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Week 6 Lecture:

Week 6 Lecture:. Television in America. Defining Features of TV. universal medium, now in 99% of all U.S. homes dominant source of news and entertainment on 7 hours a day in each household most viewers watch 4 hours daily Expensive to make: one-hour drama, $1.5 million per show.

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Week 6 Lecture:

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  1. Week 6 Lecture: Television in America

  2. Defining Features of TV • universal medium, now in 99% of all U.S. homes • dominant source of news and entertainment • on 7 hours a day in each household • most viewers watch 4 hours daily • Expensive to make: one-hour drama, $1.5 million per show

  3. All Family Members Tune In (Time Spent Per Day In Hours) 1995 2003 1995 2003 1995 2003 1995 2003 Source: Nielsen Media Research, NTI Annual Averages

  4. Advertisers Spend More Money on Television Television Surpassed Newspapers in 1994, and the Lead Has Widened Ever Since 2002 (In Millions) Television Newspapers Direct Mail Radio Yellow Pages Magazines Source: Universal McCann

  5. Advertisers Spend More Money on Local Broadcast Television than Network, Cable and Syndication Television Components 2002 (In Millions) Network TV Station TV Cable TV Syndication TV* Source: Universal McCann *Includes PAX, UPN & WB

  6. Total TV Advertising Spending Total UK Ad Spend 2003: £3.7 Billion = $6.6 Billion Total US Ad Spend 2002: $58.4 Billion BBC License Fee Income: £2.4 Billion = $4.2 Billion

  7. Impact on Media • Books: General decline, go for more popular/superstar authors and subjects • Newspapers: fewer papers, more graphics, less text, less hard news • Magazines: demassify (specialize) • Music: Success depends on videos/movies • Movies: Become more specialized, lucrative • Radio: demassify (specialize)

  8. Networks • 1. Older broadcast networks NBC, CBS, ABC.

  9. Networks • 1. Older broadcast networks • NBC • CBS • ABC • 2. Newer networks: • Fox (1985) • WB • UPN (1995) • Pax (1998) Merge into CW (2006) Becomes Ion Television (2007)

  10. Television Ratings and Shares Rating = ratio of station viewers to all people in the market Share = ratio of viewers viewing station relative to number of people in market actually watching TV at same time Example: 500,000 people in market. 200,000 watching TV. 100,000 watching station KBLA ratings = 100,000/500,000 or 20% rating share = 100,000/200,000 or a 50% share

  11. Getting Programs on the Air LOCAL: The biggest expenses, revenue, staff, and production efforts all go into news. Local stations usually produce only local news, interviews, and sports shows National: On the network level, efforts go into prime time shows (8-11 p.m., EST). New ideas start with a “pilot” show; if well received, more shows are ordered. In a year a network produces about 25 pilots.

  12. History: 1950s • In 1952 FCC reserves 12 VHF and 70 UHF channels for TV use. • Early TV uses radio as model. • Video tape solves program “storage” problems. • Color broadcasting begins in the late 1950s. • Live TV shows, experimental programming, and high-quality drama create television’s “golden years.”

  13. History: 1960s • TVs in 95 percent of U.S. homes • Network news expands from 15 to 30 minutes; most people begin relying on TV as their major news source. • TV journalism gets high marks (coverage of JFK, King, and RFK assassinations, Civil Rights movement, Apollo space program, etc.). • PBS born with the Public Broadcasting Act of 1967.

  14. History: 1970s • Surgeon General’s study finds modest link between heavy TV viewing and violence among some children. • Citizen action groups form to involve themselves with TV content and FCC policies. • FCC adopts Prime Time Access Rule, mandates no network programming between 7:30-8 pm (E.S.T.). • Cable TV surfaces as serious competitor.

  15. History: 1980s - Present • Three new networks (Fox, UPN, and WBN) increase audience and ad share erosion of original broadcast networks. • Cable expands to 68% of U.S. homes; special-interest channels, PPV, and premium movie channels now combine to make cable TV a full-fledged competitor to original networks.

  16. Advent of VCRs VCRs in 90% of U.S. homes by 2000; effects are: Cassette rentals become multibillion dollar industry. VCRs encourage trend toward timeshifting. Advertisers worry about 3 new phenomena: • zapping commercials, • zipping through commercials, • grazing through channels with a remote control.

  17. Telecommunications Act of 1996 • An FCC rule creates first TV program rating system. • It also creates the “V-chip,” a built-in TV device to help parents regulate program viewing for kids. • On the programming front, high audience draw and cheap-to-make shows debut: news magazine series, revived game shows, and “reality TV.”

