It goes without saying that television and its entertainment industry, like other industries, has its troubles. Advertising revenue is down on the television industry, forcing severe constraints on production budgets. Executives at every network are working hard to rethink their product in this current economic climate. There are many new challenges the television industry must face.
There are no easy answers. You lay off staff and production quality can suffer. When production quality suffers, people tune out. When they tune out, they don’t often come back. There are too many other distractions, the Internet not being the least of them. Video games is yet another. The population is segmented, divided among myriad interests. There is simply not the larger pool to draw from.
So what is a network to do? As the economic downturn sets in, viewers appear to be turning to scripted, escapist shows again. Fantasy is in; reality is out. Fantasy sold for years on TV. Long before Ben Silverman, current Co-Chairman of NBC graced the scene with his presence, there was Fred Silverman, “Freddie,” to friends and industry cognoscenti alike. He was the wonder kid of his time. By developing and programming the kind of pop fantasy audiences of the seventies and eighties adored, Fred Silverman first took CBS and then ABC to the number one status among networks.
Back then it was something. Competition was fierce. No Internet or Video games to distract viewers. You either took the audience share or another network took it from you. A hit show drew Nielsen ratings of a 40 share or more. Now, if a shows draws in the teens it is cause for serious celebration.
Fred Silverman was respected. He wasn’t the rebel with the exception of his programming. Ben Silverman is a different creature in a different time. While Fred Silverman made do with his mere President of the Network salary, Ben Silverman came to NBC as the owner of Reveille, how own successful production company. To shake off appearances of any conflicts of interest, he sold Reveille for $100 million or so. Of course he then farmed out shows to his old production company, something which at one time was viewed as declasse. But these, indeed, are different times.
Ben Silverman brought in his cronies. His former assistant, who had no network experience, was appointed to a key position. She promptly alienated most there by lobbying for her boyfriend’s shows. Another act that had once been considered declasse. Silverman himself, the shining star, is turning into the shooting star, fading over the horizon. His shows are failing and his theory about programming and insisting it is profit margins and not ratings that matter, has, to be kind, revealed its flaws.
So now NBC is embroiled in layoffs. Hundreds, if not thousands, will be given their pink slips. Others will be forced to fly coach in a world where first class was the standard. Oh my! In short, the network is losing money. It is not the only network losing money, and certainly not the only media company to have fallen on hard times.
So where Fred Silverman succeeded, Ben Silverman has failed. You could blame the failure on Ben Silverman and the choices he made. But that wouldn’t be accurate. You must also blame the times. Everything in television has changed since Fred Silverman ran the networks. Except in some ways the networks. Networks have never been all that cost efficient with an eye always cast to the bottom line. They think they are, but when salaries, perks and production costs are what they are, simply put in these times of smaller audiences, bigger budgets make no sense. Giving stars huge sums offsets all the other expenses, despite prevailing wisdom.
So what can we learn from all of this? Even in supposedly recession proof industries, a recession can hurt you. Changing times and the paradigm of the market place can hurt you even worse. We see it here in the Television industry and again in the automotive industry. Key executives fail to confront the existent realities and make the necessary changes. They think they are making changes, but all they are really doing is moving pieces around the board.
If you have a business, this is the lesson to learn. Even if you have a small business, there is a mighty lesson to learn here. Understand the times, and the marketplace within those times. Be careful who you are hiring. Have rigorous preemployment screening programs and don’t hire because someone is young and flashy. Hire them because they bring good ideas to the table. Hire them because they can implement those ideas. And then watch your costs and understand your profit margins. All business can be fickle today. Not just show business or the automotive industry. Get a grip. If not, it’s a long ride down.
Check them out before you hire.
