand as a contemporary network applicable to the
millennial lifestyle, and to disassociate from the current boundaries of television.
1. Online Presence
a. Online Streaming Platform
i. Launching an online streaming platform will allow viewers to
watch and catch up on their favorite NBC series on their own
time. CBS recently launched “CBS All Access”- a standalone
streaming service that provides full seasons of current and past
daytime and primetime shows for a monthly fee. The NBC
platform will provide full access to the NBC library of past and
present series for a monthly fee. The platform will be fully
integrated with a partner mobile and tablet application, in addition
to compatibility with digital media players such as Amazon Fire
TV and Roku. Whereas Netflix and Amazon Prime have access to
past seasons of some NBC series, the NBC streaming platform
will stream current episodes of their favorite series. Fans are no
longer bound to specific hours on specific nights to watch their
favorite series
2. Give Audiences What They Want/ Be Mindful of Trends
a. Nostalgia
i. In recent years, audiences and Internet users have had an
immense voice in television programming. Betty White hosted
SNL after a Facebook petition went viral. Scandal, an ABC series
about a Washington crisis management expert, premiered in 2012
to tepid reviews and mediocre ratings. The show became a
bonafide hit in its second season due to fans storming Twitter and
live-tweeting episodes, earning the title “the show that Twitter
built.”4
NBC needs to track social media to see what viewers
want. Nostalgia is currently in vogue and has encroached within
television content. Reboots of classic television series including
The Odd Couple, Hawaii Five-O, Charlie’s Angels, Dallas, 24 and
Knight Rider have flooded primetime to varied success. NBC is
currently reviving two of its most famous series—Heroes and
Coach—to feed the nostalgic appetite of its viewers. Continuing
this trend, in addition to following and acting upon others, will
drive viewers to NBC.
3. Focus on What We Do Best
a. Reality TV
i. Reality television is cheap compared to scripted fare; there are no
actors, minimal union requirements, and production costs are
drastically decreased. The model, featured in shows like The
Voice and American Idol, is dependent on audience participation
during live episodes. Netflix is an inappropriate medium for this
programming, and there is clearly still a demand for the genre.
b. Live Events
i. Streaming services certainly have advantages over network
television, but they cannot replicate experiencing a live event.
Whilst our goal is to adapt to streaming, certain events cannot be
replicated. The shared experience of a live event is still in
demand, proven by the success of SNL 40 and The Sound of
Music Live! Twitter impressions reached 69 million during The
Sound of Music Live! And skyrocketed past 107 million a year
later during Peter Pan Live!.5
SNL 40 reached over 23 million
viewers and posted a 7.8 rating in the 18 to 49 key demographic.
The special generated 1.3 million tweets, which were seen 188
million times in the three hours prior to and after the show. This
serves as the highest Twitter TV impressions of any TV series of
all time.6
There is clearly a demand for live events, especially
amongst the coveted 18 to 49 demographic. Since this
demographic is abandoning network television in favor of
streaming media, it is important to cater to their interests.
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
4
Mary McNamara. "'Scandal' Has Become Must-tweet TV."
5
Natalie Jarvey. "'Peter Pan Live!' vs. 'Sound of Music.'"
6
Tim Kenneally. "'SNL' 40th Anniversary Special Breaks Twitter Records."	
  
4. Change the Model
a. Scheduling
i. The network schedule is typically divided into three sections; fall,
midseason, and summer. Netflix has dismantled this schedule
and releases its series sporadically throughout the year. Netflix
released the first seasons of Marco Polo in December, House of
Cards in February, Orange is the New Black in July, and
Daredevil in April. Viewers live month to month, not by trimesters.
Breaking this antiquated model will allow our series to stand out
amongst a flood of competing content.
b. Adapt the Cable Model
i. Whereas a 22-episode season is the broadcast network standard,
the cable model features 13 episodes. Major Holidays, March
Madness, and other special events typically interrupt the
broadcast standard. Some viewers never return from the breaks.
Thirteen episodes can air consecutively, leaving no opportunity
for fatigue. A 22-episode season requires 8 to 9 months of filming,
whereas the cable model only requires about 5.7
Celebrated film
talent is particularly attracted to this model, like Matthew
McConaughey on True Detective, Claire Danes on Homeland,
and Vera Farmiga in Bates Motel. Adopting this model will lower
production costs, attract notable talent, and create demand rather
than bandaging fatigue.
