NBC in Trouble

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Case Details:

Case Code : BSTR233
Case Length : 24 Pages
Period : 1990-2006
Organization : NBC
Pub Date : 2006
Teaching Note : Available
Countries : US
Themes : Failure of Strategy | Revival | Competition | Trends
Industry : Media and Television Broadcasting

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

NBC acquired these rights after a gap of seven years. NBC was hopeful that the NFL games along with its new shows would boost its ratings in 2006.

Walter Podrazik, Chicago-based writer and communications and logistics consultant said, "Getting NFL football onto the NBC primetime lineup is a major accomplishment.

If they have that as an initial lure, it's not that they're one hit away from being the No. 1 network, because they're a little too far behind.

But if they can start getting clusters of shows that spill over and get people interested in other shows, then they build in something that gives them, over two or three years, the potential for a comeback.⁸

Background Note

In 1919, Radio Corporation of America (RCA) was created to market radio receivers produced by GE, Westinghouse, AT&T and United Fruit Company. In 1926, RCA started the National Broadcasting Company (NBC) for radio broadcasting. In 1927, RCA divided NBC into NBC-Red for broadcasting entertainment and music programs, and NBC-Blue for cultural and news items.

In the late 1920s, RCA also began working on television broadcasting and started putting its profits from radio into television R&D. In 1931, NBC began experimental television broadcasts from the Empire State Building in New York.

In 1932, differences among the four companies resulted in an independent RCA with NBC coming under its control.

RCA continued funding NBC's television research and in 1939, NBC started regular television broadcasts. RCA slowly became a major producer and marketer of radio receivers and radio content. The NBC network also gained significant popularity and achieved a dominant position in the broadcasting business...

Excerpts >>

8] Wilkerson, David B. "NBC's Bid To 'Heist' ratings Gold," www.marketwatch.com, February 06, 2006.