Broadcasting, Cable, the Internet and Beyond Chapter 5 Quick Facts zNetwork share of audience...
-
Upload
adrian-lucas -
Category
Documents
-
view
218 -
download
0
Transcript of Broadcasting, Cable, the Internet and Beyond Chapter 5 Quick Facts zNetwork share of audience...
Broadcasting, Cable, the Internet and BeyondChapter 5
Quick Facts
Network share of audience (prime-time) 1975: 90% Network share of audience (prime-time) 2002: 47% Number of TV networks, 1975: 3 Number of TV networks, 2002: 7 Number of homes with one or more TVs: 106,641,910 Percent of TV homes with more than 100 cable channels:
40 (est. 2002) Percent of TV homes with HBO: 30 (1999)
Broadcasting, Cable, the Internet and BeyondChapter 5
Transition sums up television today
Television is moving from analog to digital, high-definition
There are more television networks and cable networks today that 10 years ago
Television competes with home video, video games, and the Internet for viewers
About 70% of homes subscribe to cable television About 15% of homes subscribe to DBS
Broadcasting, Cable, the Internet and BeyondChapter 5
Types of Television StationsTV stations by type
UHF Commercial44%
VHF Commercial34%
UHF Educational15%
VHF Educational7%
UHF Commercial
VHF Commercial
UHF Educational
VHF Educational
Broadcasting, Cable, the Internet and BeyondChapter 5
Types of Television Stations
VHF - Channels 2 - 13 - about 570 stationsUHF - Channels 14 and above - 750 stationsDTV - new allocation for digital television
Broadcasting, Cable, the Internet and BeyondChapter 5
Commercial versus Noncommercial
Commercial TV - 78% of all television stations are commercial.
Commercial stations program information and entertainment in order to attract an audience.
Stations sell airtime to advertisers based on how large the viewing audience is.
Noncommercial TV - 22% stations are commercial free Most are affiliated with PBS or with a college or educational
institution
Broadcasting, Cable, the Internet and BeyondChapter 5
Network Television - The Big 4
Big Three - started originally as radio networks NBC - National Broadcasting Company CBS - Columbia Broadcasting System ABC - American Broadcasting Company
Fox Broadcasting Company - started in 1986 by Rupert Murdoch
Broadcasting, Cable, the Internet and BeyondChapter 5
Television Networks - The New Networks
UPN - United Paramount Network Started 1995 Star Trek and WWE Smackdown
WB - Warner Brothers Started 1995 Buffy, 7th Heaven and Smallville
Pax TV - Started 1998 Programming based on family values
Broadcasting, Cable, the Internet and BeyondChapter 5
Network Television (continued)
The 4 major networks (ABC, CBS, NBC and FOX) have the majority of television viewers About 47% of all television viewers watch these four networks
New networks such as UPN, WB, and Pax have smaller audiences. They tend to program less time than the big 4. Viewership is
much smaller, too
Broadcasting, Cable, the Internet and BeyondChapter 5
Television is a business comprised of two separate business models:
Network Television develops programs and distributes them to be shown by local affiliates. Networks sell time within the programming.
Local Television Stations schedule programs when networks do not program. Local news, syndicated shows and network reruns are staple
programming.
Broadcasting, Cable, the Internet and BeyondChapter 5
Local Television stations rated by profitability
Network owned and operated stations (O&Os) are most profitable (***** VHF, **** UHF)
“Big Four” network affiliates (**** VHF, *** UHF) WB - UPN - Pax affiliates (*** VHF, ** UHF) Independent stations (* VHF, * UHF) Low- power TV (1/2* VHF, 1/2* UHF) (more stars the better)
Broadcasting, Cable, the Internet and BeyondChapter 5
Lower-Power Television
This service was created originally to promote minority ownership in 1982.