5. Extension of Brand
a. Produce Rather Than Distribute
i. We can change our ways, but we cannot ignore streaming media.
Their audience is often more appropriate for programming, but
NBC should still participate in the game. NBC produced and
originally planned to air The Unbreakable Kimmy Schmidt, but
sold the quirky and off-brand sitcom to Netflix. Though the show
airs on Netflix, NBC owns it, meaning they profit on its success.
The show matches the Netflix brand and its clientele, so it is a
win-win on both parts. Continuing this trend will allow NBC to
participate in streaming media without abandoning its own brand.
Evaluation
This plan involves a lot of moving parts that will unravel over time, rather than
overnight. We will, thus, have to analyze social media impressions, Nielsen ratings, and
usage of the streaming platform. Each part and tactic falls under an overarching
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
7	
  Hinckley, David. "TV Is Moving toward Shorter Seasons."	
  
strategy, so individual success or failure is not indicative of overall success. That being
said, we will monitor daily usage of the app, media placements of our press release
announcements, live television statistics, and interactions on social media. We will
specifically track opinions and activity amongst the 18 to 49 key demographic. To
accurately gauge or progress, NBC will send out Internet surveys to track recall, public
opinion, and overall media activity
Conclusion
The decline of television did not occur overnight, nor will its recovery. However,
the decline of television does not have to usher in the demise of NBC. Our brand can
adapt to contemporary trends and disassociate itself from outdated technologies. Our
network has been a mainstay in American culture since 1926, and will continue to be.
We must first adapt to, rather than ignore, streaming media. We will drive our target
demographic to NBC products, as they infiltrate modern norms without compromising
the NBC name. Viewers who prefer more traditional methods of television will enjoy our
new broadcast schedule and new season model, whereas modern audiences will enjoy
the convenience of our streaming application. We must balance our past while looking
toward the future.
Works Consulted
Atkinson, Claire. "TV Ratings See Double-digit Declines for Fifth Straight Month." NY
Post. 13 Mar. 2015. Web. 17 Apr. 2015.
Hinckley, David. "TV Is Moving toward Shorter Seasons." NY Daily News. 7 July 2013.
Web. 17 Apr. 2015.
Jarvey, Natalie. "'Peter Pan Live!' vs. 'Sound of Music.'" The Hollywood Reporter. 10
Dec. 2014. Web. 17 Apr. 2015.
Kenneally, Tim. "'SNL' 40th Anniversary Special Breaks Twitter Records." The Wrap. 16
Feb. 2015. Web. 17 Apr. 2015.
Luckerson, Victor. "Here's Proof Television Is Slowly Dying." Time. 3 Dec. 2014. Web.
17 Apr. 2015.
McNamara, Mary. "'Scandal' Has Become Must-tweet TV." Los Angeles Times. 11 May
2013. Web. 17 Apr. 2015.
Turrill, Dounia. "Total Audience Report." Nielsen. 1 Mar. 2015. Web. 17 Apr. 2015.

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CaseStudyNBC.pdf

  • 1.       Staying  Profitable  and  Relevant  in  an  Evolving  Media  Landscape   A  Case  Study                 Michael  Williams   13  April  2015                              
  • 2. Introduction The television set, once mainstay in the American living room, is going to the wayside. According to Nielsen’s Total Audience Report, nearly 2.6 million American households are “broadband only,” indicating they do not subscribe to cable or have a broadcast signal.1 This is double the percentage from the same period in 2013. Approximately 56% of households have access to Netflix, Amazon Prime Instant Video, and/or Hulu Plus—streaming services boasting thousands of movies and television series.2 Live television usage has fallen consistently over the past three Q4 tallies. On average, adults 18+ watch 4 hours and 51 minutes of live television per day, down 13 and 19 seconds from 2013 and 2014, respectively. Smartphones are following the opposite trajectory; daily usage has increased 18 minutes from its 2013 average. These fluctuations have had profound affects on network television ratings. Prime-time network ratings are down 12 percent from the same period in 2014, according to a March 10 memo by media analyst Michael Nathanson.3 Streaming video services are now major players in television, proving they can compete for quality content with network stations. But how can NBC stay relevant amidst innovation? With slight repositioning, NBC will continue to make the world “More Colorful.”                                                                                                                 1 Victor Luckerson. "Here's Proof Television Is Slowly Dying." 2 Dounia Turrill. "Total Audience Report." 3 Claire Atkinson. "TV Ratings See Double-digit Declines for Fifth Straight Month."  