  18. Broadcast TV Organization • FCC licenses stations in individual communities called “markets.” There are 210 TV markets in the U.S. of varying sizes. • Seven networks supply programs to affiliates: ABC, CBS, NBC, Fox, UPN, WBN, and Paxnet. • PBS serves the non-commercial TV system. • Independents are stations with no network affiliation.

  19. TV Organization by Function • Production: programming from three major sources: • local origination (news, sports, community affairs) • syndicated programming (Oprah, Jeopardy, etc.) • network programming (for affiliate stations) • Distribution: three major distribution methods • broadcast networks • cable networks • syndication companies • Exhibition • VHF channels, 2-13 • UHF channels, 14-69

  20. Scheduling Tactics • Zeroing in on your audience • Counterprogramming • Hammock Effect • Stacking • Stunting

  21. Ownership By 1998, all but one network was under a corporate flag NBCowner: General Electric ABC owner: Walt Disney Corporation CBS owner: Viacom (Sumner Redstone) Fox owner: Rupert Murdoch’s News Corporation CW owner: CBS and Warner Bros. The Telecommunications Act of 1996 allows a firm to own unlimited stations, provided their combined reach does not exceed 35 percent of the U.S. population.

  22. CABLE NETWORKS • Program sources: • original productionsCNN, ESPN, C-SPAN • moviesHBO, Showtime, Cinemax • syndicated programsnetwork reruns, game shows • Revenue sources: • advertising • carriage feesfee network charges local system to carry their programming • subscription fees

  23. Technology Drives Media Fragmentation

  24. Technology Drives Media Fragmentation • VCR • Cable Television • Digital Broadcast/Internet • Satellite Transmission • Tivo/DVR • Internet based television (Hulu)

  25. Fragmentation of Primetime Network TV Audience in 1990s NBC 18- to 34-year-olds ABC Young Families CBS 35- to 49-year-olds FOX Urban young adults (male) 18- to 34-year-old urban blacks UPN WB Teens

  26. NBC 8:00 Friends 9:00 Will and Grace 9:30 Just Shoot Me 10:00 ER Fall 2001 Schedule UPN 8:00 The Hughleys 8:30 One on One 9:00 The Parkers 9:30 Girlfriends

  27. NBC 8:00 Friends 9:00 Will and Grace 9:30 Just Shoot Me 10:00 ER Fall 2001 Schedule UPN 8:00 The Hughleys 8:30 One on One 9:00 The Parkers 9:30 Girlfriends 3 Black Characters across all shows 3 White Characters across all shows

  28. Media Conglomeration: Number of Corporations Dominating Mass Media • 1983 50 Companies • 1987 29 Companies • 1990 23 Companies • 1997 10 Companies • 2000 6 (3 foreign owned) • 2006 8

  29. Largest Media Mergers (dollars) • 1983 340 million • 1997 19 billion when ABC merged with Disney • 2000 350 billion when Time-Warner merged with AOL

  30. Top 20 Network Shows 2003 Top 10 TV Programs - Regularly Scheduled (Rating)1 AMERICAN IDOL-TUESDAY FOX 15.52 AMERICAN IDOL-WEDNESDAY FOX 15.33 DANCING WITH THE STARS ABC 12.34 DANCING W/STARS RESULTS ABC 11.45 MENTALIST, THE CBS 10.05 NBC SUNDAY NIGHT FOOTBALL NBC 10.07 CSI CBS 8.18 NCIS CBS 8.09 60 MINUTES CBS 7.69 SURVIVOR: GABON CBS 7.6

  31. 2008 Top 10 TV Programs - Single Telecast (Rating)1 FOX SUPER BOWL XLII FOX 02/03/2008 43.12 FOX SUPER BOWL POST GAME FOX 02/03/2008 30.13 FOX NFC CHAMPIONSHIP FOX 01/20/2008 29.04 SUMMER OLYMPICS TUE PRIME1 NBC08/12/2008 20.05 FOX NFC PLAYOFF-PST-SUN FOX 01/13/2008 18.85 SUMMER OLYMPICS OPEN CEREMNBC08/08/2008 18.87 ACADEMY AWARDS ABC 02/24/2008 18.78 SUMMER OLYMPICS SUN PRIME NBC 08/10/2008 18.19 AFC DIVISIONAL PLAYOFF CBS 01/12/2008 17.99 SUMMER OLYMPICS THU PRIME NBC 08/14/2008 17.9

  32. Top 10 Broadcast and Cable Programs, October 2009 80 Rank: 103 203 213 221 251 295 304 317

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