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The Television Industry

The Television Industry. Chapter 9. The rise of television. TELEVISION BROADCASTING – scanning a visual image and transmitting it, generally with accompanying sound, in the form of electromagnetic waves that when received can be reconverted into visual images

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The Television Industry

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  1. The Television Industry Chapter 9

  2. The rise of television • TELEVISION BROADCASTING – scanning a visual image and transmitting it, generally with accompanying sound, in the form of electromagnetic waves that when received can be reconverted into visual images • Some familiar themes with regard to television • Television as we know it did not arrive in a flash as a result of one inventor’s grand change • Television as a medium of communication developed as a result of social, legal, and organizational responses to the technology during different periods • The television industry developed and changed as a result of struggles to control its channels to audiences

  3. Timeline: the television industry Figure 13.1 Timeline of the Television Industry http://www.routledge.com/cw/turow

  4. More about television • BROADCAST LIVE – broadcast as it was actually being performed, rather than being taped, filmed, or otherwise recorded • GOLDEN AGE OF TELEVISION – the period of time from approximately 1949 to 1960, marked by the proliferation of original and classic dramas produced for live television • SYNDICATION – the licensing of mass media material to outlets on a market-by-market basis • TELEVISION PROGRAM RATINGS – audits of people’s viewing behaviors that gauge which shows households are viewing and how many are viewing them; they help network executives decide which shows should stay, which should be dropped from the lineup, and how much advertisers should pay to hawk their products during breaks in the program

  5. The Contemporary television industry • It is useful to think of the television world as divided into three domains: • Television broadcasting • Subscription cable and satellite services • Online and mobile platforms

  6. Television broadcasting • COMMERCIAL STATIONS and NONCOMMERCIAL STATIONS • BILLBOARDS • UNDERWRITING • TELEVISION NETWORK • VERTICALLY INTEGRATED • BROADCAST OUTLETS • O&OS (OWNED AND OPERATED STATIONS) • NETWORK AFFILIATES • PROGRAM FEED • STATION GROUPS • INDEPENDENT BROAD STATION • COMMERCIALS • RETRANSMISSION FEES BIG FOUR TELEVISION NETWORKS ABC CBS FOX NBC

  7. Broadcast television markets Table 13.1 Top 5 and Bottom 5 Broadcast Television Markets in the U.S., 2012

  8. Table 13.2 Top 10 Multiple Systems Owners, June 2012 Top 10 multiple systems owners

  9. The cable television business • CABLE TELEVISION – television service provided to subscribers by signals sent through a wire (usually a coaxial cable, but increasingly via fiber optic lines) • CABLE TELEVISION SYSTEM – the cable television retailer that physically installs the cable and markets the program service to consumers in a particular geographic area • MULTIPLE SYSTEM OWNER (MSO) – a cable television firm that owns two or more cable television systems • SUBSCRIPTION NETWORKS – nonbroadcast programs channels for which people pay a monthly subscription fee to receive them via cable or satellite

  10. The telco and satellite business • TELCOS – telephone companies that offer television and internet services • SATELLITE TELEVISION – programming that comes directly to the home from a satellite orbiting the earth • DIRECT BROADCAST SATELLITE (DBS) TECHNOLOGY – technology that allows a household to receive hundreds of channels, from signals that are delivered digitally from satellites operating in orbit to a small dish installed on the side of a dwelling; a set-top box decodes digital signals so that they appear on the TV set

  11. Production in the television industry • LINEUP – the menu of channels that a cable television system offers potential subscribers • FORMAT – a collection of elements that constitutes a channel’s recognizable personality, created through a set of rules that guide the way the elements are stitched together with a particular audience-attracting goal in mind • Network Considerations • Consumer satisfaction • The technological limitations of the system • The amount of money a network demands from exhibitors • Whether or not the exhibitor owns a piece of the network

  12. Covering costs • LICENSE FEES – the costs that particular networks charge exhibitors for carrying the networks’ lineups in the exhibitors’ cable or satellite systems • TIERING – the strategy to which different levels of television programming are priced differently • PAY-PER-VIEW (PPV) – a transaction in which a cable provider, satellite company, or telco charges the customer for viewing an individual program, such as boxing event, a live broadcast of a concert, or a newly released motion picture • VIDEO ON DEMAND (VOD) – a television viewing technology whereby a customer uses the remote control to navigate to a menu of programs and then click on the program he or she wants to watch; unlike pay-per-view, in which the customer has to wait for the show to appear at a certain time, the program immediately appears for viewing • HEAD END – a cable system’s regional delivery location