  • 3. Research To effectively grasp the magnitude of this predicament, we must compare network television ratings to streaming viewership data. NBC’s ratings are available via Nielsen; however, Netflix and Amazon Prime do not provide concrete streaming ratings. Network television is dependent on ratings for advertising. Since Netflix and Amazon Prime are built on subscribers, Nielsen ratings are inconsequential to its business model. Other tracking methods are necessary to log this data: 1. Social Media Analytics a. NBC can compare impressions, engagements and reach amongst its own series and those on streaming networks. 2. Media Impressions a. NBC can compare mentions of their series and network as a whole to Netflix and Amazon Prime in print and online publications. Questions to Ask: 1. What is America watching? 2. What channels are they watching? 3. Why are they using streaming media? Is it due to convenience, content and/or price? 4. What is your opinion of NBC? 5. Do you watch NBC or other broadcast networks? 6. Do you watch live television? Methods 1. Online Survey 2. Focus Groups 3. Nielsen ratings Objectives 1. Impact: a. Informational i. Increase awareness of NBC series among the 18 to 49 key demographic ii. Increase awareness of methods of watching NBC series, including NBC.com, NBC app, and on-demand services b. Attitudinal
  • 4. i. To create favorable public opinion of NBC and its series among the key demographic ii. To reverse negative attitudes and associations of NBC as an outdated and tired entity iii. To create favorable attitude for NBC.com and its streaming services c. Behavioral i. Increase viewership of NBC primetime programs ii. Increase traffic to NBC webpages and applications 2. Output: a. Send news releases on new television series to major media outlets for media placement b. Announce slate of series, new programs, and technology features at NBC Upfront presentation in May Program Our tactics are dependent on an overarching strategy to focus on online media and streaming platforms, to rebrand as a contemporary network applicable to the millennial lifestyle, and to disassociate from the current boundaries of television. 1. Online Presence a. Online Streaming Platform i. Launching an online streaming platform will allow viewers to watch and catch up on their favorite NBC series on their own time. CBS recently launched “CBS All Access”- a standalone streaming service that provides full seasons of current and past daytime and primetime shows for a monthly fee. The NBC platform will provide full access to the NBC library of past and present series for a monthly fee. The platform will be fully integrated with a partner mobile and tablet application, in addition to compatibility with digital media players such as Amazon Fire TV and Roku. Whereas Netflix and Amazon Prime have access to past seasons of some NBC series, the NBC streaming platform will stream current episodes of their favorite series. Fans are no longer bound to specific hours on specific nights to watch their favorite series 2. Give Audiences What They Want/ Be Mindful of Trends a. Nostalgia i. In recent years, audiences and Internet users have had an immense voice in television programming. Betty White hosted
  • 5. SNL after a Facebook petition went viral. Scandal, an ABC series about a Washington crisis management expert, premiered in 2012 to tepid reviews and mediocre ratings. The show became a bonafide hit in its second season due to fans storming Twitter and live-tweeting episodes, earning the title “the show that Twitter built.”4 NBC needs to track social media to see what viewers want. Nostalgia is currently in vogue and has encroached within television content. Reboots of classic television series including The Odd Couple, Hawaii Five-O, Charlie’s Angels, Dallas, 24 and Knight Rider have flooded primetime to varied success. NBC is currently reviving two of its most famous series—Heroes and Coach—to feed the nostalgic appetite of its viewers. Continuing this trend, in addition to following and acting upon others, will drive viewers to NBC. 3. Focus on What We Do Best a. Reality TV i. Reality television is cheap compared to scripted fare; there are no actors, minimal union requirements, and production costs are drastically decreased. The model, featured in shows like The Voice and American Idol, is dependent on audience participation during live episodes. Netflix is an inappropriate medium for this programming, and there is clearly still a demand for the genre. b. Live Events i. Streaming services certainly have advantages over network television, but they cannot replicate experiencing a live event. Whilst our goal is to adapt to streaming, certain events cannot be replicated. The shared experience of a live event is still in demand, proven by the success of SNL 40 and The Sound of Music Live! Twitter impressions reached 69 million during The Sound of Music Live! And skyrocketed past 107 million a year later during Peter Pan Live!.5 SNL 40 reached over 23 million viewers and posted a 7.8 rating in the 18 to 49 key demographic. The special generated 1.3 million tweets, which were seen 188 million times in the three hours prior to and after the show. This serves as the highest Twitter TV impressions of any TV series of all time.6 There is clearly a demand for live events, especially amongst the coveted 18 to 49 demographic. Since this demographic is abandoning network television in favor of streaming media, it is important to cater to their interests.                                                                                                                 4 Mary McNamara. "'Scandal' Has Become Must-tweet TV." 5 Natalie Jarvey. "'Peter Pan Live!' vs. 'Sound of Music.'" 6 Tim Kenneally. "'SNL' 40th Anniversary Special Breaks Twitter Records."  
