NBC Broadcast Chairman Ted Harbert opened his company’s upfront presentation taking a swipe at Dish Network, Nielsen, and even — very gently — advertisers themselves. He told the Radio City Music Hall audience that Dish Network’s new Auto Hop DVR feature, which enables viewers to automatically jump over ads in recorded shows, is “an insult to our joint programming, and I’m against it.” Many analysts have wondered whether broadcasters will ask the courts to rule that the feature violates their copyrights. Harbert also told advertisers that Nielsen needs to iron out the kinks in its ability to count viewers who watch TV via broadband, including on iPads and other tablets. “You want these answers and for the amount of money you’re spending, you deserve them.” The exec added that advertisers should evaluate NBC’s schedule year-round, not just the in 39 weeks from September through May. About 60% of the network’s summer shows are original, so it “isn’t just repeats anymore.” Noting that cable channels are evaluated year round he says, “let’s talk about it.” He also wants to change the way audience size is calculated. He’d like to include people who watch a show as much as seven days after it first airs, up from the current standard of three days. Harbert says that NBC is investing $15B on sports including the Olympics, we well as millions on local TV newscasts, and more on first run shows. “If we’re going to spend all this money on content it has to be measured and monetized.” He adds that his network can do its part with promotion. “When Comcast and NBC merged some feared we’d be too big to work together toward a common goal.” But with 97 properties in the company’s asset mix, “no one can do what we do. It’s kind of awesome to see.”


You can not stop progress! How many articles are going to be written and how many talks are going to be had about the changing medium and landscape of network and cable TV before actual thinking outside the box in new and relevant ways happen? That conversation is constantly being sidestepped and avoided and then networks complain when stuff like this happens. It’s inevitable.
Of course satellites, dvrs, tivos, all that fun stuff, they’re going to figure out ways to sidestep advertisers/commercials because the people don’t want that. So figure something new out nets. Break ground! Reinvent the landscape!
“slow clap’ AMEN. Fewer people are watching live television then they were ten years ago. Its time to to find a way to adapt to DVR and Online Viewing as a way of gaining revenue
Like how?
Put more ads in the show itself, either by placing them obnoxiously at the bottom of the screen or making product placement more frequent and obvious?
Build shows around products, which is easier to do with reality TV like Extreme Makeover: Home Edition than with scripted TV?
I’m curious whether anyone here has creative thoughts for new revenue strategies. Social media games (which no doubt have far lower production budgets, but still…) make a great deal of money from virtual goods. People playing the games are motivated to use actual money to buy goodies to enhance their gameplay experience.
As TV inevitably migrates to the internet, there will be no barriers to interactivity. Are there ways to integrate virtual goods into scripted drama? Reality TV can go that direction easily, just look at Fashion Star. But how would this work with scripted TV?
Maybe viewers can somehow spend money to help a character who is in trouble in the plotline. Could be even ten cents, some sort of microtransaction that nobody thinks twice about. Multiplied by millions, ten cents could be real money, especially if there are multiple opportunities per episode, week in, week out. Ten cents is a small amount to give viewers the illusion of participating in a TV show.
It goes without saying that this sort of thing would disrupt the value of a well-written scripted story, under the control of the writers. But the economics of TV will probably force it to happen. There’s no stopping technological ways of thwarting the ad-based business model. The smart move is to use technology to find other means of making a buck.
But these geniuses (or at least the people paying for the ad space) still haven’t figured out how to create advertising that is visually interesting enough to circumvent the freaking mute button.
Against dvr’s they’re so overmatched by the technology it’s kind of sad.
They literally don’t have any hope of surviving without a court ruling that wouldn’t last a month.
Exactly. We’re fast approaching 20 minutes of advertising in an hour long broadcast program. I don’t know how anyone can stand to watch television without a DVR.
Unfortunately, they WILL find other ad potential – those little animated station promos that constantly threaten to distract you from the program you are currently viewing will become larger and LARGER
I don’t see the big difference between what Dish’s DVR does and an Pop-Up Ad blocker on your web browser.
That said, as viewers become more successful at “skipping the commercials”, we are going to see an even greater level of product placements within the programming. Personally, I prefer a block of :30 commercials every 12 minutes to unsubtle product placements (I’m looking at you, Survivor).
I don’t understand why he’s complaining. A lot of people rarely watch shows live. They DVR and then fast forward through the commercials. It’s it basically the same thing?
Thank god, for Dish… When you have a solid 5 minutes of commercials in one break on Movies and 1/2 hour shows are literally down to 18 minutes. I hate commercials and don’t even listen to what they are selling due to the fact the are inane. Networks better see the light that DVR’s are the future ,let alone been in use for almost 10 yrs. Maybe they will stop cancelling Great shows that are being DVR’ed.
Lower the cost of the shows by a lot of product placement, every show should have 10 to 20 product placements, let the advertisers embed their products in each show whether its drama or comedy.
Gone are the days when the family gathered around the television every night from 8 to 11. Gone are the days when the networks themselves were brands people would stick with. We get our TV WHEN we want it, WHERE we want it and from WHOM we want it. Are the networks just too stodgy to understand this?
By the way, I’m much older than the coveted 18-49 demographic and if I understand the changes in television-watching, why can’t the network and advertizing execs get it?
On another article on this site, I learned that, as an older person, I was supposed to be less receptive to trying new products and brands. I replace my car every 2 years, my cell phone, etc. I had no idea that I wasn’t supposed to try new products. I’ll keep that in mind when I shop for my next car this year. That should narrow down my choices some, make it easier.
Harbert is a Luddite. This is the same knee-jerk reaction we’ve heard in the past about cassettes (for music), then VCRs, now DVRs. Media companies need to embrace tech change and come up with new business models. Resisting change never works.
