The National Broadcast Corporation (NBC) is one of the "big three" television networks in the United States. NBC, along with the Columbia Broadcasting System (CBS) and the American Broadcasting Company (ABC) dominated television during its formative years, and today continue to be responsible for a large share of the entertainment programming. However, recent years have seen competition emerge from a variety of quarters. Cable television has made significant inroads into the traditional networks' markets, and the Fox network, owned by media magnate Rupert Murdoch, has begun to compete with the networks in traditional markets. In addition, the networks must contend with the proliferation of video cassette recorders (VCRs) which permit potential television viewers to watch prerecorded films, or to record shows off the air and watch them later, but fast forward through the commercials. This research examines NBC and its operations in this highly competitive market, and considers its future in a rapidly changing media environment.
During the 1980s, NBC was a leader in the ratings, buoyed by dramatic shows such as St. Elsewhere and Hill Street Blues, and by comedies such as The Cosby Show and Family Ties. It was at this time (1986) that General Electric (GE) purchased NBC. However, the success that NBC had in the 1980s dwindled in the early 1990s when the above shows went off the air and when the company suffered the loss of Johnny Carson and David Letterman in the late-night area. The network posted its first loss in 1991, and GE nearly sold a controlling interest in the company in 1992 to Paramount. In addition to financial loss, the network also suffered a loss of reputation when its Dateline show was revealed to have staged a highly dramatic crash involving a General Motors pickup truck.
Rumors also circulated during this time that the chief executive officer of GE, Jack Welch, was trying to sell the beleaguered network,...