Grow the Top Line

Transcription

Grow the Top Line

NBC Update
Mark Vachon
September 20th, 2002
PrintSeptAnalystMeeting09_20Final 1
This presentation includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ materially
from these expectations due to changes in global economic, business,
competitive, market and regulatory factors. More detailed information about
those factors is contained in GE's filings with the Securities and Exchange
Commission.
Sept.AnalystMeeting09_20Final 2
NBC Highlights and
Strategic Priorities
A Diversifying Portfolio Of Media Assets
Network
Stations
Cable
Studios
Syndication
1992
2002
#3
#1, Telemundo, Paxson
20% of US
0 of 6 #1
CNBC, A&E,
History Channel
31% of US,
11 #1
11 Telemundo O&O Stations
CNBC, CNBC World,MSNBC,
Rainbow Media, A&E,
History Channel,
ShopNBC,
Telemundo International
30% Original
Primetime Hours
50% Original
Primetime Hours
None
NBC Enterprises, Hearst Production
JV, NBC/Hearst/Gannett JV
More Diverse Growth Engines Than Ever Before
Strategic Priorities
Network
Network
•• Hold
Hold #1
#1 Position
Position
•• Drive
Drive Syndication
Syndication Revenue
Revenue Stream
Stream
•• Capitalize
Capitalize On
On News
News Assets
Assets
•• Move
Move Sports
Sports From
From Loss
Loss Position
Position
Stations
• Expand Margins…Create a Bigger Pie
• Centralize Station Operations…Drive Productivity
• Develop the Premier Local Community Portals
Cable
• Enhance Programming
• Continue to Drive CNBC World
• Expand Distribution…CNBC and MSNBC
Telemundo
• Grow the Top Line
• Enhance Content Pipeline
• NBC Synergies
Positioned For Future Growth
Financial Update
Sales Trends
($ in Billions)
6-11%
CAGR
$5.2
~ $7.0
$5.6
$5.7
1999
2001
$3.9
$3.0
$3.1
1991
1993
1995
1997
2002
2002…A Record Year
Pretax Trends
($ in Billions)
~$1.6
22%
CAGR
$1.3
$1.4
$1.1
$0.7
$0.2
1991
$0.3
1993
1995
1997
1999
2001
2002
Long Term, Double Digit Pretax Growth
2002 Pretax Earnings
($ in Billions)
Highlights
15+%
Growth
~$1.6
+ Ratings Excellence…30-40% Prime Advantage
+ Pricing Up Across the Board
+ Stations Growing Share
$1.4
+ Continued Cable Distribution Growth
+ Telemundo Integration On Track
+ $150MM Cost Out in 2002…On Top of $350MM
Out in 2001…Cross-Divisional Productivity
+ 1,200 Heads Out From 2000 Levels
2001
2002
+ Shifting Resources to the Front Room to
Focus on Growth
Double Digit Earnings Growth in 2002…Record Year
Quality Earnings
Net Income
CFOA
~15%
2001
~15%
2002
2001
2002
NBC Business Model Has Attractive Cash Profile…
Generates Quality Earnings
Network
Power Of Network Television
Reaching Viewers A18-49 During Prime-Time...
1
= 21
Spots
Spot = 19
Spots
= 18
Spots
By Far the Most Effective Means to Reach
Broad Audiences Quickly
Network Versus Cable
Top Programs…# of A 18-49 Viewers (Millions)
Comedy
Drama
16.5
16.3
4X
4X
4.1
3.9
Six Feet Under
ER
Sex And The City
Friends
Network Ratings Far Outpace Cable
Primetime Performance
Season-to-Date MM Viewers, A18-49*
5.8
4.4
Friends
4.4
4.1
NBC Advantage
32%
32%
41%
Top 10
12.1
Friends 8:30
11.4
ER
10.8
Survivor
10.6
CSI
9.6
Will & Grace
9.5
Just Shoot Me
8.6
Everybody Loves Raymond
8.1
Law and Order
8.0
Frasier
6.8
*As of 9/01/02 - Regular Programs