  • 6. 4. Change the Model a. Scheduling i. The network schedule is typically divided into three sections; fall, midseason, and summer. Netflix has dismantled this schedule and releases its series sporadically throughout the year. Netflix released the first seasons of Marco Polo in December, House of Cards in February, Orange is the New Black in July, and Daredevil in April. Viewers live month to month, not by trimesters. Breaking this antiquated model will allow our series to stand out amongst a flood of competing content. b. Adapt the Cable Model i. Whereas a 22-episode season is the broadcast network standard, the cable model features 13 episodes. Major Holidays, March Madness, and other special events typically interrupt the broadcast standard. Some viewers never return from the breaks. Thirteen episodes can air consecutively, leaving no opportunity for fatigue. A 22-episode season requires 8 to 9 months of filming, whereas the cable model only requires about 5.7 Celebrated film talent is particularly attracted to this model, like Matthew McConaughey on True Detective, Claire Danes on Homeland, and Vera Farmiga in Bates Motel. Adopting this model will lower production costs, attract notable talent, and create demand rather than bandaging fatigue. 5. Extension of Brand a. Produce Rather Than Distribute i. We can change our ways, but we cannot ignore streaming media. Their audience is often more appropriate for programming, but NBC should still participate in the game. NBC produced and originally planned to air The Unbreakable Kimmy Schmidt, but sold the quirky and off-brand sitcom to Netflix. Though the show airs on Netflix, NBC owns it, meaning they profit on its success. The show matches the Netflix brand and its clientele, so it is a win-win on both parts. Continuing this trend will allow NBC to participate in streaming media without abandoning its own brand. Evaluation This plan involves a lot of moving parts that will unravel over time, rather than overnight. We will, thus, have to analyze social media impressions, Nielsen ratings, and usage of the streaming platform. Each part and tactic falls under an overarching                                                                                                                 7  Hinckley, David. "TV Is Moving toward Shorter Seasons."  
  • 7. strategy, so individual success or failure is not indicative of overall success. That being said, we will monitor daily usage of the app, media placements of our press release announcements, live television statistics, and interactions on social media. We will specifically track opinions and activity amongst the 18 to 49 key demographic. To accurately gauge or progress, NBC will send out Internet surveys to track recall, public opinion, and overall media activity Conclusion The decline of television did not occur overnight, nor will its recovery. However, the decline of television does not have to usher in the demise of NBC. Our brand can adapt to contemporary trends and disassociate itself from outdated technologies. Our network has been a mainstay in American culture since 1926, and will continue to be. We must first adapt to, rather than ignore, streaming media. We will drive our target demographic to NBC products, as they infiltrate modern norms without compromising the NBC name. Viewers who prefer more traditional methods of television will enjoy our new broadcast schedule and new season model, whereas modern audiences will enjoy the convenience of our streaming application. We must balance our past while looking toward the future.
  • 8. Works Consulted Atkinson, Claire. "TV Ratings See Double-digit Declines for Fifth Straight Month." NY Post. 13 Mar. 2015. Web. 17 Apr. 2015. Hinckley, David. "TV Is Moving toward Shorter Seasons." NY Daily News. 7 July 2013. Web. 17 Apr. 2015. Jarvey, Natalie. "'Peter Pan Live!' vs. 'Sound of Music.'" The Hollywood Reporter. 10 Dec. 2014. Web. 17 Apr. 2015. Kenneally, Tim. "'SNL' 40th Anniversary Special Breaks Twitter Records." The Wrap. 16 Feb. 2015. Web. 17 Apr. 2015. Luckerson, Victor. "Here's Proof Television Is Slowly Dying." Time. 3 Dec. 2014. Web. 17 Apr. 2015. McNamara, Mary. "'Scandal' Has Become Must-tweet TV." Los Angeles Times. 11 May 2013. Web. 17 Apr. 2015. Turrill, Dounia. "Total Audience Report." Nielsen. 1 Mar. 2015. Web. 17 Apr. 2015.