NBC - G.E.'S EARNINGS HIT BY NBC'S COSTS

G.E.'S EARNINGS HIT BY NBC'S COSTS

Not only are lower ratings being reflected in NBC's bottom line, but so are the costs of developing new programs that the network hopes will boost those ratings. Those costs impacted third-quarter results for the network's owner, General Electric Co., included in an SEC filing released today (Monday). Today's Los Angeles Times noted that the pilots for Kidnapped and Studio 60 on the Sunset Strip -- two new shows that opened to disappointing ratings and which are likely to face early cancellation -- cost close to $7 million each. On the other hand, GE's Universal Pictures saw revenue increase 48 percent, thanks in great measure to its DVD releases, including The Fast and the Furious: Tokyo Drift. The Times quoted Matt Collins, an analyst with Edward Jones, as saying, "Its film business did better than it expected. ... Diversification from ... the film studio and its DVD business and the theme parks has paid off over the last year, as NBC has fallen in the ratings competition."

16/10/2006