People will still see ads if they watch it live or later in the evening. That’s all you people care about. And even if it didn’t Auto Hop, I’m still hitting that skip button the second your stupid ads interrupt my shows. I’m paying you through my subscription already and DISH is playing your station’s monopolistic re-transmission fees, which is the biggest load you people have the audacity to demand and make your viewers suffer when the providers won’t march to the beat of your drum.
Three cheers for “The Hopp-ah!”
unfortunately for those who love to zap commercials, the advertisers are watching you. They are running away and so are their dollars which is one reason network television has been inundated with cheap reality shows. They can’t afford to spend the dollars when their return on investment is shot by a HOP device. Decide what you want, cheap crap from your little computer screen or better quality shows from the networks. Oh and the Cable Networks are killing the Broadcasters right not but just wait, even they are pulling more expensive programming off due to dvrs and other devices killing their ratings and commercial viewing.
It would also be nice if you did not charge your customers that already have dish almost $1000 to get the hopper to upgrade their current service.
The new Auto Hop from Dish is great! Keep in mind that it’s not changing anything about watching live TV. If the shows are good enough to be “can’t miss” then everyone will view the show live and watch all the commercials. When I am trying to “catch up” on shows I missed throughout the week, the last thing I want to do is sit through all of the commercials. I want to watch as much programming, commercial free, as possible in the smallest amount of time possible!
Do people really have that much of an issue with holding down fast forward for a few seconds?
The ad’s pay for the Multi million dollar shows, I’m not saying watch the ad’s but fast forward over them. Microwave some popcorn or something.
I totally agree that the stations need to adapt or risk loosing relevance. Netflix is currently worth diddly compared to what it used to be, one of the big stations should buy it/partner to produce exclusive first run content as well as being available (with a couple of mandatory ad’s before watching) shows as soon as they are shown on tv.
People have always dodged commercials during TV programming since the first days of television. The commercial block was used to grab snacks, converse, or visit the bathroom. Since the introduction of VHS, people have fast-forwarded through ads. Ad Blaster is just another tool of avoidance.
In France, commercials are played at the end, and advertisers were forced to get more creative. And in fact, the commercials improved to the point they’re more entertaining than the TV programming, often garnering more ratings than the show they sponsor! During the Super Bowl, the non-football audience tunes in just to catch the commercials, which should be telling sponsors and TV execs something about what they can do.
With consumers contantly bombarded with ads, even in services they pay for like internet access, a new marketing model is long overdue, and this is an opportunity for TV to lead the way in developing a new model.
Mr. Herbert is right about changing how audience size is calculated, but the Big Four need to also change how they sell and use the audiences they do get. Times have changed; marketable audiences no longer fit the definition from 20 years ago, and the Big Four have lost audience to cable networks who’ve used audience segmentation strategies successfully. Case in point: the profile and buying preferences of the over-40 viewer is more closely aligned with the 18-49 demographic than their parents were. Mr. Herbert is also correct on time shifting habits and the use of other media to watch TV programming, like tablets and laptops. Nielsen does need to do a better job of capturing the new means of watching television and the new viewing habits of the audience…often time shifting in a 7-10 day window.
Networks could also do a better job of allowing sufficient time for new shows to build an audience. Some of television’s most highly regarded classics and most successful shows took a full season or longer to become hits. As in the case of Awake, it’s clear that some shows, with good potential revenue generating potential for networks, are often cancelled too soon, and this means networks are missing some great properties and audience capture opportunities. This Big Four practice of cancelling a show after three episodes is frustrating and ridiculous.
With the ability to record one show while watching another, new ratings techniques are also needed to capture audience viewership habits as well. Nielsen doresn’t do a good job capturing time shift ratings for shows that were recorded while the viewer is watching another favorite show. The current model is based on the fact that a viewer is choosing one network’s show over another in the same time slot, and today, that is NOT true. If a viewer has two TV’s and recording devices, or a satellite DVR with the capability to watch on one channel and record on another, the current rating system is already not reflecting accurate numbers, which further demonstrates Mr. Herbert’s point.
Mr. Chairman, at least half of your programming is crap, the commercials are insulting and you treat your customers like idiots. Comcast constantly raises prices on customers and the “no one can do what we do” statement is quite true, you deliver crappy programming to lots of people while charging them outrageous prices. Good for you.
I think the way to go is unobtrusively, integrated product placement. It’s win-win. The advertisers still get their products seen and the viewers get a longer, uninterrupted show.
On the one hand, we’re all paying HUGE for subscription tv (whether it’s cable or satellite) and resent having to watch ads too. On the other hand, I never do the 30-sec skip to bypass ads, I FF through ‘em and stop to view some because they’re either entertaining or informative. I think most of us operate that way.
Dish is a multi-billion dollar corporation with millions of customers, I have no way of knowing but one would assume the “Auto Hop” was thoroughly vetted through legal. Whether Dish uses this on the other channels? probably…eventually.
I believe any perceived loss of revenue by networks because of “Auto Hop”, real or otherwise will be placed squarely on the backs of the customers…as usual. I’m looking at rates for locals to go up the next time around.
This is such a non-issue. The only difference between AutoHop and the typical DVR/TiVo is that the latter requires the viewer’s affirmative action to fast-forward through the ads while the former does it automatically once programmed to do so. I see no distinction between the two that could support a copyright argument by the networks. This is the next big thing that will be available to all cable/satellite subscribers within the next year or two (assuming there are no patent-exclusivity issues).
If the networks on counting on the inertia of the viewer who has DVR’d programming to fail to fast-forward, they’re delusional. The fast-forward mechanisms have become so sophisticated on most remotes that you can pretty much skip the commercials with two or three clicks and not have to backtrack. Anybody who has bothered to record is skipping the ads.