NBC is on the verge of canceling Jay Leno’s weeknight variety show. Ratings have been dismal and local stations are screaming for something that will bring viewers to their evening news programs. (Local stations rely heavily on revenue from local commercials in their news).

Whether you do or don’t like Leno, the lesson here is SO freaking simple a first-year-still-wet-behind-the-ears-MBA could have figured it out:

NBC went with the 5-night Leno concept because doing so was MUCH cheaper than paying for a different scripted show every night. NBC has reportedly been making money on the show, despite lousy ratings.

They chose PROFITS over PRODUCT and the result has come back to bite them.

NBC’s Leno dilemma is a good example of incestuous amplification – where a group of like-minded people sequester themselves from deviant opinion and convince each other they are smarter than everyone else.