The Weather Channel Forecast: Challenges Ahead

01 Mar 2004

The Weather Channel Forecast: Challenges Ahead

Re: Bill Burke (MBA 1992)

2f1f4a24430fe040f37c6d7564258142 Viewers love The Weather Channel, giving its president and CEO, Bill Burke (MBA ’92), an enviable edge over many of his counterparts in the notoriously fickle business of cable network programming. On average, more than 21 million households tune in to The Weather Channel each day. And its weather.com site draws one of the largest audiences on the Web.

The network is so popular that it opted not to hang its corporate logo on its Atlanta headquarters for fear of being overrun by tourists. But audience doesn’t necessarily translate into growing profits, reported the New York Times (November 3, 2003). As a stand-alone cable network in an era of rapid cable network consolidation, The Weather Channel faces “a very challenging time,” Burke acknowledged.

Perhaps Burke’s biggest challenge is growing revenue, reported at $238 million in 2002. The network has avoided asking cable operators for higher subscriber fees, currently about nine cents per household per month. Instead, it is looking to boost advertising revenue. Early this year, it began rolling out new computerized ad targeting technology that displays products tailored to local weather forecasts — for example, snowblowers for blizzards or air conditioners for heat waves. If it proves successful, company officials forecast sunny revenue growth ahead.

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Bill Burke

MBA 1992

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Bill Burke

MBA 1992

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