Zucker's Busy New Office

And that means lots of meetings. A recent topic was video-download pricing. iTunes, where NBC has a growing lineup, charges $1.99 each. Too low, too high--who knows? "It's a learning opportunity that is adding revenues," Comstock says. How much? So far, $2.5 million, one third of it from "The Office."

These days, she's pondering all the vexing issues of the digital realm. Business models have to be developed. NBC shows have to be protected from being pirated. As a result of her high-level GE role, "I understand--and at a level that's pretty deep--where NBC has been and the challenges it faces," she says.

Zucker, too, has been busy crisscrossing his expanded turf. Recently, he flew to Miami (Telemundo, NBC's Spanish-language network), and dropped in on the Consumer Electronics Show in Las Vegas, where digital media was the hot topic. He also held a town-hall meeting at CNBC headquarters. With Microsoft now out of MSNBC, Zucker told the audience he might change its name by spring, staffers said. About Rupert Murdoch's plans for a CNBC rival, he told them he didn't know if there's room for two financial-news networks. "But if there isn't room for two," he added, "the one will be us."

Despite stumbling, NBC Universal remains a formidable media giant. Its USA network reaches the most homes in cable. At Bravo, "Project Runway" drew the highest ratings of any cable offering last week, and could become another "Queer Eye"-size hit. Although MSNBC is an also-ran in cable news, it and CNBC are profitable parts of a potent NBC News operation. In February, NBC will spread coverage of the Olympics across its TV empire, using the telecasts to promote its shows. "I feel very good about where everything is in the company, save for prime time," Zucker says. "We're in the turnaround phase in prime time."

That bullishness is a hallmark of GE, echoed in the tone of CEO Immelt when he discusses the media business. "We're not in it just to be in it," he told the analysts last month. "I like the content angle." That means Immelt believes there's gold in TV shows and movies delivered to iPod, Xbox and the rest of the proliferating digital universe of "multiplatforms." Of course, his view could change. "If it ever became apparent that there was some breakup [of NBC Universal] that would create extraordinary shareholder value, we'd be crazy not to look at it," said Immelt.

Performance-review time: the boss who counts most around NBC offices is no idiot.

© 2006