NBC Maintains Advantage…32% Lead Over Nearest
Competitor…7 of Top 10 Shows on NBC
Summer Performance
MM Viewers , A18-49*
3.8
NBC Advantage
3.4
12%
Top 10 Summer-to-Date
3.1
23%
2.7
38%
American Idol – Tues.
7.1
American Idol – Wed.
6.8
Meet My Folks
6.7
Dog Eat Dog
6.4
CSI
6.4
Big Brother
5.6
Everybody Loves Raymond
5.4
Friends
5.3
Frasier – Thurs. 8:30
5.1
Law and Order
5.0
*As of 9/01/02 - Regular Programs
Overall Summer Viewership Down…NBC Still Leads with 12%
Advantage Over Nearest Competitor
Emmy Nominations
93
•
89
NBC Highlights
West Wing…21 Nominations,
Highest Network Drama
• Will & Grace…13
Nominations, Highest
Amongst Comedies
• Friends…11 Nominations,
Including Best Actress and
Two for Best Actor
50
35
33
• Frasier…9 Nominations,
Including Best Actor and
Best Supporting Actor
• SNL…4 Nominations,
Including Best Writing and
Best Variety
NBC Receives Highest Number of
Nominations of Any Broadcast Network
Fall Primetime Schedule
= NBC Ownership
= New Show
mon
8
8:30
Fear
Factor
9
9:30
10
Third
Watch
Crossing
Jordan
tue
In-Laws
In-Laws
wed
Ed
Just
Shoot
Me
Frasier
Hidden
Hidden
Hills
Hills
Dateline
NBC
thu
Friends
fri
sat
sun
American
American
Dreams
Dreams
Providence
Scrubs
Will & Grace
West
Wing
Law &
Order
Good
Good
Morning
Morning
Miami
Miami
ER
Dateline
NBC
NBC
Law &
Saturday OrderMovie
Criminal
Intent
Law &
Order SVU
Boomtown
Boomtown
11
86% of New Time Periods Are NBC Owned
News Performance
(Pretax $ In Millions)
i
i All Shows Retain #1
Position
$300
i
i Today Show #1 in A25-54
for 32 Consecutive Quarters
~20% AAGR
i
i Meet the Press ALSO #1 in
0
1995
2002
A25-54 for 32 Consecutive
Quarters…Ratings Leader
in All Key Demos
Strong Ratings & Programming Across All Shows
Today vs. Competition
Percentage of Morning News A25-54
55
Olympics
Start
50
50%
45
40
9/11 Attack
35
33%
30
25
20
Survivor II Starts
Survivor I Starts
17%
15
10
' 00
1Q
Through August 25, 2002
' 00
2Q
' 00
3Q
' 00
4Q
' 01
1Q
2Q
'01
3Q
'01
4Q
'01
1Q
'02
2Q
'02
TD
3Q
' 02
Today Show Holding 50% of Morning Audience
Evening and Weekend News vs. Competition
A25-54 Rating
#1
30% Lead
1.3
1.0
3.3
#1
14% Lead
2.9
0.8
2.3
* ‘02 season thru 8/25
MSNBC Lineup
Daytime
12-2 PM
2-4 PM
Curtis & Kuby
Buchanan & Press
w
Ne
Primetime
Nachman
7pm
w
Ne
• Promising
Reaction from
Critics
Donahue
8pm
w
Ne
• Talk/Opinion Format in Lively,
Entertaining Style
• Recognized Names…Left &
Right Points of View
Hardball
9pm
ve;
i
s
lu
e
Exc Tim
w
Ne
w
Ne
• 8pm Slot up 25% Launch to
Date vs 1H’02
• College Tours Start
9/18
– Ventura
– McCain
– H. Clinton
– Bush Sr.
Banfield on Location
10pm
w
Ne e
Tim
• October – Return to
Afghanistan
Reinvigorating Lineup and Talent
Stations
NBC Stations Overview
• 25 U.S. Stations. . . 31% Coverage…#1 Station in Puerto Rico
– 7 of Top 10 in General Markets
– 8 of Top 10 Hispanic Markets
• 40% Coverage of US Households
with Income of $75K+
• 11 NBC Stations Rank #1 in A 18 – 49
• Aggressive Promotion Strategy
• Recognized News and Programming Leader
A Tremendous Franchise
Growing the Top Line
Create a Bigger Pie…
…Capture a Bigger Slice
Media Spending. . . 14 O&O Markets
Total Media Spending
Our Traditional View
