National Broadband Co. Aims to Help Stations Recover Shifting Ad Dollars

By Juliana Bolden

New York, NY – Responding to the surging popularity of watching video on the web, NBC and its affiliate television stations ratified the creation of the National Broadband Company (NBBC) on Wednesday. The forward-leaning joint venture aims to sell news, sports, lifestyle and other local video content online.

Recovering Ad Dollars Shifting from Tube-to-Web

Ideally, NBBC provides its 200-plus station affiliates with the means to dramatically increase online advertising revenue. The venture is posed to offset potential losses on the conventional television side, as millions of ad budget dollars shift toward the web. Moreover, viewers may gain more opportunities to view programming originating from Seattle, Boston, Chicago or any number of local markets via the internet.

Terry Mackin, NBC Affiliates Board chairman and executive vice president of Hearst-Argyle, said the new partnership allows his team to "serve the market that seems to have an insatiable appetite for video."

Beyond online advertising opportunities, NBBC provides a new outlet through which majority owner NBC Universal may exploit its library. While emphasis is placed on local fare, there is some discussion of NBC-U delivering behind-the-scenes footage and material other than prime time programs.

For now at least, NBC will continue to offer longform shows such as Scrubs and The Office for download via Apple Computer's iTunes and let affiliate-produced content drive the new joint venture.

NBC-U's Comstock: Create Fresh Local Programming, Strengthen
Bonds with Your Local Communities

NBC Universal's president of digital development and marketing Beth Comstock further underscored the need to deliver fresh, regional programming while speaking today at the annual Television Bureau of Advertising (TVB) conference in New York City. “The more you can create original, local programming," she said, "the more you can capitalize on that local bond.”

Comstock, credited with bringing popular web community iVillage into the NBC-U fold, cautioned that simply repurposing television content for delivery on new devices will not do, according to Broadcasting & Cable. Sound advice for networks and locals alike, she encouraged her audience to focus on “developing good content that is right for the digital medium.”

Meanwhile, new entity NBBC is busy developing its overall game plan, reportedly weighing ways to share revenue between the network and affiliates, and mulling a number of options for maximizing returns on all footage. Possibilities loom of licensing video feeds to Yahoo! and other web channels on the business-to-business end. NBBC may develop its own portal to trumpet its spectrum of local station fare to viewers as well.

And why not? After all, like Comstock said during her TVB keynote: "Local stations are perfectly positioned to move into the digital world and bring their community with them." •