cable system programming. the job of the cable system programmer select from over 200 satellite...
TRANSCRIPT
Cable System Programming
The Job of the Cable System Programmer
Select from over 200 satellite delivered networks
Schedule the networks Evaluate the program services
Decisions that the cable programmer makes Which networks to add or delete Which networks to piggyback Which syndicated services to
subscribe to Whether or not there will be any
local origination programming, or access channels, or leased channels
Tiering strategies
The problem of Audience Evaluation
The number of subscribers is known What is difficult to assess is the
number of individual viewers in your market of channels and programs on those channels.
Cable viewing doesn’t fare well when compared to the broadcast networks.
Cable has a very segmented audience.
The problem of Churn
Churn refers to the number of connects and disconnects that a system experiences.
30% Churn per year spells disaster The number of disconnects divided by
the number of new connects multiplied by 100 = %churn
The programmer is held responsible for the churn level.
The differences in broadcast and cable programming The broadcast programmer selects
programs, produces programs, or buys programs for an individual channel
The cable programmer buys entire satellite delivered networks and then tiers the networks and services.
More differences. . .
A station makes revenue or advertising sales or time sales. A cable system makes money from subscriber fees, spot sales, and kickbacks from shopping channels.
A station is connected to a single network and a cable system is connected to many networks and services.
Factors that influence the programmer’s decisions
legal responsibilities technological capabilities economic factors local market considerations
Legal Responsibilities
Cable Act of 1984 provides for PEG channels
1995 Federal courts ruled that cable operators can censor indecent content on leased and access channels-being challenged under free speech rules in the courts
Syndex rules Franchise requirements
Technological Capabilities
Channel capacity of the system? Digital compression algorithms Is the system addressable? (send
customized packages of channels to subscribers)
Broad enough band width to be interactive
Carry high speed data networks and internet capability
Economic Factors Affecting Program Decisions
How many local avails on basic networks are available to the system?
What are the copyright royalty fees for sports presentations?
How much in subscriber fees is kickbacked to the system from the premium nets?
How much in subscriber buys is kickbacked from the shopping channels?
How much free promotional support?
Marketing Considerations minimize disconnects, maximize connects
content clusters that fit your demographics
broad appeal (USA) and narrowcast services
theme networks (golf, romance, food, car networks
design something for lift
Steps in Programming the System
Schedule the must carries Schedule the local channels Select the premium channels Select a balance of narrow and
broad appeal channels Plan for lift
Tiering Strategies
tier local stations, must carries, and access channels below 13
tier family content next tier news and information culture religion tier movie channels tier specialty channels tier premium channels tier adult fare
Local Origination
local cable company productions, regional sports, news, syndicated off network programs, first run series, links with networks (UPN, Warner) not on system)
PEG channels public educational government
News Inserts (5 minutes of local news at the the top of the hour before CNN)
Basic Cable Network Programming –Tiered content
sportsnews, informationmusicarts/cultureadultreligiousforeign language/ ethniceducational/ instructionalshopping
Basic Cable Channels include
150+ nationwide advertising supported channels
superstations promotional guides and interactive
services text only services regional services
Types of Basic Networks
Foundation Networks: established, popular, (ESPN, CNN, TBS)
Niche or Theme Networks: single program content (shopping, MTV, Comedy Channel)
Subniche networks: sub offerings from the niche nets (Latino MTV from MTV or Animal Planet from The Discovery Channel )
Microniche services: target a population subgroup (Asian American Satellite TV, America’s Disability Channel
The Future of Cable
500 channels digital compression algorithms cafeteria plans of selection extreme narrowcasting focus of continuing and credit learning Will we put a nation of mouse potatoes?
What changes in regulation will we see?
Prior regulation was based on the “scarcity of the airwaves” phenomena.
Scarcity regulation will crumble with the emergence of digital
New forms of regulation for content and advertising will emerge
How do the basic nets make money? What are the problems?
carriage fees (paid by systems to individual nets-usually 10-40 cents per household subscriber)
advertising revenue Problems:
low penetration for the newcomer credit crunch at the banks the industry is cannibalizing itself
How do you launch a new cable network?
Start up costs can be from 40-100 million and monthly satellite fees for transponder space can be 100-200 thousand
Pay the MSO to carry you instead of taking carriage fees from them
Allow a generous amount of ad time for the MSO to sell
A Successful Launch Requires:
distribution of signals stable regulatory environment money good business model clear niche programming aggressive marketing plan for expansion Best bet: MSO support
Before and After Market Strategies
Marketers provide before market services: web pages, home videos, dbs rights, MSO carries, ad sales, and marketing plans
Cable nets pay lower residuals and cable has become a prime aftermarket for series, movies, and programs.
