UPDATE: Comcast Says It Will Keep Investing In NBCU As 2Q Earnings Fall Short Of Estimates

UPDATE, 6:45 AM: In this morning’s analyst call, NBCUniversal chief Steve Burke subtly dinged General Electric for its management of NBC until January, when Comcast took charge. He says the conglomerate hadn’t supplied the cash that’s “necessary to compete.” Burke says Comcast is changing that: “In general we see this year, and next year probably, as investment years.” The turnaround at primetime’s No. 4 broadcast network could take as long as four years, but “I’m confident we’ll get there.” Burke says Comcast has an initiative called Symphony to market NBCU programming across company assets including VOD and online. It increased the production and marketing budgets for The Voice several times after the company realized the talent contest would be a hit. The next season will debut right after the Super Bowl in February. Meanwhile, NBCU’s cable networks are ordering more original series including USA’s Suits and Necessary Roughness and Syfy’s Alphas. Comcast also is beefing up its TV stations’ local news. It’s adding 135 people at 10 stations including 40 reporters and 20 producers; five markets are building investigative units. Burke says the investments will pay off: With growing revenue from retransmission consent deals and license fees from online streaming services such as Netflix, “content is more valuable today than it was” when Comcast agreed to buy NBCU. He adds that despite the weak economy “we don’t see any signs of deceleration” in ad sales. CEO Brian Roberts echoed Burke’s enthusiasm but warned analysts that “we have to have realistic expectations.” Roberts added that while “there’s economic news that’s rattled the markets,” Comcast is still “investing and getting good financial results.”

PREVIOUS, 4:20 AM: Comcast generated 2Q net income of $1.02B, up 15.6% vs the same period last year, on revenues of $14.3B, up 50.5%. But earnings, at 37 cents a share, missed the 41 cent target among analysts who follow the company. They expected revenues to come in at $13.8B. Read More »

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TOLDJA! Steve Burke Becomes NBCU CEO

As far back as a year ago this October, I first reported that Comcast Corp COO/No. 2 Steve Burke would be running NBC Universal and replacing Jeff Zucker. And in November I explained that, because Burke would have his hands full there, … Read More »

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JEFF ZUCKER FIRED BY STEVE BURKE: Comcast “Wanted To Move On” After Merge; NBCU Chief Emails Staff About Forced Exit

BREAKING NEWS! 6TH UPDATE: Jeff Zucker decided to reveal this morning he’d been fired by Comcast because he’d just finished negotiating his severance package, insiders explain to me. So Zucker told reporters that the decision for him to leave as head of NBC Universal was made for him by Comcast COO Steve Burke 2 weeks ago during a face-to-face meeting. “He made it clear that they wanted to move on at the close of the deal and I was completely comfortable with that,” Zucker told his favorite journalist, Bill Carter of The New York Times. “We had both gotten to the same place.” It has long been expected that, once NBCU switched out of GE’s control where Zucker was inexplicably protected by CEO Jeffrey Immelt,  the savvy Comcast brass would recognize how badly the NBCU topper had “Zucked-up” his job. (I scooped how, during Zucker’s mishandling of the Conan O’Brien-Jay Leno Tonight Show situation, private emails went out from high-level executives at Comcast saying, “What a mess.”)

But General Electric, a company that used to prize only excellence, kept rewarding Zucker’s failures. Then again, Zucker was embarrassingly proud that he kept managing for margins, not programming for ratings. So NBC eventually stood for Nothing But Crap. When he got beat up by the media, he decided that the company should go to DEFCON 1 (the defense readiness condition representing expectation of an imminent attack) and set up a PR War Room filled with flacks to fight back. As a way to cover his ass in the event Comcast did kick him to the curb, Zucker earlier this year bizarrely sent up a trial balloon that he might run for public office instead of run NBCU. Now that he’s odd man out, no one is taking up a collection: Immelt bestowed on Zucker a new 3-year contract so Comcast had to negotiate a rich payout.

