3.4 Acquisition and syndication of programming

NBC's programming strategy hinges on smart content acquisition and syndication. The network carefully evaluates potential shows based on audience appeal, brand fit, and financial viability. This process involves collaboration across departments to make informed decisions about what to air.

Syndication extends the life of NBC's programs, generating additional revenue after their initial run. The network times releases strategically to maximize value in different markets. Digital platforms have expanded acquisition sources and altered syndication models, pushing NBC to adapt its strategies for the streaming era.

NBC's Content Acquisition Process

Evaluation Criteria and Strategy

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• NBC evaluates potential programs based on target audience, projected ratings, and alignment with network brand identity
• Network utilizes internal research, industry trends, and audience data to inform acquisition decisions
• Considers financial aspects including production costs, licensing fees, and potential revenue streams from advertising and other monetization methods
• Acquisition team collaborates with programming, marketing, and finance departments to assess viability and potential success of external content
• Acquires content at various stages of development (script ideas, fully produced pilots, existing shows from other networks)
• Engages in bidding wars with other broadcasters for high-profile content, requiring strategic decision-making and resource allocation
• Acquisition criteria vary based on intended programming slot (primetime, daytime, late-night) with specific requirements and audience expectations

Collaborative Decision-Making Process

• Interdepartmental collaboration ensures comprehensive evaluation of potential acquisitions
  • Programming team assesses content quality and fit with network schedule
  • Marketing department analyzes promotional potential and audience appeal
  • Finance team conducts cost-benefit analysis and projected ROI
• External consultants and focus groups may be utilized to gather additional insights
• Decision-making process involves multiple rounds of review and discussion among key stakeholders
• Final acquisition decisions typically require approval from network executives and sometimes parent company leadership

Market Analysis and Trend Forecasting

• NBC conducts extensive market research to identify emerging trends and audience preferences
• Analyzes performance of similar content on competing networks and streaming platforms
• Utilizes data analytics tools to predict potential viewership and demographic appeal
• Considers broader cultural and societal trends that may impact content relevance and longevity
• Evaluates international market potential for global distribution opportunities
• Assesses potential for cross-platform engagement and social media buzz
• Monitors industry events and film festivals to discover new talent and innovative content concepts

Syndication for Program Lifecycles

Syndication Process and Strategy

• NBC licenses original programming to other networks, stations, or platforms, creating additional revenue streams
• Syndication typically begins after accumulating sufficient episodes (100 for hour-long dramas, 88 for half-hour sitcoms)
• Carefully times release of programs to maximize value in primary and secondary markets
• Extends program lifespan, reaching new audiences and generating revenue after original NBC run
• Considers ratings performance, critical acclaim, and cultural impact when determining syndication potential
• Engages in various syndication deals (exclusive arrangements, non-exclusive licensing, market-specific rights)
• Syndication revenue offsets initial production costs and contributes to overall content portfolio profitability

Types of Syndication Agreements

• First-run syndication distributes original content directly to local stations or cable networks (Judge Judy)
• Off-network syndication sells reruns of previously aired network shows to local stations or cable networks (Friends, The Office)
• International syndication licenses content to foreign broadcasters or streaming platforms (Law & Order franchise)
• Digital syndication involves selling streaming rights to online platforms or VOD services (30 Rock on Hulu)
• Barter syndication exchanges advertising time for program content, sharing revenue between syndicator and local station

Syndication Impact on Content Creation

• Potential for syndication influences initial production decisions and long-term storytelling strategies
• Shows designed with syndication in mind may aim for episode counts that align with traditional syndication thresholds
• Character development and plot complexity balanced against the need for episodes to stand alone in syndication
• Successful syndication can lead to increased budgets or renewals for ongoing series
• Syndication potential may impact decisions to continue or cancel shows on the borderline of renewal
• Networks may produce additional episodes of cancelled series to reach syndication thresholds (100 episode "syndication sweet spot")

Digital Distribution's Impact on NBC

Expanded Acquisition Sources

• Rise of digital platforms expanded potential acquisition sources for NBC
  • Web series (Broad City, originally on YouTube)
  • International content (The Good Doctor, adapted from South Korean series)
  • Streaming-native productions (Unbreakable Kimmy Schmidt, originally produced for Netflix)
• NBC adapts acquisition strategy to compete with streaming services, seeking multi-platform rights for distribution flexibility
• Network considers potential for both linear broadcast and streaming audiences on its Peacock platform
• Shift towards binge-watching and on-demand viewing impacts evaluation of potential success and longevity of acquired content

Evolution of Syndication Models

• Digital distribution alters traditional syndication models
• NBC now considers streaming rights and digital exclusivity periods in syndication deals
• Network balances immediate revenue from traditional syndication with long-term value of retaining streaming rights
• International digital distribution gains importance, with NBC considering global appeal and worldwide streaming rights
• Syndication deals may include clauses for future digital distribution or renegotiation of streaming rights
• Short-form content and web series open new syndication opportunities across various digital platforms

Strategic Adaptation to Digital Landscape

• NBC developed its own streaming platform, Peacock, influencing acquisition decisions
• Network explores innovative release strategies, such as simultaneous broadcast and streaming premieres
• Increased focus on creating and acquiring content with strong social media engagement potential
• Development of interactive and transmedia storytelling experiences to complement traditional programming
• Exploration of virtual and augmented reality content to enhance viewer engagement and create new revenue streams
• Adaptation of advertising models to accommodate digital distribution (targeted ads, product placement, branded content)
• Investment in data analytics and AI to better understand viewer behavior and inform content acquisition decisions