More rarely cable is foremarket with a program moving from cable to net TV
Signature Programming
Four types:original movies or series
narrow theme genresniche
audience programscable exclusives
Original Movies or Series
not shown elsewhere TNT’s Avenging Angel USA’s Problem Child expensive to produce highly promoted attract new viewers first run programs build brand image
for the cable network
Narrow theme Genres
a cable channel with vertical programming
repeats a narrow theme all night club comedy, all shopping,
all weather
Niche Audience Programming
narrowly defined demographic target group
USA’s Highlander: The Animated Series
gives a specific brand image for blocks of time
Cable Exclusives
least common form programs that have been shown
once or twice on broadcast networks and then gone to cable
Vignettes
short form programming usually on pay services fill odd times when movies end Comedy Channel’s Pipeline, Topicals attracts surfers because vignettes
usually play when other nets are in commercial time
Marathons
continuous program scheduling of the same series
usually used to counterprogram some blockbuster show on the competition (Superbowl)
promoted heavily, remind viewers of channel image
Cable Content and Audience Appeals
Broad appeal nets: USA (the top rated basic cable network with original programs like Silk Stalkings and broad appeal off network reruns-1/2 of their prime time is original
TBS, TNT, The Family Channel, Arts and Entertainment are other broad appeals networks.
Niche Networks provide a mix of original and off network programs that target a defined audience
Comedy Central-improv, comic series, specials, movies
Lifetime-service for women Nickelodeon -original programs for
children, classic TV at night E!-Talk Soup, about 1/3 off
network reruns
Sports
top sports producers are ESPN I and II original series on ESPN include The
Extreme Games, College Gameday, Up Close, and Outside the Lines
other sports services are : The Golf Channel, Prime Network, TNTN, TBS, the superstations, Car Talk and Sports
Video Music
MTV was the first 24 hour music video service and pushed music off the broadcast nets.
targets younger views, offers games, talk, interviews, news, cinema verite (The Real World), animation (Beavis), and spun off M2
VH1 is an MTV net, competitors: TNN, CMT, BET,
Educational/Informational/ Entertainment
Discovery is a premiere basic net. Covers: science, nature, history exploration, adventure
Weather Channel is all original programming and vertical
News and Public Affairs
CNN is the leader and draws older, upscale demographics. CNN draws about 400,000 viewers worldwide ( a very small audience) during peak hours.
FNN and CNBC are niche services.
Religion
External World TV, Faith and Values , Inspirational Net, Trinity Broadcasting, and the Worship Network
pay lucrative carriage to companies for carriage, run by nonprofit organizations, about 1/4 of the schedule is informercials for inspirational products, 1/4 of the schedule is from shopping
Home Shopping
a 2.5 billion business by 1995 and projected to be a 100 billion business by 2010
Cable operators use their cut to pay for fiber lines, set top boxes, and channel rebuilds.
QVC is the leader with 85 million subscribers and net sales of < 2 billion.
Ethnic/ Foreign Language
BET was the first, has corporate partnerships with Time Warner and TCI, shows music, sports, sitcoms, specials, talk and news, is a full service offering
Univision, Telemundo, Galavision are Spanish language programming (movies, soap operas, talk), delivered to U.S. Mexico and South America
Others: International Channel (22 Asian, European and Middle Eastern languages), The Filipino Channel, TV Asia, TV5 (French), and ANA( Arabic)
Movies and Arts
AMC: uncut movies, movie history, old travel reels, vintage pr releases from the studios, some original programming
Bravo: 24 hour film and arts net, international films, performing arts, interviews, some original programming.
Disney: switching from pay to basic, family oriented, specials, movies,
Children’s Services
Disney Nick at Nite USA’s KidVid blocks
New Micro Niche Channels
Classic Sports -Reruns of great moments
The Hobby Craft Network American Lawyer The Cowboy Network The Automotive Television Network
Program Guides
printed (generic or specific to the channel such as HB0)
electronic text scroll video guide (barker channel) the
most expensive option, Prevue Networks, Sneak Prevue, Interactive Program Data
Basic Audio Services
Basic Audio services include AEI Network, 6 satellite delivered music channels (music for businesses)
Cable Radio Network, ac music, talk, used under cg, as telephone hold music
CPAN I and II
Premium Audio Services
Digital Music Express (DMX) provides 76 channels of CD quality music
Music choice (MC) 30 channels of music
Premium Programming Services
umbrella term for specialized entertainment services that are an add on to basic services
pay cable services (premium entertainment offered for a monthly subscription price)
Pay-per view, PPV, (charges assessed on a program by program basis
Methods of Signal Distribution
cable connection (most common) direct broadcast services (home
satellite) SMATV Microwave distribution (wireless
cable)
The problems of Shelf Space
The cable company’s available channels are its shelf space
Premium services compete for limited shelf space in this pre-digital age.
