Broadcasting, Cable, the Internet and BeyondChapter 5.ppt

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1、Broadcasting, Cable, the Internet and Beyond Chapter 5,Quick FactsNetwork 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

2、 more than 100 cable channels: 40 (est. 2002) Percent of TV homes with HBO: 30 (1999),Broadcasting, Cable, the Internet and Beyond Chapter 5,Transition sums up television todayTelevision is moving from analog to digital, high-definition There are more television networks and cable networks today tha

3、t 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 Beyond Chapter 5,Types of Television Stations,Broadcasting, Cable, the Internet and

4、 Beyond Chapter 5,Types of Television StationsVHF - Channels 2 - 13 - about 570 stations UHF - Channels 14 and above - 750 stations DTV - new allocation for digital television,Broadcasting, Cable, the Internet and Beyond Chapter 5,Commercial versus Noncommercial Commercial TV - 78% of all television

5、 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

6、educational institution,Broadcasting, Cable, the Internet and Beyond Chapter 5,Network Television - The Big 4Big Three - started originally as radio networks NBC - National Broadcasting Company CBS - Columbia Broadcasting System ABC - American Broadcasting CompanyFox Broadcasting Company - started i

7、n 1986 by Rupert Murdoch,Broadcasting, Cable, the Internet and Beyond Chapter 5,Television Networks - The New NetworksUPN - 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

8、family values,Broadcasting, Cable, the Internet and Beyond Chapter 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 networksNew networks such as UPN, WB, and Pax have smaller audi

9、ences. They tend to program less time than the big 4. Viewership is much smaller, too,Broadcasting, Cable, the Internet and Beyond Chapter 5,Television is a business comprised of two separate business models:Network Television develops programs and distributes them to be shown by local affiliates. N

10、etworks 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 Beyond Chapter 5,Local Television stations rated by profitabilityNetwork o

11、wned 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 Beyond Chapt

12、er 5,Lower-Power TelevisionThis 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,

13、Broadcasting, Cable, the Internet and Beyond Chapter 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 T

14、V homes reached by those stations cannot exceed about 35% (actually the FCC discounts penetration of some UHF stations),Broadcasting, Cable, the Internet and Beyond Chapter 5,TVs TOP 25 STATION GROUP OWNERSRank Group # of Stations Percent of TV Households 1 Viacom 40 39.50% 2 Fox TV 34 38.10% 3 Paxs

15、on 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 Beyond Chapter 5,Public TelevisionPBS programs to more than 350 stations in t

16、he 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 thro

17、ugh federal grants PBS has been an early advocate of digital television,Broadcasting, Cable, the Internet and Beyond Chapter 5,Cable TelevisionCable 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 w

18、ere 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 Beyond Chapter 5,Cable Television Program ServicesCurrent Must-Carry / Ret

19、ransmission 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 ne

20、ts made programming available to cable in return for channel space for new services,Broadcasting, Cable, the Internet and Beyond Chapter 5,Cable Television Program ServicesUSA, Lifetime, CNN and ESPN - examples of advertiser supported basic cable services Pay services such as HBO and Showtime - comm

21、ercial 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 Beyond Chapter 5,Cable TerminologyHomes passed - about 98 of the 105 million homes in the U.S. ar

22、e 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

23、Beyond Chapter 5,Cable OwnershipMultiple System Operators (MSOs) tend to be large corporations. Rank MSOs subscription households1 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),Broadcasti

24、ng, Cable, the Internet and Beyond Chapter 5,Cable EconomicsHigh 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 televis

25、ion systems are sold on the basis of cost per subscriber.,Broadcasting, Cable, the Internet and Beyond Chapter 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 satelli

26、tes Sells packages of services Generally cheaper than cable television Few DBS markets have local television channels included,Broadcasting, Cable, the Internet and Beyond Chapter 5,Television Station OrganizationTelevision stations generally have 5 divisions Sales - sells time to advertisers Engine

27、ering - 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 Beyond Chapter 5,Cable System OrganizationDepartments of the cable franchise Technology Marketing Customer service,Broadcasting, Cable, the Internet and Beyond Chapter 5,