Other
Network
TV
78%
22%
Other
Media
74%
Other
Television
20%
$20+B
Opportunity
~6%
$7B in 14 Markets
$23B in 14 Markets
Generating $100MM of New Business In ’02
Monetizing the Internet
Grow Audience with
Compelling, Local Content
On-Air . . . On-Line Synergy
Convergence
•
•
•
•
•
•
•
•
Primetime
Daytime
Local News
Local Events
Local News, Weather, Traffic
Features, Local Events
E-commerce Transactions
Classifieds
HUT Levels
(May ’02)
Page Views
(May ’02)
8am
5pm
Complimentary On-Air/On-Line Audience
Web Site Expansion
WeatherBUG
FeedRoom
Tie-in to On Air Weather
Streaming Video
Linked to OnAir News
#1 Site in Breaking News
KnowMore
Tie-in to OnAir
Feature Stories
SHOPNBC
Use Brand to Create
Local Business Commerce
MSNBC
National News,
Weather & Sports
Compelling Local Content Drives
Audience…Delivering 50-60% Revenue Growth
Grow Audience with
Digitizing the Stations
Expand the Footprint
New Operating Model
PR
CH
SF
LA Hub
KNBC
KNSD
KNTV
KVEA
KWHY
KSTS
H
NY
T
PH
WA
CO
RA
LA
SD
BM
WCAU
WJAR
WVIT
WRC
WCMH
WVIT
WNBC
WNBC-S
WMAQ
WNJU
WSNS
Miami Hub
MI
Significant Productivity
NY Hub
WTVJ WVTM
KXAS WSCV
WNCN KXTX
Infrastructure Optimization
• 70% Headcount Reduction
• Centralize Operations (Graphics)
• ~$10MM Savings
• Drive Efficiencies (Lower Satellite Fees)
• <2 Year Payback
• Explore Remote Station Operations
• Integrating Telemundo / KNTV
• Service Expansion
Platform In Place...Huge Opportunities
B2B: Digitizing Customer Interface
Before
•
•
7 - 10 Manual Process Steps
Defect Ridden, Paper Process
–
–
•
•
•
Numerous Faxed Revisions To Customer
6+ Changes Per Contract (55K Contracts)
Incompatible Systems Means Double Entry
Account Exec’s in Office 67% of Time
After
•
•
•
•
Web-Based Application . . . Fully Integrated
Customer Self-Service… More Time Selling
Lowers Customer’s Transaction Costs
Forcing Industry Standard…DDS to Migrate
All Broadcasters
High Transaction Cost for Customer/NBC
Leading Industry With Game Changing Technology
Grow Audience with
Digitizing the Stations
Utilizing Telemundo
Expand the Footprint
Expand coverage
Telemundo
Pretax Margin
($ in Millions)
50+%
CAGR
~$50
2002
2003
2004
2005
Significant Growth Engine for NBC
Telemundo Programming Strategy
GLOBO
RTI/CARACOL
ARGOS
Tepuy
• Brazil
• Colombia
• Mexico
• Colombia
• 5 Yr. Deal
• 4 Yr. Deal
• 3 Yr. Deal
• 5 Yr. Deal
– El Clon
– Vale Todo
– Terra Esperanza
– Adrian Esta De
Visita
– La Venganza
– Daniela
– Feliz Navidad
Mama
– Pololadron
– Tal Para Cual
– Pedro El
Escamoso
Telemundo’s Deals with Numerous Suppliers Offers
Flexibility and Diversified Programming
Wrap-Up
2003 Outlook
Pretax Earnings
Sales
~15%
Growth
’02/’03 Upfront
Dayparts
• Upfront and Scatter Pricing
Telemundo
~$1.8 - 1.9B
Digitization and
Cross-Divisional
Productivity
Cable Ratings
2003
• #1 in Ratings Across All
Better Sports
Performance
Up 8%
• Stations Continues to Outpace
Industry Core Growth
Through BD and Taking
Share From Other Media
Costs
• Rights Down With No NBA
• Technology Decreasing News
Gathering Cost and Headcount
• Executing on Telemundo
Synergies
2003… Another Great Year for NBC

Grow the Top Line

Transcription

Similar documents

NBCU Overview