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Chapter 5 (3)
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Chapter 5 (3)


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  • 1. Broadcast andCable/Satellite TV Today COM 110
  • 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 Foxs success, other networks started in the 90s: 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 childrens 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 stations 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
  • 16. Cable Programming
  • 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
  • 21. Working in Television
  • 22. Working in Television• Sales: in charge of traffic and continuity, if a commercial doesnt 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