An internal memo from NBCUniversal, celebrating the second anniversary of the company in its current incarnation, has been leaked.
The leaked memo, celebrating the successes the group achieved in 2012 is interesting in one regard. It fails to make any mention of the company's finance and investing property CNBC.
The memo, which is printed in its entirety below, take a verbose tour of the company's offerings, their achievements in the last year and the roads used to get there. However, The document did not offer a hint of the existence of CNBC, a sign that something may have gone awry at one of the company's most iconic properties.
CNBC has for years been regarded as one of the centerpieces of the NBCUniversal empire. That may be changing, recent reports, including one from the New York Daily News, have suggested that ratings for some of the cable channels top shows, including Squawk Box and Closing Bell, plummeted in 2012.
It clearly has not been a good year for CNBC, but for the company to be left out of a memo reflecting on 2012 things must have been simply awful. Ratings between December 2011 and December 2012 fell by 14%. In the highly sought after 25-54 demographic viewership fell by 15%. 2012 was the worst year for the company since 2005.
The only program to see growth for 2012 at CNBC was the documentary hour beginning at 10 p.m., all of the channel's most important properties saw their ratings fall in the twelve months, and programs like Squawk Box have fallen to 2006 ratings levels. Something is wrong at CNBC.
The memo, signed by Steven Burke, the NBCUniversal CEO and President, stated that the firm has "changed our focus to look outward more, measuring ourselves against our competition and spending more time with our customers." Reflecting about the company's relationship to competition may be worthwile in relation to CNBC.
Fox Business, the property most directly competing with CNBC, showed a 2% rise in ratings for the year December 2011-Decemebr 2012. In the important demographic, 25-54, the firm showed an increase of 17%. The other major channel in the category is Bloomberg, which is not publicly rated.
NBC Universal is jointly owned between General Electric Company (NYSE:GE), and Comcast Corporation (NASDAQ:CMCSA). Apart from the ignorance of the company's business channel, the memo extolls the virtues of the year 2012.
The full memo celebrating the year 2012 as it was, and ignoring CNBC, is printed in its entirety below.
---------- Forwarded message ----------
From: Burke, Steve (NBCUniversal)
Sent: Monday, January 28, 2013 8:28 AM
To: NBCUniversal Employee Communications (NBCUniversal)
Subject: Second-Anniversary Update
As we mark the second anniversary of the new NBCUniversal, I want to share with you some reflections on the last year and outline our priorities for 2013.
By any measure, 2012 was a very successful year for NBCUniversal. We exceeded our financial goals for the year and made good progress on the objectives we shared with you last January. We are becoming a more unified, less siloed company. We are making it easier to do business, reducing bureaucracy and simplifying administrative tasks. We are starting to realize returns on our investments, particularly in the broadcast business. We have also changed our focus to look outward more, measuring ourselves against our competition and spending more time with our customers.
Acquisitions tend to succeed or fail in the first few years. Getting off to such a positive start bodes well for our future. Thank you for your hard work and dedication over the last two years. You should be proud of what we've accomplished together.
Many of our businesses had noteworthy achievements in 2012, but I will highlight four in particular.
First, under the direction of Bob Greenblatt and his team, NBC's primetime performance has been extraordinary. Last fall we went from fourth to first in the ratings, something that has never been done before by NBC or any network. We know ratings will fall off without Sunday Night Football and The Voice, but we should end the season in second or third place, which represents a big swing in momentum and increased advertising revenue heading into next season.
NBC Sports is our second remarkable 2012 success story. Not long ago, the conventional wisdom was that the only way broadcast sports could make money would be to abandon properties like the Olympics and the NFL. Mark Lazarus and his team have proven that wrong. We have new long-term deals for both these important properties and for the first time in recent memory, on the strength of an amazing London Olympics and Sunday Night Football, NBC Sports was profitable in 2012.
The NBC Owned Stations group is the third big success story. This is another business that some said should be left to decline. Instead, we invested in our stations and under the leadership of Valari Staab and her team, our stations group has undergone a significant