Arrogance will kill you…

Many years ago, I did free-lance work in television news. While I was never a full-time employee, I loved the business and the people (still do!). You didn’t have to be very smart to learn a basic tenet of the business — the program on before yours has a great deal to do with your ratings.

Ever wonder why Oprah makes so much money? It’s not solely because she gets great ratings for her show — it’s also because the lead-in she provides local newscasts enables the stations where she airs to earn a LOT more revenue from their programming. In other words, people watch Oprah in the afternoon…then stay tuned to that station for the newscast that usually follows. Higher ratings for that newscast means the station can charge advertisers more for their commercials.

Now…if I knew that basic — and simple — fact by just being a part-time entertainment reporter for stations in Louisville and Indianapolis…how in the world did the executives at NBC miss it when it came to the havoc they were wreaking on late local newscasts by putting “The Jay Leno Show” on at 10PM?

It’s important to note: NO ONE has disagreed that Leno has “performed as expected in the timeslot.” They were EXPECTING him to get ratings exactly as he did!

It simply must boil down to this — the arrogance of NBC executives meant they really didn’t care or didn’t consider what the local affiliate was going to experience. NBC just wanted to lower costs — something the Leno show obviously did.

Now, NBC is going to probably lose O’Brien…and MILLIONS more in revenue.

How many times do we see organizations “cut costs” — and, instead, end up shooting themselves in the foot? I’ve lost count…

I’m tired of companies managed by “smart” people who “know” very little. They understand a balance sheet, and not human nature. They think internally — then, are stunned when the situation goes to hell externally. They work harder to preserve their jobs than create loyalty from customers. They deserve what they get.

Sooner or later…arrogance will kill you…