HBO is usually the first pick and the only pick is shelf space is limited. Competitors: Cinemax, Encore, Showtime, Flix Starz!
Premium services give a system “lift”
Pay Per View Competitors Request Television Viewer’s Choice Cable Video Store Playboy Action Spice Adam and Eve Adultvision
Multipay Environments( paying for additional services above basic) assumptions about how much the
average household were pay for cable proved low
Churn, substitutions, spins (moving from one pay service to another), and downgrades are part of the multipay environment.
Pay services try to differentiate themselves and timeshift their start times.
Revenue Split between the company and the pay services Subscribers pay about $8-12 per
month per channel. 40-50% of the revenue goes to the
cable company. Premium channels offer operators
discounts and incentives
Video on Demand (VOD)
Menu driven rather than schedule driven.
Viewers construct their own programming environment.
Internet will drive VOD further as we enter a server based environment.
Major Program Genres of Pay Channels
Movies Entertainment Specials Sports
Movies are the staple of premium channels rotation schedules (20-100 programs per
month rotated 3-8 times) rotation goal is to maximize the potential
audience for each program Movie channels care less about the rating of
an individual show than the subscriber base for the service (the buy rate).
Movies are balanced by urban/rural, 18-24, 25-49, 50+, gender
first run, theater release, encore presentations balance the schedule
Movies shown unedited and without
commercials feature films are licensed to pay nets by
per subscriber or by flat fee film placement: start film at 8pm, final
showing at 11:30, an evening is 3-5 programs, rounded out by shorts, interviews, promos, about 4 premieres a week, counterprogramming the nets (Monday football), mature themes are later in the evening
Entertainment Specials
original movies, series, Las Vegas acts, night club acts (all uncensored)
pay cable’s flexibility has allowed odd time events to run into the next hour or half hour
Sports
HBO and Showtime schedule national events, boxing, regional college sports, soccer, and equestrian sports in prime time.
The four biggest nets still have a lock on the Super bowl and the biggest events.
Basketball is on PPV.
The Pay Services Cinemax HBO Movie Channel Showtime Disney Encore 8 Flix Starz
Cinemax
debuted 1980 division of Time Warner geared to younger audience more films than any other dovetails its schedule to not conflict
with HBO includes comedy, music and specials
HBO uses theatrical films soon after their
run and some original programming, series, and showcases
created Tri Star studios parent company is Time Warner has 50% of the pay market used to give lift to a cable company new agreement with DreamWorks
studio
The Movie Channel
only feature films no specials, sports, or showcases programs some vintage movies rights to Paramount films from
1998-2004
Showtime
is usually the 2nd or 3rd addition of the pay channels
feature films, dramatic series, comedic series
hopes to enter HDTV with wide screen movie library before HBO
The Disney Channel
launched in 1983, fastest growing pay channel in the 1980’s
does not play the classics like Sleeping Beauty, plays movies, non classic Disney offerings, original series
is moving to basic cable from pay cable
Encore 8
older films target age group of 30+ titles run 12X a month launched 1991, only $1-$5 a
month
Flix
launched by Showtime in 1992 targets multipay households and is
free to subscribers of 3+ services shows movies from the 1970’s and
1980’s may be ripe for a merger with other
more lucrative premium channels
Starz
offspring of Encore created by TCI has claim on Hollywood Pictures
and Touchstone Pictures will become a major competitor
with HBO
Pay per View Networks
Subscribers select from a menu and phone n their selection.
Primary content is movies, then sports, and concerts
Consumers experience ordering difficulty and don’t like the costs.
Pay Per View: Request Television
distributes : 4-6 movies per week and some boxing and wrestling
distribution is to cable operators revenue is split between cable
system and Request
Pay Per View: Viewer’s Choice
offers 50-60 movies a month offers only a few new releases patterned after the broad offerings
of a video rental store
Playboy TV and Spice
instant brand recognition like Disney changed from pay cable to PPV 75% is original programming plays movies and music videos no duplicate programming for a
week Spice I and II, also PPV, offer only
movies
PPV: In house services
Time Warner offers Home Theater in New York City.
Large MSOs negotiate directly with sports promoters and Hollywood studios.
The future of the Premium Channels
Pressure from VOD will move them from pay to basic. Disney, Bravo and AMC have already migrated.
Compression will bring more competition.
Streaming video on the internet will bring huge VOD offerings.