WWE News: NBC Universal to cut down on commercials, could increase Raw and SmackDown Live content

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These reforms might affect WWE significantly

What’s the story?

USA Network’s parent company, NBC Universal, announced a plan to cut down advertisement time and the number of commercials across their platforms starting this Fall.

The commercial reform could require WWE's premier shows Monday Night Raw and SmackDown Live to produce more content to make up for the decreased ad breaks.

In case you didn’t know...

NBC Universal has been experimenting with changes in advertising and implemented the picture-in-picture commercial format that SmackDown Live currently uses.

The switch to picture-in-picture commercials began as an experiment for the 2016 Draft episode, which was also the debut of SmackDown under the new Live format.

The heart of the matter

The press release specifies that total ad time will be decreased by 10 percent for their 'Prime Original' content, and the total number of ads across its networks will be cut by 20 percent - which might affect WWE the most.

The following is the press release issued by NBC Universal on February 28th, regarding their commercial format changes: 

STARTING THIS FALL

NBCUniversal’s audiences will see fewer, better ads that are more relevant than ever before. Less clutter and less ad time means there’s space for more. More premium content, more opportunity, and more commercial innovation.

Fewer Ads:

·     NBCUniversal will reduce the number of ads across its networks by 20%, and total ad time by 10% in Prime Originals across the entire portfolio.

·     The company is making reductions in more than 50 Primetime original shows across its entire portfolio.

Better Ads:

·     Research shows that innovative advertising products increase consumer engagement by more than 20%.

·     NBCUniversal will also unveil a suite of innovative new ad products including Interactive Picture in Picture and Social Commercials and Social First Pods.

·     Contextually targeted ads fuel greater consumer conversion and NBCUniversal will use a new artificial intelligence (AI)-based contextual content targeting product that combs through scripts and data sources to make every ad that much more contextually relevant to its audience.

More Relevant Ads:

·     NBCUniversal will use its unparalleled technology, tools, talent and creative capabilities to help clients’ advertisements resonate the most and deliver them in new ways. 

·     NBCUniversal has created a new 60 second “PRIME POD” of National ad time in the first or last break of a show.

·     This transformative new pod, which will be dedicated to up to two advertisers, combines the power of fewer, better, and more contextually relevant ads, and gives clients a unique opportunity to connect with audiences in the most effective, exciting, and efficient way. 

What’s next?

The commercial reform won’t go into effect until the fall, so it won’t affect WWE programming on the USA Network for the time being.

Raw occasionally goes over their scheduled time, so increasing content for that show might not be an issue but the change could force SmackDown Live to increase the length of matches and/or segments.

Author’s take

Cutting down commercial time will mean that Raw and SmackDown might have to air parts of the matches on TV that are typically reserved for the fans in attendance only, and increase the number or length of segments.

If the company is required to produce more content, this might factor in to the WWE’s contract negotiations with the network as well.

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