Stations are limited to 100 watts VHF 1000 watts on UHF
About 500 LPTV are in operation, mainly in rural areas Alaska has the most LPTV stations
Special Interest and minority programming are likely
Broadcasting, Cable, the Internet and BeyondChapter 5
TV Station Ownership
Television owners tend to be large corporations
Station ownership was limited before the Telecommunications Act of 1996
In 2003, Group owners can own as many stations as
they wants as long as the total number of U.S. Total TV homes reached by those stations cannot exceed about
35% (actually the FCC discounts penetration of some UHF stations)
Broadcasting, Cable, the Internet and BeyondChapter 5
TV's TOP 25 STATION GROUP OWNERS
Rank Group # of Stations Percent of TV Households 1 Viacom 40 39.50% 2 Fox TV 34 38.10% 3 Paxson 68 33.70% 4 NBC 24 30.40% 5 Tribune 23 28.70% 6 ABC 10 23.80% 7 Univision 32 21.00% 8 Gannett 22 17.50% 9 Hearst-Argyle 34 15.90% 10 Trinity 23 15.80% Source: Broadcasting and Cable
Broadcasting, Cable, the Internet and BeyondChapter 5
Public Television
PBS programs to more than 350 stations in the U.S., and U.S. territories and protectorates
Watched by nearly 98 million homes weekly PBS has a loyal following Typically PBS ratings hover around 2% of homes in the US
Viewers have high incomes and are well educated
PBS garners funding from local television stations, from underwriting, and through federal grants
PBS has been an early advocate of digital television
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Television
Cable is a strong competitor to over-the-air television Cable revenues exceed $48 billion (2003) Cable systems growth
Small 12 channel systems in the 1960s were the norm 1970s, 35 channel systems typical 2003, most people receive nearly 90 different channels
Basic cable services include local channels and advertiser-supported program services
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Television Program Services
Current ‘Must-Carry’ / Retransmission Consent Rules Broadcasters could choose either ‘must carry’ - cable operators
are obligated to carry local station Retransmission consent - need to negotiate carriage with cable
company Today, most cable operators continue to carry programming of
TV stations in their service areas
Major nets made programming available to cable in return for channel space for new services
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Television Program Services
USA, Lifetime, CNN and ESPN - examples of advertiser supported basic cable services
Pay services such as HBO and Showtime - commercial free services. Nearly one of three cable homes subscribes to HBO
Electronic Program Guides (EPGs), local government channels - examples of specialty services
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Terminology
Homes passed - about 98 of the 105 million homes in the U.S. are capable of subscribing to cable
Households that subscribe to services like HBO are called pay households
Multipay households subscribe to more than one pay service
Systems with addressable converters allow subscribers to pick movies and events on demand (PPV)
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Ownership Multiple System Operators (MSOs) tend to be large
corporations. Rank MSOs subscription households 1 Comcast* 21,757,300 2 Time Warner Cable 12,847,000 3 Charter Comm 6,783,900 4 Cox Comm 6,250,000 5 Adelphia 5,453,000 * (Comcast is now merged with AT&T Cable)
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable Economics
High up-front capitalization (cost to wire each home) Tier system provides additional revenues Local systems now sell local advertising Additional services such as high speed Internet access
provides additional revenue streams Cable television systems are sold on the basis of cost
per subscriber.
Broadcasting, Cable, the Internet and BeyondChapter 5
Direct Broadcasting Satellites (DBS)
Started in 1994, DBS has 1 in 5 television viewers Two companies provide DBS services
DirecTV The Dish Network
Broadcasts from powerful KU band satellites Sells packages of services Generally cheaper than cable television Few DBS markets have local television channels included
Broadcasting, Cable, the Internet and BeyondChapter 5
Television Station Organization
Television stations generally have 5 divisions Sales - sells time to advertisers Engineering - keeps the station operating Business - responsible for collecting money and
paying the bills Programming - develops programming for station News - produces local newscasts and informational
programming
Broadcasting, Cable, the Internet and BeyondChapter 5
Cable System Organization
Departments of the cable franchise Technology Marketing Customer service