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• TrafficStation GroupsMost 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 NetworksMost stations are “affiliates.”They have a contract with network.“Big Three” – ABC, CBS, NBC. Fox

became competitive in 1994.Affiliation ContractsConventional: 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.

ClearanceAffiliates 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 RegulationFCC 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 NetworksCable 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 advertiser-supported. Exceptions?

Also, cable systems pay a per-subscriber fee to basic-cable channels.

SuperstationsHybrid of broadcast and cable.WTBS, the first. WGN in Chicago is about

the only one left.

Pay-cable networksAlso, called “premium” networks.Subscriber pays extra. Commercial-free.Cable system and network split proceeds

50/50.Advertising, broadcast and cableExcept 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 ContentStations/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 advertisingAdvertisers 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 AdvertisingStill 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.

EmploymentRadio 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 LevelsAverage entry-level all media -- $30KRadio -- $27,000TV -- $24,400Specific Jobs – AveragesTV news reporter --$35,000TV news anchor -- $85,000Radio program director -- $70,000General 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 programmingNiche 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 SchedulingDayparts (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 theoriesLeast 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 – TelevisionLocal TV programming mostly takes the

form of news.Provides valuable community service,

but is also profitable.As much as 50% of sales revenue.Local cablePublic-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 radioMuch 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.htmHD radio gives local radio new technology for 21st century.HD radioRadio wants to become available on cell phones.Radio on cell phonesFormatsCommon formats: Religious (most on AM); AC, CHR,

Country; Adult Contemporary; Oldies/Classic Rock; News/Talk.

Syndicated ProgrammingPrograms (TV or radio) that are sold to

individual stations in many markets.First-run syndication (“Oprah” “Katie”).Off-network syndication (“Friends”).Children’s ProgrammingCable 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 IssuesConcern over influence of TV led to V-

chip in 1996. V-chip

TV Program RatingsTV-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).