Operations and Programming
Commercial broadcast stations:
• Hold a federal (FCC) license for a
specific community.
• Transmit programs over the air
(compare with cable).
• Carry commercial messages.
Examples?
Ch. 4 (Fox); Ch. 5 (NBC); Ch. 8 (ABC);
Ch. 11 (CBS).
Station Functions
• Administration
• Technical
• Programming
• Promotion
• News
• Sales
• Traffic
Station Groups
Most stations are owned in groups by large
corporations (Ch. 8, Belo).
A few are “O &O” (owned & operated) by
the networks (Ch. 5, NBC; Ch. 11, CBS).
FCC limits number of stations one
owner can have.
Trend is deregulation, allowing more
stations to be owned by one owner.
TV – company may not own stations
reaching more than 39% of U.S.
Radio – may own up to eight stations in
a local market (click image); no
national limit.
Some say deregulation is needed to
make TV/radio more competitive;
others fear loss of localism.
Broadcast TV Networks
Most stations are “affiliates.”
They have a contract with network.
“Big Three” – ABC, CBS, NBC. Fox
became competitive in 1994.
Affiliation Contracts
Conventional: Affiliates receive
compensation from networks;
programs are free to stations.
Affiliates also receive “adjacencies,” or
“avails” (slots for local commercials).
Compensation = average 5% of station
revenue.
Compensation arrangements are changing;
networks are reducing or eliminating
compensation.
“Reverse compensation” – affiliates required
to pay networks for shows.
Clearance
Affiliates have the right to reject network
programs.
About 90% of net programs are “cleared.”
(But Ch. 8 did not clear “Saving Private
Ryan”).
“Independents”
Most independents (no network) are
UHF stations.
Cable has helped UHF stations compete.
Relatively few stations are true
independents now, because of startup
networks CW and MyNetworkTV.
Network Regulation
FCC regulates nets thru local affiliates;
stations, moreso than networks, are
subject to FCC regulation.
(Operations and Programming, part 2)
Cable
Unlike broadcasting, cable systems
depend mainly on subscriber fees.
A cable system distributes broadcast and
cable-only channels to subscribers.
More than half of prime-time viewing is
on broadcast channels.
Most cable systems also sell advertising
on cable-only channels.
Telecommunications Act of 1996
allows telephone companies to
compete with cable.
Basic-Cable Networks
Cable systems are required by law to
offer a “basic tier” – local TV
stations and public-access channels.
Must-carry: FCC says cable “must
carry” local TV stations. Unless …
Station demands payment
(“retransmission consent”).
Retransmission consent
“Basic cable” channels are those that do
not require an extra fee. Examples?
Most basic channels are advertisersupported. Exceptions?
Also, cable systems pay a per-subscriber
fee to basic-cable channels.
Superstations
Hybrid of broadcast and cable.
WTBS, the first. WGN in Chicago is about
the only one left.
Pay-cable networks
Also, called “premium” networks.
Subscriber pays extra. Commercial-free.
Cable system and network split proceeds
50/50.
Advertising, broadcast and cable
Except for direct mail, broadcasting is the
largest national advertising medium.
Broadcasters must target audiences and
advertisers.
Mass audience still exists, but in recent
years, focus has been on niche content.
Niche content focuses on target
audiences. Examples?
Commercials vs. Program Content
Stations/networks must decide how
many commercials they can run
without losing audience.
“Zapping” has become a great problem
because of digital video recorders
(DVR; “TiVo”).
Pricing and sale of advertising
Advertisers buy based on ratings.
They target demographic groups, for
example, women, 18-49.
Buys are judged on:
Cost per thousand viewers (CPM).
Cost per (ratings) point (CPP).
Advertisers whose ads don’t achieve
CPM/CPP receive “make goods.”
Internet Advertising
Still in its relative infancy.
Pop-ups – demand viewer’s attention.
Cookies – track users’ on-line
movements.
Viral marketing – usually videos, passed
from user to user.
Employment
Radio and TV stations are not the only
employers.
Production companies, advertising
agencies, sales rep firms, news
agencies, audience research.
Major market radio station – about
60 employees.
Major market TV – about 300.
Salary Levels
Average entry-level all media -- $30K
Radio -- $27,000
TV -- $24,400
Specific Jobs – Averages
TV news reporter --$35,000
TV news anchor -- $85,000
Radio program director -- $70,000
General TV sales manager -- $115,000
Operations & Programming,
part 3
Programs
The most important activity is the
selling of audiences (to whom?).
Viewers and rating points are treated
as commodities to be sold.
Niche programming
Niche services have come into vogue
in recent years.
Audience targeting, segmentation let
advertisers reach viewers they
want.
Programming must be repeatable
(exceptions?)
What if programs all had to be local and
live?
Many TV stations and cable networks
depend on the fact that audiences will
watch programs over and over.
Radio depends on listeners enjoying
their favorite songs over and over.
For TV, some formats “repeat” better
than others.
Reality programs and dramas don’t do
well in reruns, but sitcoms do. Why?
The Art and Science of Scheduling
Dayparts (radio) – morning drive,
midday, afternoon drive, evening.
TV – prime time (largest audiences),
“access” time (6-7 p.m., most revenue
for network affiliates; click image).
TV programmers are concerned with
“audience flow,” the movement of
viewers from one program to another.
Remote controls, VCRs and DVRs make
managing audience flow more
difficult. Remote control
TV programming strategies (examples?)
Strip programming – everyday, same time.
Counter programming – different from
competition.
Block programming – similar programs
scheduled one after the other.
Strong lead-in – audience carries over to a
newer or weaker show.
Hammock – two strong shows surround a
newer or weaker show.
General theories
Least objectionable program – rather
than turn off the TV, viewers will watch
LOP.
Appointment television – viewers seek
the most popular programs, whenever
they’re scheduled. How much longer?
Why so many reality programs?
Reality programs popular with
programmers because they can be
created quickly and inexpensively.
Costs less than $500,000/hour; about
one-third cost of comedy or drama.
Local Programming – Television
Local TV programming mostly takes the
form of news.
Provides valuable community service,
but is also profitable.
As much as 50% of sales revenue.
Local cable
Public-access channels let almost
anyone be on TV (“Wayne’s World”)
Cable access
Local news inserts in CNN Headline
News are common.
A few local all-news channels (Austin).
Local radio
Much less local than it used to be; less local ownership of
stations. (group owner: Clear Channel, Cumulus)
A DJ in a remote location can “voice track” an hour show
in a few minutes. (live / live assist / automation /
network / syndicated)
Stations use strict playlists of songs. Record labels.
http://www.playlistresearch.com/dallasradio.htm
HD radio gives local radio new technology for 21st century.
HD radio
Radio wants to become available on cell phones.
Radio on cell phones
Formats
Common formats: Religious (most on AM); AC, CHR,
Country; Adult Contemporary; Oldies/Classic Rock;
News/Talk.
Syndicated Programming
Programs (TV or radio) that are sold to
individual stations in many markets.
First-run syndication (“Oprah” “Katie”).
Off-network syndication (“Friends”).
Children’s Programming
Cable provides over 60% of hours (Animal
Planet, Nickelodeon)
Major networks backing away from
children’s programming, but FCC
requires TV stations to provide three
hours per week.
Children’s Television Issues
Concern over influence of TV led to Vchip in 1996. V-chip
TV Program Ratings
TV-Y, TV-Y7, TV-G, TV-PG, TV-14, TV-MA.
Apply to all entertainment programs.
Parents may block all programs of a
certain rating (example, TV-MA).