I think the month long hype over the best actor category and the whole "will she be the first black actress" turned many people off. After hearing about Russell Crowe for a month and whether that would hurt his chances, people probably figured it's just a popularity and hype contest. And then, maybe they tuned in anyway, and saw half an hour bloated, deplorable entertainment with no awards being given out and changed the channel.
Going till 1 in the morning didn't help anything either...at least not on the East Coast.