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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared NBC's Leno drama might have a happy ending 13 Jan 2010 Troops, food headed for Haiti as quake toll soars | Video 11:03am EST Hymns, children's cries fill Haiti's night 3:23am EST China defends censorship after Google threat | Video 9:02am EST Al Qaeda linked to rogue aviation network 13 Jan 2010 Al Qaeda linked to rogue aviation network 13 Jan 2010 U.S. 2009 foreclosures shatter record despite aid 5:23am EST Chronic sleep loss hampers performance 13 Jan 2010 Hymns, children's cries fill Haiti's night 3:23am EST Netflix in deal with Nintendo to show movies on Wii 13 Jan 2010 pictures Happy Birthday to the King January 8 marks what would have been Elvis Presley's 75th birthday, and the look-alikes show no sign of disappearing. Slideshow NBC's Leno drama might have a happy ending Sue Zeidler LOS ANGELES Thu Jan 14, 2010 2:48am EST Related News Conan O'Brien refuses "Tonight Show" move, NBC quiet Wed, Jan 13 2010 Nightmare at NBC: parsing the legal ramifications Wed, Jan 13 2010 Factbox: "The Tonight Show" host Conan O'Brien Tue, Jan 12 2010 Factbox: Key facts on talk show host Jay Leno Tue, Jan 12 2010 O'Brien refuses "Tonight Show" move Tue, Jan 12 2010 LOS ANGELES (Reuters) - NBC's late-night TV troubles are proving embarrassing and costly for the network -- but the drama could pay dividends down the road. Entertainment | Television | Media NBC is scrapping its cost-cutting experiment that put "The Jay Leno Show" on TV at 10 p.m. because the show earned poor ratings and backlash from local TV stations that said it hurt the 11 o'clock newscasts that followed. NBC also remains the last of the four big U.S. TV networks in audience ratings. But the disaster might come with a benefit: it could draw more viewers to the network, media executives and advertising experts said. "Controversy is sometimes great PR and could reinvigorate Leno's show. More viewers may turn in out of curiosity," said Gabelli & Co analyst Christopher Marangi. That would provide some comfort to NBC, which faces the prospect of spending $10 million to $20 million to reach a settlement with Conan O'Brien. The current host of "The Tonight Show" has refused to go along with NBC's plan to push his show back to 12:05 a.m. to accommodate Leno's return to his old time slot. "The Tonight Show" audience has thinned since O'Brien took over in June, allowing rival David Letterman on CBS to take the lead in the battle for late-night network viewers. Analysts and industry executives think that NBC will put on a tried-and-true staple like "Law & Order" at 10 p.m. until they have new scripted programing in place. Some believe the move could boost NBC in the hot market for last-minute ad spots at the expense of its competitors. "While we don't anticipate that NBC's ratings fall will completely reverse as they introduce new 10 p.m. programing and return Jay Leno to late-night, these changes could slightly impact NBC's competitors who have gained relative share on the national and local level," Michael Nathanson, an analyst with Bernstein, said in a research report. It could also help NBC local stations' performance. "No doubt, a stronger 10 p.m. show could help the NBC station owner and negatively affect rival CBS, ABC and FOX local stations including owned and operated stations," he said. An advertising executive, speaking on condition of anonymity, said NBC will likely command better commercial pricing following the switch. "When all the dust settles it could be a benefit for NBC. They had offered deep discounts and may be able to command better pricing for the 10 o'clock scatter market now," he said. NBC will rebound, said David Scardino, entertainment specialist at ad agency RPA. "In the short-term, the network's going to take a hit. They're radically changing their schedule on short notice, but longer term, they'll put scripted programing and the best of their pilots on and they'll come out ahead of where they are now," he said. "Looking into the 2010-2011 and 2011-2012 season, the network should be re-programed and rescheduled and should be getting higher ratings than what they have been with Leno at 10 p.m.," he said. Still, there are plenty who view the episode as a setback. "They have a hole in the programing and will now have to spend about $300 million a year to put programing back and rush it, which does not necessarily guarantee success, versus $100 million they spent for the Leno show," said RBC analyst David Bank, who thinks that it might annoy advertisers. "I would think the advertisers would cry bloody murder if NBC, after getting them to experiment on Leno, tried to jam up pricing," he said. And there are also concerns Leno faces an uphill battle to reclaim his ratings and advertisers after suffering a drop in his audience during the prime-time experiment. NBC, which is owned by General Electric Co declined to comment for this story. Comcast Corp is in the process of buying a controlling interest in NBC from GE. (Reporting by Sue Zeidler; Editing by Paul Thomasch and Robert MacMillan) Entertainment Television Media More from Reuters Obama proposes bank bailout fee, criticizes bonuses WASHINGTON (Reuters) - President Barack Obama proposed a "Financial Crisis Responsibility Fee" on Thursday to make big banks and other financial institutions repay taxpayer funds that helped bail them out during the financial crisis. Retail sales unexpectedly fall, jobless claims up China defends censorship after Google threat | Video SEC eyes products structured before housing bust Kodak says Apple, RIM infringe camera phone patents Sovereign defaults top 2010 risk hitlist for WEF » More Top News Haiti quake leaves many dead A major earthquake toppled the presidential palace and hillside shanties alike, leaving the poor Caribbean nation appealing for international help. Full Article | Slideshow Live coverage of the Haiti earthquake Factbox: Quake-stricken Haiti Send us your photos and videos NATURAL DISASTERS China defends censorship Beijing's reaction after Google threatened to exit China suggests there is little room for compromise in the feud over Internet freedom. Full Article Google cyber-complaint is tip of iceberg Companies watch and wait Factbox: Foreign firms that withdrew Google © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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