NBC Universal Tightens the Purse Strings

By Rebecca Brody
14:30, October 20th 2008
54 votes
Vote this story

In a new indication that the economic crisis may have a major influence on the media segment as well, NBC Universal is planning to remove $500 million from next year’s budget.

Jeff Zucker, NBC Universal’s chief executive announced the cut in a company memo on Friday, explaining that the reductions will be equal to 3% of the General Electric Co. unit’s budget for 2009, which is estimated at $16.7 billion.

The announcement made by NBC Universal is the most recent in a series of economic notices that have invaded showbiz, as both CBS Corp. and Viacom Inc. have cut their 2008 profit plans because the lethargic financial system is affecting television advertising.

“We are living in a time of unprecedented economic challenges,” Jeff Zucker wrote in the memo to staffers, explaining that “it has become evident that the decline in consumer confidence and spending will impact our operations.”

The memo said that the focal points of the process would be cuts in staffing, promotional expenses and discretionary spending on travel, entertainment, as well as outside experts.

NBC Universal, which includes broadcast and cable television networks, local television stations and a film studio, announced approximately a week ago that it saw a 10% increase in quarterly operating profit that was boosted by the Beijing Olympics, the box office success of Universal Pictures’ latest productions, including “Mamma Mia!,” and positive results at its cable companies.



© 2007 - 2009 - eFluxMedia
dotclear

Other News in

dotclear
Latest videos in Business
China eyes fewer car, steel...
Business Update: Asian stocks...
Business Update: Jobless...
The Fed's big fix
Generic drug industry outlook

dotclear
Business You are here: Business
» World   » Business   » U.S.   
E-mail To A Friend Print RSS Text size: Decrease font size Increase font size
dotclear
dotclear
dotclear

Interested In This Topic?

News Alert will keep you informed. Find out more.
dotclear
Photos Gallery
dotclear