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Explore the dynamics of local TV programming, advertising strategies, network operations, and the survival tactics in the evolving TV industry. Learn about the basics of network operations, syndication, national and local TV sales, production costs, and buying syndication. Understand the challenges and opportunities faced by local TV stations in the current media landscape.
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Traditional TV service • 210 Local TV markets • In a local market • Independent (KDFI, 27 ‘My Network TV’) (68, KPXD, ION) • Network affiliate (WFAA, Belo-owned) • O&O (4, 5, 11) • Difference for LPTV • Sources of programming • Local, network, syndicated, paid
TV Dayparts • overnight 1-6 am; early morning 6-9 am • daytime 9-3; early fringe / late afternoon 3-5 • early evening 5-6; access 6-7 note time zone variations • prime time 7-10 • late fringe 10 - 1030 • late night 1030 - 100
Types of scheduling • Stripping • Checkerboarding • Daypart differences / prime-time vs. not • Stacking, blocking • Lead off, hammocking, lead-in, tent-poling • Stunting (sweeps)
Basics of network operation • Original benefit vs. today • High cost programming / national audience • Network compensation • Value of station / network-affiliate relations • O&O • ‘Hybrid networks’ Univision, PAX / ION • ‘Hybrid IPTV' services – Operators use either digital or satellite for linear TV and broadband for on-demand content
Basics of network operation • ABC, NBC, CBS, Fox, CW – how much do they need their local stations? • How can local TV survive? • Multicasting? • Cable cost + streaming option? • Distinction of ABC, NBC, CBS, Fox vs. ESPN, CNN, MTV, HBO • A ‘cable network’ is not a network • Mobile media – national or local?
TV syndication • ‘Off Network’ • Big Bang Theory, Raymond, How I Met… • Seinfeld, Frasier, Friends • Classic TV shows • First Run • Minimum number of markets • Group owner impact • Specific genres • Cash / Barter
TV sales • National buys: upfront vs. scatter market • Local market buys: national spot market, rep firms, media buyer, local direct client • Local Cable System: Premium channels, Basic cable vs. local broadcast stations, insertion advertising, must carry, MSO • National ‘basic’ and ‘premium’ cable channels
TV sales • Local cable system or IPTV • DTV multicasting • DBS (DirecTV / DISH) limitation • All ‘linear’ services • Development of ‘on demand networks’ • Owners of TV shows / distribution
National TV • genres of TV programs--sit-coms, dramas, mini-series, made for TV movies, theatricals, variety shows, game shows, reality shows • Production costs • Reality hour: $300K - $1 million • Sit-com half hour: $750K - $2M • Drama hour: $1.5M - $2M • Co-production & deficit financing
Buying Syndication • Selling local TV inventory: • What will we pay for The Ellen Degeneres Show? • Budget for their show: $500,000 per week • 52 weeks of the year – how many re-runs? 26 weeks of production • 26 x $500,000 = $13 million per year cost • 210 TV markets ---- sell to 150 • 150 x 50,000 per station per week = $7.5 million • 150 x $20,000 per episode national clients / $100k / week = $15 million
Selling the show • Inventory: • They take none = we pay $20k per episode; They take 8 minutes = we pay $10k (x5) • We pay $10k. Our avails are 10 minutes (20 :30 spots) • Our audience rating number is 5 = 75,000 people • CPM is $8 = 75 x 8 = $600 per spot • 600 x 20 = $12,000 • SELLOUT rate 80% • $12,000 x .80 = $9600 ###