Zucker told senior staff later this morning it would be “business as usual” for him until Comcast took control of NBCU. But he ran to whine to NYT‘s Bill Carter, who’s generally recognized as a suck-up to network moguls. (Carter is writing a book about the Late Night Follies involving Conan O’Brien and Jay Leno and David Letterman that’s a sequel to his Late Shift. So the NYTimesman had worked overtime to ingratiate himself with Zucker.) Today, the NBCU chief described his forced exit as both “incredibly emotional” and “gut-wrenching” because he’d spent half his life at NBC. In previous interviews with journalists, Zucker had demonstrated considerable bravado and misplaced arrogance that “of course” he would run NBCU after Comcast took control of 51%. (He even made a bet with me that he’d still be NBCU’s media mogul two months after the merger. Hey, Jeff, I win!)

But today, Zucker backpeddled. “Look, I knew from the day this was announced that this was a possibility,” he told Carter. “I wasn’t going to shut the door on anything. But in the last nine months it became increasingly clear that they did want to put their own team in place — and I didn’t want to end up being a guest in my own house.”

What’s incredible, and demonstrates how much he’s still in denial, is that Zucker told Carter he did not detect “any particular reason” for Burke firing him beyond Comcast’s wanting to make a change.

There is no doubt that Zucker’s legacy in Hollywood will be as one of the most disliked executives ever to head a Big Media company. His rival moguls laughed at his humiliations. The agents and managers and lawyers treated him like a buffoon. Even his own NBC show 30 Rock and anointed late night comic Jay Leno made jokes at his expense every chance they got. And each time he made an error in judgment, which seemed like all the time, he never paid a price for his mistakes, which made ”Zucked” and “Zuckered” part of the media lexicon. That’s also why Zucker earned the moniker, ”Teflon Jeff”.

Zucker’s firing followed what I reported was a “charm offensive” he launched back in May. The NBCU chief tried to demonstrate he was a new and supposedly improved Zucker, a nicer Zucker, and not the thin-skinned humorless bully of a boss which the journalism and showbiz communities have come to know and dislike and ridicule. ”He’s being so nice to everyone, so friendly, a more lovable guy,” one top TV agent described Zucker to me after Universal boss Ron Meyer’s Easter party, then added presciently, “It’s because he knows he’s out.”

Indeed, the concensus was that Zucker’s charm offensive was really a defensive maneuver. It included taking full and sole responsibility for NBC broadcast network’s recent years in the ratings cellar. And failing to fire programming chief Ben Silverman a year earlier (though the boss still defended hiring that putz in the first place). And believing he could “reinvent” pilot season by getting away with spending little on new show development last year (though he defends spending heavily on this year’s pilot season). And installing Conan as Jay’s successor in late night wheen Leno was #1 and then putting Leno in primetime (though he defends replacing O’Brien as host of The Tonight Show).

Zucker was a wunderkind executive producer of The Today Show when, in December 2000, he was named NBC entertainment president to replace Garth Ancier, following a shaky start for the network that fall. But there were plenty of shaky fall launches for NBC under Zucker’s watch as NBC slipped from No. 1 to No. 4 in the ratings and failed to launch big noisy hit shows to succeed Friends and ER. Instead, Zucker embraced cheap and schlocky reality TV that undermined NBC’s quality brand. After a brief stint learning the ropes of the entertainment division where his biggest contribution was “supersizing” the network’s established Thursday comedies, Zucker quickly and surprisingly moved out and up. Eventually he replaced Bob Wright as CEO of NBC Universal. In that position, he presided over the downfall of the NBC broadcast network. He still can’t get it right. Even after spending enormously on primetime scripted development for this fall, NBC’s new lineup has been a mixed bag so far, with newcomers like The Event and Outsourced showing promise while Undercovers and Chase are lagging behind.

With nothing good to report ever about NBC Entertainment, Zucker liked to take credit for growing NBCU’s empire. The farflung cable division run by Bonnie Hammer remains a big revenue driver, providing 80% of NBCU’s $2.3 billion in profits for last year. But, really, Zucker by buying up cable properties (Oxygen, The Weather Channel, etc) has just been following the cable road mapped out by predeccessor Bob Wright to counter broadcast’s steep slide — yet taking credit for reinventing the wheel that drove NBCU there.

3RD UPDATE 8:10 AM: Still, the timing is a shocker. How bizarre that Zucker made the announcement to his staff this morning even though Comcast won’t clear regulatory hurdles until First Quarter 2011 at the earliest. Read More »

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