Download - Chapter 5
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COM 110
Broadcast and Cable/Satellite TV
Today
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Television Now• More than 98% of homes in
America have at least one TV
• 3/4 have more than one
• Average American home has the TV on for more than 7 hours a day
• 66% of all homes subscribe to cable
• 26 million subscribers to DBS systems
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Types of Television Stations
• Commercial and noncommercial station: the primary distinction is the way in which they obtain funds to stay on the air
• Commercial stations make money by selling time to advertisers
• Noncommercial stations are not allowed to sell advertising; survive through donations from individuals, businesses and the government
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VHF, UHF and DTV stations
• VHF very high frequency, chs. 2-13
• UHF ultra high frequency, chs. 14 +
• UHF signal was considered inferior
• The advent of DTV has eliminated any distinction in quality; customers on cable never experienced a difference in quality
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VHF, UHF and DTV stations
• Two types of TV business: network television and local television
• Network: a system in which ABC, NBC, CBS, FOX develop program schedules for their affiliate stations; networks sell most of the advertising in the programs, which is how they make most of their money
• Local: revolves around scheduling programs and selling advertising in the community/region
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Fox and other new networks
• Currently, all major networks combined get around 40% audience share
• Fox was launched in 1986, first broadcasting on Sundays
• Motivated by Fox's success, other networks started in the 90's: UPN, WB - eventually combining to form CW
• MyNetworkTV, PAX
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The end of network television?
• Seven major networks, along with cable and all other options for entertainment; very competitive
• Unlikely to ever go away, despite annual profit decline
• Networks draw large audiences
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Local Television• Various types of local TV stations:
• Network O&Os
• Big Four network affiliates
• CW/PAX affiliates
• Independents
• Low power TV
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Network owned and operated stations
• Stations that are owned outright by the parent network
• Traditionally, the most profitable stations
• Examples: KABC (Los Angeles), WNBC (New York)
• Ownership by a network guarantees a steady supply of programming and a high profile for advertisers
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Major network affiliates
• Second most profitable class of TV stations
• Affiliated with a network, but owned by a separate entity
• Currently, about 200 stations each are aligned with CBS, NBC, ABC and Fox
• CW, MyNetwork and i affiliates are next in profitability
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Independents
• An independent TV station is one that does not align itself with a major network
• Have to develop their own programming, do not rely on affiliation for content
• Rare, less than 50 in the US
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LPTV: Low Power TV• FCC authorized LPTV for service in 1982 to
create openings for minority ownership of TV stations, and to increase the number of TV stations serving a community
• FCC places power restrictions, which limit the range of broadcast
• More than 2000 operate in the US, and mostly in rural areas; the most LPTV stations are in Alaska
• Now they broadcast digitally, but are still referred to as a "low power TV station"
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TV Station Ownership
• Most are owned by companies, networks and investment groups
• Relaxed ownership rules permit owning as many stations as one likes, as long as the total number of households reached does not exceed 39% in a market
• CBS is the largest owner, then Fox, and NBC Universal
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Public Television• PBS is noncommercial,
serves 348 member stations
• Operates similar to a network, as PBS provides programming to member stations
• Viewers pledge nearly $500M a year to PBS stations
• Offer award-winning children's and educational programming
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Cable Programming• Basic cable services: backbone of cable, lowest
subscription charge, contain local and regional broadcast signals and advertiser-supported cable services
• Cable Television Consumer Protection and Competition Act (1992): broadcasters had to choose either "must carry" or "retransmission consent"
• Must carry: cable company is required to carry the local TV station's program schedule in its entirety, but the broadcaster receives no compensation
• Retransmission consent: requires some negotiation for compensation from the cable system in return for their signals being carried on the cable
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Cable Programming
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Cable Programming• Advertiser-supported
basic cable services: cable networks that are supported by commercials
• Pay services: subscribers pay an additional fee to receive these services, original programming not available on networks, typically commercial free
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Packaging Cable• Tiering: creation of different service levels
through packaging programming in groups, increasing in price
• Homes passed (HP): all households that could subscribe to a cable system, if they wanted to
• Cable households: HPs that choose to subscribe
• Pay households: cable homes that pay an extra fee for pay services
• Multipay households: homes that subscribe to more than one service
• Pay-per-view: ordering programming as desired from the cable company
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Cable and MSO Ownership
• Multiple system operators
• Single system operators/cable system operators
• MSOs dominate the cable business
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Direct Broadcast Satellites: DBS
• Two main companies: DirecTV, Dish Network
• Typically priced less than cable for similar services
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Working in Television
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Working in Television
• Sales: in charge of traffic and continuity, if a commercial doesn't air, sales must make a "make-good"
• Engineering: responsible for the maintenance of equipment, transmitter.
• Business: accounts payable, accounts receivable, reception/secretary
• Programming: responsible for the purchase of all new programming, scheduling of broadcast day. Includes program director, floor managers, lighting directors, art directors and videographers, producers, directors and production personnel
• News: responsible for all original news programming for a station
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Working in Television
• Cable system organization
• System manager oversees the operation
• Chief tech is responsible for all technical issues
• Marketing manager is responsible for all sales and promotion
• Office manager will oversee customer relations and accounting