Broadcast and Online Media Business Options

1. Broadcast and Online Media Business Options RTV 151

2. Traditional TV service‘terrestrial’ / OTA • 210 Local TV markets (Nielsen) (DFW) • In a local market (1000 KW) • Independent (KDFI, 27 ‘My 27’) (68, KPXD, ION) • Network affiliate (WFAA, Tegna-owned)(Gannett) • O&O (4, 5, 11) • Difference for LPTV (± 15 - 100 KW) • Sources of programming • Local, network, syndicated, paid

3. 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 • ‘decline in linear TV market share’

4. Types of scheduling • Stripping • Checkerboarding • Daypart differences / prime-time vs. not • Stacking, blocking • Lead off, hammocking, lead-in, tent-poling • Stunting (sweeps)

5. 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, ION

6. 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?

7. Modern practices • HBO model • Netflix model • Influence of digital files access • iTunes • Digital download videos • ‘How to monetize’

8. TV syndication • ‘Off Network’ • Big Bang Theory, Last Man Standing… • Seinfeld, Frasier, Friends • Classic TV shows • First Run • Minimum number of markets • Group owner impact • Specific genres • Cash / Barter

9. Advertising Supported • 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

10. Whose distribution? • A broadcast network • Dayparts scheduled / ones not • A nationally produced syndicated show • Strategic daypart needs • A digital media company (Netflix) • Nonlinear, VOD • Hulu – advertising option

11. Selling Inventory • Local cable system or IPTV • DTV multicasting • DBS (DirecTV / DISH) limitation • All ‘linear’ services • Development of ‘on demand networks’ • Owners of TV shows / distribution

12. 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: $1- $3M • Drama hour: $1.5M - $5M • Co-production & deficit financing

13. 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

14. Selling the show • Inventory: * All business is about ROI * • They take none = we pay $10k per episode; They take 8 minutes = we pay $5k (x5) • We pay $10k. Our weekly cost is $25K. 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 • Are we making or losing money? --radio

15. Settling in • Why are you here? • Adult responsibility, self responsibility • I have not mastered time travel

16. Class content • Read • Study • Learning in an active process • Getting better, not getting by • Not just show up in class and play with your phone

17. I want you succeed… • Learn about this field • Develop skills for particular jobs • Understand the importance and impact of having a job in this industry • Advertising impact and ethics • Your relationship with an audience • How you present information affects people • Legal and ethical considerations

18. One class in context • Industry person: students no longer have the luxury to just do one thing—just as they may expect to multi-task, the industry expects them to be multi-talented • News: MMJ, but all areas

19. Industry people • Long time Hollywood talent (Double Dare) and producer Marc Summers at the NBS-AERho 2014 convention said: • (Give me the magic way into a job questions) “I never get up in the morning worrying whether or not you have a job.”

20. Other industry people Local Market TV News Director--- Excuses for not getting work done, needing to be out frequently: “We all have lives.”

21. Local Radio Business • Formats emerged in 1950s • Block programming before that • Why? • What do we block program today? • Sports, talk, NPR style

22. Music Radio • Record companies / promotion • Pay for programming? • Music licensing – BMI, ASCAP and SESAC • How much inventory? • Dayparts, spot costs, gross revenue – calculate spot cost and dayparts #

23. Digital Media

24. About Digital Media • Design • digital video, game design, interactive media, interface design, electronic and digital installations… (content, like all media) • Critical • communication law and theory, media studies, new media journalism, philosophical and theoretical approaches to digital media… • Technical • Content drawn from Mass Communications and Computer Science fields…multimedia authoring, digital audio production, video field production, operating systems…

25. Traditional Content Distribution • Telegraph / Telephone • Routing signals • Electrical pulses • AM Radio, VHF, UHF, FM • Modulation • Coverage areas • POTS • Print -- newspapers, magazines

26. Digital Content Distribution • Satellite • Sirius/XM ; DISH, DirecTV ; other uses • Internet • Microwave • ISDN / DSL / wired & wireless broadband • Cable -- Digital Cable / High Speed • Fiber Optics • DTV • Mobile -- Cell Phone / Wi-Fi

27. New Media Applications • Staff at TV station doing news (options) • Web sites – newspaper and video • Interactive News Story • Entertainment Content (Netflix / Hulu) • Interactive? • Citizen ‘Journalists’ • Data sharing • Nonlinear media

28. Digital Measurements • Processing Power • How many operations per second • Original Intel chip in 1971: 2,300 transistors • Intel’s high-end today: 1.7 billion transistors • Storage • Larger data files, smaller storage space • Bandwidth • Speed of data transfer

29. Processing Power Challenges • Space / size limitation: chip and wires, and speed of copper • Changes in propagation characteristics • Development of silicon photonics • Laser / optical connections • New construction materials

30. Storage Comparisons • 1.5 KB = one double-spaced page • 1 MB = one long novel, 1 full-page B/W image, 1 3x5 color picture, 7 seconds of CD-quality audio, 0.04 seconds of broadcast quality video • 4 GB = average full-length movie • 1 Terabyte storage device would hold 250 full-length movies

31. Bandwidth Terms Kilobits: 1,000 bits per second Megabits: 1 million bps DSL: 3 Mbps, 4G, 10 Mbps (throughput) Gigabits: 1 billion bps Terabits: 1 trillion bps Petabits: 1,000 trillion bps Exabits: 1 billion billion bps

32. Bandwidth Example Download Library of Congress: 56k modem: 81.5 years 1.5 Mbps: 3 years 1.7 Gbps: 23.5 hours 10 Gbps: 2.35 hours 100 Gbps: 14.1 minutes 1 Terabit / second: 1.41 minutes 1 Petabit / second: 8.26 seconds 1 Exabit / second: 0.826 seconds

33. Traffic Types • Voice • Only narrowband required • Data • Digitized text or document information • Image • Medium to high bandwidth • Video • High bandwidth required

34. Broadband Evolution • Embedded Devices • Intelligent Wearables • Human-Machine Interactions • Grid Computing • Real-Time Communications

35. Embedded Devices • Smart Tags (RFID) • Transportation, product identifiers… • Smart Devices • Appliances,automobiles… • Smart Offices • Improve efficiency, improve working conditions • For the Home… • Smart Refrigerator • Smart Washing Machine • Smart Picture Frame • Medical issues/smart bed

36. Mobile Embedded Devices • Interactive Name Tags • Car video monitors • Navigation systems • Highways Systems ‘intelligent highway’ • Smart pillbox

37. Intelligent Implants • Hearing aids • Health history • Personal location • Diabetics monitoring blood glucose / pump provides insulin • Business applications--purchases, personal identification, safety/security in environments like schools

38. Human-Machine Interfaces • Affective Computing • Building emotions into computers • Brain-Computer Interfaces • Control computer by thoughts • Software Agents • Perform routine tasks & act proactively • The Semantic Web • Understanding of meaning • Teleimmersion • Virtual reality

39. The New Public Network • Intelligent, programmable • Low latency • Optical • Private segments of public network • Broadband • Multiservice platforms (handle voice, data, images, video) • Secure encryption and security

40. New Technology Adoptions • HDTV • iPod / Mobile Players • Slingbox / Sling TV • WiFi / WiMax • Bluetooth devices • Entertainment content (‘starfield’) • others

41. The Evil, Negative Side • Hackers • Viruses • Exploitation (scams, etc.) • Costs (availability - universality) • Warfare / Terrorism • … ? • And so apply this to business models…