Operations and Programming

Station Functions • Administration • Technical • Programming • Promotion • News • Sales • Traffic Station Groups Most stations are owned in groups by large corporations (Ch. 8, Belo). A few are “O &O” (owned & operated) by the networks (Ch. 5, NBC; Ch. 11, CBS).

FCC limits number of stations one owner can have. Trend is deregulation, allowing more stations to be owned by one owner. TV – company may not own stations reaching more than 39% of U.S. Radio – may own up to eight stations in a local market (click image); no national limit. Some say deregulation is needed to make TV/radio more competitive; others fear loss of localism.

Broadcast TV Networks Most stations are “affiliates.” They have a contract with network. “Big Three” – ABC, CBS, NBC. Fox became competitive in 1994. Affiliation Contracts Conventional: Affiliates receive compensation from networks; programs are free to stations. Affiliates also receive “adjacencies,” or “avails” (slots for local commercials).

Compensation = average 5% of station revenue. Compensation arrangements are changing; networks are reducing or eliminating compensation. “Reverse compensation” – affiliates required to pay networks for shows. Clearance Affiliates have the right to reject network programs. About 90% of net programs are “cleared.” (But Ch. 8 did not clear “Saving Private Ryan”).

“Independents” Most independents (no network) are UHF stations. Cable has helped UHF stations compete. Relatively few stations are true independents now, because of startup networks CW and MyNetworkTV. Network Regulation FCC regulates nets thru local affiliates; stations, moreso than networks, are subject to FCC regulation.

(Operations and Programming, part 2) Cable Unlike broadcasting, cable systems depend mainly on subscriber fees. A cable system distributes broadcast and cable-only channels to subscribers. More than half of prime-time viewing is on broadcast channels. Most cable systems also sell advertising on cable-only channels.

Telecommunications Act of 1996 allows telephone companies to compete with cable. Basic-Cable Networks Cable systems are required by law to offer a “basic tier” – local TV stations and public-access channels. Must-carry: FCC says cable “must carry” local TV stations. Unless … Station demands payment (“retransmission consent”). Retransmission consent

“Basic cable” channels are those that do not require an extra fee. Examples? Most basic channels are advertiser-supported. Exceptions? Also, cable systems pay a per-subscriber fee to basic-cable channels. Superstations Hybrid of broadcast and cable. WTBS, the first. WGN in Chicago is about the only one left.

Pay-cable networks Also, called “premium” networks. Subscriber pays extra. Commercial-free. Cable system and network split proceeds 50/50. Advertising, broadcast and cable Except for direct mail, broadcasting is the largest national advertising medium. Broadcasters must target audiences and advertisers.

Mass audience still exists, but in recent years, focus has been on niche content. Niche content focuses on target audiences. Examples? Commercials vs. Program Content Stations/networks must decide how many commercials they can run without losing audience. “Zapping” has become a great problem because of digital video recorders (DVR; “TiVo”).

Pricing and sale of advertising Advertisers buy based on ratings. They target demographic groups, for example, women, 18-49. Buys are judged on: Cost per thousand viewers (CPM). Cost per (ratings) point (CPP). Advertisers whose ads don’t achieve CPM/CPP receive “make goods.”

Internet Advertising Still in its relative infancy. Pop-ups – demand viewer’s attention. Cookies – track users’ on-line movements. Viral marketing – usually videos, passed from user to user.

Employment Radio and TV stations are not the only employers. Production companies, advertising agencies, sales rep firms, news agencies, audience research. Major market radio station – about 60 employees. Major market TV – about 300.

Salary Levels Average entry-level all media -- $30K Radio -- $27,000 TV -- $24,400 Specific Jobs – Averages TV news reporter --$35,000 TV news anchor -- $85,000 Radio program director -- $70,000 General TV sales manager -- $115,000

Operations & Programming, part 3 Programs

The most important activity is the selling of audiences (to whom?). Viewers and rating points are treated as commodities to be sold. Niche programming Niche services have come into vogue in recent years. Audience targeting, segmentation let advertisers reach viewers they want.

Programmingmust be repeatable (exceptions?) What if programs all had to be local and live? Many TV stations and cable networks depend on the fact that audiences will watch programs over and over. Radio depends on listeners enjoying their favorite songs over and over. For TV, some formats “repeat” better than others. Reality programs and dramas don’t do well in reruns, but sitcoms do. Why?

The Art and Science of Scheduling Dayparts (radio) – morning drive, midday, afternoon drive, evening. TV – prime time (largest audiences), “access” time (6-7 p.m., most revenue for network affiliates; click image). TV programmers are concerned with “audience flow,” the movement of viewers from one program to another. Remote controls, VCRs and DVRs make managing audience flow more difficult. Remote control

TV programming strategies (examples?) Strip programming – everyday, same time. Counter programming – different from competition. Block programming – similar programs scheduled one after the other. Strong lead-in – audience carries over to a newer or weaker show. Hammock – two strong shows surround a newer or weaker show.

General theories Least objectionable program – rather than turn off the TV, viewers will watch LOP. Appointment television – viewers seek the most popular programs, whenever they’re scheduled. How much longer? Why so many reality programs? Reality programs popular with programmers because they can be created quickly and inexpensively. Costs less than $500,000/hour; about one-third cost of comedy or drama.

Local Programming – Television Local TV programming mostly takes the form of news. Provides valuable community service, but is also profitable. As much as 50% of sales revenue. Local cable Public-access channels let almost anyone be on TV (“Wayne’s World”) Cable access Local news inserts in CNN Headline News are common. A few local all-news channels (Austin).

Local radio Much less local than it used to be; less local ownership of stations. (group owner: Clear Channel, Cumulus) A DJ in a remote location can “voice track” an hour show in a few minutes. (live / live assist / automation / network / syndicated) Stations use strict playlists of songs. Record labels. http://www.playlistresearch.com/dallasradio.htm HD radio gives local radio new technology for 21st century. HD radio Radio wants to become available on cell phones. Radio on cell phones Formats Common formats: Religious (most on AM); AC, CHR, Country; Adult Contemporary; Oldies/Classic Rock; News/Talk.

Syndicated Programming Programs (TV or radio) that are sold to individual stations in many markets. First-run syndication (“Oprah” “Katie”). Off-network syndication (“Friends”). Children’s Programming Cable provides over 60% of hours (Animal Planet, Nickelodeon) Major networks backing away from children’s programming, but FCC requires TV stations to provide three hours per week.

Children’s Television Issues Concern over influence of TV led to V-chip in 1996. V-chip TV Program Ratings TV-Y, TV-Y7, TV-G, TV-PG, TV-14, TV-MA. Apply to all entertainment programs. Parents may block all programs of a certain rating (example, TV-MA).

Operations and Programming