  13. Producing broadcast channel lineups • HIGH-DEFINITION TELEVISION (HDTV) – a television display technology that provides picture quality similar to that of 35mm movies with sound quality similar to that of today’s compact discs. Some television stations have begun transmitting HDTV broadcasts to users on a limited number of channels, generally using digital rather than analog signal transmission • CHANNEL MULTIPLEXING (MULTICHANNEL BROADCASTING) – sending multiple signals or streams of information on a carrier at the same time in the form of a single complex signal and then recovering the separate signals at the receiving end

  14. Determining the cHannel’s intended audience • Four interrelated considerations • The COMPETITION • The available pool of viewers • The interests of sponsors • The costs of relevant programming Link: The Story of Television https://www.youtube.com/watch?v=NxbdMl1flUc Link: Ted Talk: Lauren Zalaznick – The Conscience of Television http://www.ted.com/talks/lauren_zalaznick

  15. Ratings RATINGS – audits of people’s television viewing behavior that help to determine where much of the money for programming and advertising should go • Aspects of the Television Rating System • PEOPLE METER • SWEEPS • HOUSEHOLD RATINGS • PEOPLE RATINGS • HOUSEHOLD SHARE • REACH • NATIONAL RATING POINTS • AVERAGE COMMERCIAL MINUTE • C3 STANDARD

  16. Preparing a schedule • SCHEDULES – patterns in which programs are arranged • DAY PARTS • PRIME TIME • SERIES • AUDIENCE FLOW • LEAD-IN • SAMPLING • LEAD-OUT • HAMMOCK • TIME SLOT • COUNTERPROGRAMMING Figure 13.2 Prime-Time Lineups on Thursday Evenings

  17. PRODUCING INDIVIDUAL PROGRAMS • PITCH – brief summary of a program idea • TREATMENT – a multipage elaboration of a television series producer’s initial pitch to network programming executives; the document describes the proposed show’s setup and the way in which it relates to previous popular series • CONCEPT TESTING – research commissioned by network executives in order to determine whether the format of a proposed series appeals to members of the series’ target audience; this often involves reading a one-paragraph description of series formats to people who fit the profile of likely viewers

  18. MORE ABOUT INDIVIDUAL PROGRAMS • PILOT – a single episode that is used to test the viability of a series • PREVIEW THEATERS – venues to which members of a target audience are invited to engage in concept testing or to evaluate newly completed series pilots • LICENSE – the contract between a production company and network executives that grants the network permission to air each episode a certain number of times; usually 13 episodes of a series are ordered

  19. Distribution in the television industry • STRIPPING – five-day-a-week placement of a television show; programmers believe that, in certain day parts, placing the same show in the same time slot each weekday lends a predictability to the schedule that target audiences appreciate • OFF-NETWORK SYNDICATION – a situation in which a distributor takes a program that has already been shown on network television and rents episodes of that program to TV stations for local airing • OUT-OF-HOME LOCATIONS (OR CAPTIVE AUDIENCE LOCATIONS) – places such as airline waiting areas and store checkout lines where people congregate and are likely to pay attention to TV clips and commercials

  20. Top 25 syndicated shows Table 13.3 Top 25 Syndicated Shows for the Week Ending September 23, 2013

  21. Exhibition in the television industry • Local stations, cable systems, satellite delivery systems, and wired phone and wireless phone companies take on the role of exhibitor when they deliver material directly to viewers • Network affiliates are particularly worried about the declining ability of ABC, CBS, Fox, and NBC to grab the lion’s share of the U.S. television audience. Local TV executives are also concerned about the networks’ strong and increasing participation in the subscription video world • Tensions are also running high in the cable exhibition business. For decades cable systems were the only major exhibitors competing with local TV stations. Now cable operators worry that their power will be eroded substantially by DBS firms such as DirecTV and DISH, as well as by broadband services from Verizon and AT&T that duplicate cable services

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