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Local Market Broadcasting and TV Programming

Local Market Broadcasting and TV Programming. RTV 453. 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

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Local Market Broadcasting and TV Programming

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  1. Local Market Broadcasting and TV Programming RTV 453

  2. 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

  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

  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, PAX / ION • ‘Hybrid IPTV' services – Operators use either digital or satellite for linear TV and broadband for on-demand content

  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. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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 ###

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