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Broadcast and
Cable/Satellite TV
     Today
      COM 110
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
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
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
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
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
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
Local Television
• Various types of local TV stations:

• Network O&Os

• Big Four network affiliates

• CW/PAX affiliates

• Independents

• Low power TV
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
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
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
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"
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
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
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
Cable Programming
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
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
Cable and MSO
         Ownership
• Multiple system
  operators

• Single system
  operators/cable system
  operators

• MSOs dominate the
  cable business
Direct Broadcast
      Satellites: DBS

• Two main companies:
  DirecTV, Dish Network

• Typically priced less than
  cable for similar services
Working in Television
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
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

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TV Broadcasting Basics

  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. Local Television • Various types of local TV stations: • Network O&Os • Big Four network affiliates • CW/PAX affiliates • Independents • Low power TV
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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"
  • 13. 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
  • 14. 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
  • 15. 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
  • 17. 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
  • 18. 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
  • 19. Cable and MSO Ownership • Multiple system operators • Single system operators/cable system operators • MSOs dominate the cable business
  • 20. Direct Broadcast Satellites: DBS • Two main companies: DirecTV, Dish Network • Typically priced less than cable for similar services
  • 22. 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
  • 23. 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