In Depth: Looking at CNBC’s cuts…

I didn’t have time to write much about the CNBC cuts this morning but there are several ways to look at this. One way is to take the apoplectic approach; that things at NBC are so bad that even “untouchable” CNBC can’t escape the blade now. The network had survived NBCU 2.0 pretty much unscathed until now. With so much cut everywhere else, it may have forced NBC to re-examine CNBC’s budget.

Another way to look at this is to speculate about where the cuts will land. It could be that the cuts will come as part of restructuring all the CNBC networks into a leaner more integrated unit. We’ve already seen some steps taken in regards to what used to be called CNBC Europe. The speculated 10% budget cut may turn out to be an extension of what is already going on with the repositioning of the various CNBC entitities.

A third way of looking at it would be to consider what NBC thinks of FBN’s future. CNBC was originally tagged as untouchable out of fear of FBN’s launch. NBC didn’t want to do anything that could give FBN an advantage. But that was a year ago. It may be that NBC now thinks FBN will not be a threat and it can now afford to make some cuts to CNBC. This would be dangerous thinking in my opinion, if it indeed has taken place (which we don’t know), because it rests on the theory that we’ve seen the best FBN can do and it can’t get any better or bigger. And after only one year on the air I don’t think we can assume that as a given, particularly when it’s abundantly clear that Rupert Murdoch, going in to FBN’s launch, was willing to take a bath early on the network with the long term goal of a stronger FBN down the road. Murdoch always seems to be looking at the long term and so has Roger Ailes.

In any case, I would expect FBN will not pass up the opportunity to needle its competition for cutting back while they are expanding. To not do so would be akin to passing up on a free meal.