NBC Seems To Have Learned The Wrong Lesson About Scarcity
from the an-olympic-gold-in-misunderstanding dept
Of the various television companies, NBC Universal has always had the most trouble grasping the basic economics of scarcity and abundance, so perhaps it's no surprise that it's still misinterpreting the data that shows its mistake in trying to stop anyone from watching any of the major Olympic events live online. Instead, it forced people to wait until it was aired, hours later, on TV. This is leading to massive frustration, as people hear about various events, but can't see them for a while. Stunningly, NBC Universal boss Jeff Zucker seems to think this is a good thing, claiming:"There's no question we did the right thing in holding the opening ceremony to air in prime time on NBC that night. The excitement that built out of word of mouth that the opening ceremony was the most spectacular thing that people had seen, that China had wanted to make a statement and they made a statement and people wanted to see that."Read that a few times and spot the logical inconsistency. He's basically saying that by forbidding people from seeing the content and frustrating them, it built up word of mouth excitement. Apparently, it hasn't occurred to him (despite what his own data suggests) that another way to have built up word of mouth about the events would be to show them so that people could watch them live and tell their friends about it getting them to go see it when it gets rebroadcast again in prime time.
At the link above, Chris Matyszczyk, lays on the satire in responding to this view that forced deprivation breeds word of mouth demand:
So one assumes, given that this strategy has been so successful, the next time NBC's cameras exclusively witness, say, an assassination or a politician saying or doing something nutty, they will keep it to themselves until prime time comes along. You know, just to build up the excitement.Let's hold NBC to this standard, shall we?
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Filed Under: olympics, scarcity
Companies: nbc universal
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Did he just say....
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GoodWill
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Where Did They See it?
So where did they see it if it wasn't live on NBC? (sarcasm) Is he admitting that where they saw it benefits NBC?
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The means justify the means
Of course he is going to defend his strategy, no matter how many gaps others see in his strategic plan. He is not going to come out and publically admit missed opportunities or outright failure. American Media does not see it's own faults. If they did, we would call them CBC or BBC and not NBC or any other American media corporation. We Americans, with our current legal system, could claim insanity to admit culpability to any public failure. Corporate presidents and CEOs especially fall into this category. If they admitted failure publically, they would find themselves out of a job before the comments hit the news wires.
In this day and age of the Internet, satellite broadcasting and other forms of communication; why would consumers decide that they must rely solely on NBC for entertainment? There are other broadcasting organizations around the world who do offer streaming video in real-time of the Olympic events. (UK, Canada, Germany, France...)
If consumers really want to send a message to NBC about how effective their strategies are, watch an international competitor's site and shun NBC. No matter how you spin negative numbers, it will still be a negative number and even all the spin the CEO hypes will still be seen on the bottom line of the fiscal balance sheets.
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Settle down kids
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I think the Author underestimates NBC
This of course was the phony statement NBC released to the public: "There's no question we did the right thing in holding the opening ceremony to air in prime time on NBC that night. The excitement that built out of word of mouth that the opening ceremony was the most spectacular thing that people had seen, that China had wanted to make a statement and they made a statement and people wanted to see that."
In reality this is what he would have said, "We have sponsors doing backflips trying to get their spots on during the Olympics. We stand to make millions on this one. I wish the olympics where held every 6 months. We had major sponsorship for the opening ceremonies and the money will be rolling in for most all of the Olympic content. I just couldnt be happier that NBC is carrying the Olympics. If we lose a few viewers by flooding the programming with Olympic content it wont really matter. Chances are the viewers are going to come back when its over. You cant make an omlette without breaking some eggs.
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Delay?
Piracy...once again providing content where content providers refuse.
NBC == fail
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Thankfully I live near Canada
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NBC was not the only provider...
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Re: NBC was not the only provider...
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Re: Re: NBC was not the only provider...
How is it an "illegally downloaded tv show" if all they did was essentially time-shift not unlike what most of us do everyday with our DVR? It's not Pay-Per-View or On Demand or something like that.
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Re: Re: Re: NBC was not the only provider...
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If they have exclusive access
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Re: If they have exclusive access
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BOYCOTT!!!
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The Olympics are FIXED!
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I know it's the principle of the thing, but...
You really are hopeless.
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Keep your Olympics, I don't want it!
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NBC, BBC, and the Olympics
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Re: NBC, BBC, and the Olympics
Yes, in fact I think that this is one of the main points of the original post, that NBC wants to prevent anyone in the US from viewing the events in any way other than on their authorized TV channels. The problem with this is, of course, having the exclusive rights to show the Olympics (or any event, really) ain't what it used to be. Given the various outlets made available by the Internet (and exacerbated by the time difference between the US and China) people know that the content it out there, so of course they want to see it. Maybe 20 years ago, it was easy to lock down your "exlusive TV rights", but today you get increasingly silly tactics like the BBC site blocking video when accessed by the US.
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NBC's Olympic lead medal
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Re:
I care because NBC is doing something stupid and could be doing a better job, serving its viewers and advertisers better -- and they seem to not realize it.
This has been happening for years.
And thus I shouldn't be allowed to talk about it?
You act like this is a new development.
No, I'm quite familiar with how long it's been going on. I'm just pointing out why it's wrong.
Time and time again you prove to be clueless to reality.
Which reality would that be? The one where NBC is pissing off a bunch of folks?
Sure everyone on your site would love to watch the olympics on the internet, but I am guessing most people would rather watch it on their large TV than their little (in comparsion) computer monitor.
I wasn't saying the should necessarily broadcast it only on the internet. I was saying they should broadcast it live ON TV, and then they can replay the stuff in prime time again if they're so concerned about people watching in prime time.
The point is that a lot of people are unable to watch what they want when it's live -- which is when most people enjoy watching sporting events.
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Re:
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Part of the fun of watching the Olympics is the suspense of competition. It's not just about computer generated fireworks and lip-syncing singers. As much as I tried to avoid any media coverage, it was still easy to bump into the information if the event happened over 3 hours ago. NBC ruined the fun of watching the Olympics because more often than not, I already knew the outcome of the events.
Forcing everyone to wait until NBC decides to air the events in order to increase their ratings is despicable. They've held the Olympic games' US audience hostage.
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B.loodthirsty
C.orporations
!!!!lulz
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Ref: http://en.wikipedia.org/wiki/Brockian_Ultra_Cricket
Rule Three: Put your team and the opposing team in a large field and build a high wall round them.
The reason for this is that, though the game is a major spectator sport, the frustration experienced by the audience at not actually being able to see what's going on leads them to imagine that it's a lot more exciting than it actually is. A crowd that has just watched a rather humdrum game experiences far less life-affirmation than a crowd that believes it has just missed the most dramatic event in sporting history.
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Games vs Ceremony
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Re: Games vs Ceremony
Yes they do need to please advertisers, by making sure that eyeballs are firmly glued on the set ready to absorb the commercial messages. However, you don't make viewers happy by limiting their choices or their access to programming. You can't have one without the other!
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Re: Games vs Ceremony
It's not just the ceremony that was delayed. Practically the entirety has been broadcast on a delay. Some events already work out to exist in prime time. If they are happening in the morning in Beijing, they're happening in prime time in the US, but even those events were aired delayed if you don't live in EST. They could have easily been aired live.
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If I read a headline saying who won a match
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http://www.foxnews.com/story/0,2933,407803,00.html
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