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.
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